"Solar Array and Hurray"
Solar Array and Hurray
by Don Ames
Recently we received a new closer look at the sun from a camera traveling in space. Beautiful pictures of a blue sun. I think the sun is scary and I have no interest in getting closer. I also think that one day the sun will provide all our energy needs.
OK, we all understand that solar energy is good clean desirable power. Solar energy looks mighty good if you compare it to the smoke stack on a coal fired electrical plant or the fish ladder on a hydroelectric dam. So, what’s keeping us from using solar panels to generate our homes electrical needs? Why, it’s George Lopez! No, wait, make that George Washington.
Here is the basic financial breakdown of a residential solar installation that would produce 2,000 kill-o-watts of electricity per year. This cost analysis is for a system installed in pacific power territory, Oregon. Installation includes roof mounting hardware and the inverter installed in the utility room next to the electrical panel. Total project cost is $14,082. Available incentive through the Energy Trust of Oregon ( incentive funds actually provided by the power provider, Pacific Power. Funds come from Pacific Power and are routed through the Energy Trust ) incentive funds are $4,140. Out of pocket cost for the solar electric system is $9,942. But wait, we’re not done yet. To help offset the cost of this system, Oregon offers a $5,520 Oregon income tax credit. And the federal government offer a $2,983 federal income tax credit. Final cost of the 2000 kW solar electrical system is $1,439.
The tax credits are for real. For the federal tax credit all you need to do is complete federal form 5695. You can claim up to $1,500 per year over a five year term. Keep your receipt from the contractor showing that you have paid the account in full.
For the Oregon State tax credit, you need to complete the Application and Verification Form for Residential Energy Tax Credit Certification ( application is available on line )( Oregon.gov/energy) and mail the application into the Oregon Dept. of Energy. This application has sections that need to be completed by yourself and sections that need to be completed by the contractor (contractor has the technically info you will need). Check with the contractor before signing a contract and before work begins and ask him to provide you with the application that has the contractor technical stuff already filled in. Add a copy of the invoice mark paid and get it in the mail. the State of Oregon will send you a tax credit certification card back in the mail. It is this card that you attach to your Oregon income tax return.
One thing to keep in mind with tax credits is there is a difference between total project cost and allowable project cost. Your contractor should be able to sort this out for you. By the way, you need to select a contractor that is approved by the state. That means that the contractor has completed training from the State concerning solar system installations and tax credits.
Well, this covers solar electric installations in Oregon in Pacific Power territory. One example. Now we need to learn about solar costs in other parts of the country. If you can help, email me…Don Ames