Solar Universe in Thousand Oaks
Rebates help lower cost of solar
A light bulb went off in the head of a Thousand Oaks retiree after he heard about tax rebates for solar energy. Now he is back to work.
Mitch Katz was searching for a way to reduce the $1,500a-month electric bill on his 7,000-square-foot home. Upon investigation, he found that California is giving almost a 20 percent rebate and the federal government is offering a 30 percent tax credit to homeowners who convert to solar power.
His familys swimming pool was already heated by solar energy, keeping it at a constant 85 to 90 degrees without using propane, Katz said.
Research showed him that a group of 126 solar panels installed on a hill on an unusable portion of his property would give him more electricity than he needs, taking him off the grid and giving him energy credits.
The photovoltaic solar panels for his 28kW system cost $150,000 before rebates. He did the math and realized with the rebates he would be saving money after just a few years.
I was so impressed with the money I am saving that I bought a franchise (in the solar company). The federal tax credit is a real tax credit, not a deduction - Katz said.
Those who need to finance the balance can still come out ahead, with payments on the loan costing less than what they are paying now for electricity, he said.
The cash state rebate, for systems smaller than 50kW in capacity, is part of Californias $3.3-billion, Million Solar Roofs Program. The goal is to create 3,000 megawatts of new solar-produced electricity by 2017.
Once the project is completed, Solar Universe, the franchise Katz is now associated with, sends the required information about the equipment installed to the state, and a state administrator determines the final cash rebate amount, Katz said.
The rebate program for Southern California Edison customers is based on expected performance, which is calculated using factors that include shading, orientation, tilt, location and 30 years of radiation data.
The Investment Tax Credit from the federal government is a reduction in the overall tax liability for individuals or businesses who install solar electric and solar water heating on residential property. This credit is realized when a tax return is filed.
It will take Katz about four years before the solar energy system he installed will pay for itself.
Typically it takes about five years, and the cost-effectiveness grows the longer one stays in a home.
Solar power pays off for those with an electric bill of $250 or more - Katz said.
Direct Link: Thousand Oaks Acorn: rebates lower the cost of going solar