Here is an update from SEIA (Solar Energy Industries Assoc.)…note the removal of limits on solar water heaters. It’s looking better and better for Maryland homeowners considering solar energy.
Yesterday, congressional conferees reached a deal on the final language for the American Recovery and Reinvestment Act of 2009. The final cost of the bill is $790 billion. Once the final language is released, SEIA will complete a more detailed analysis of the final Recovery Act. Based on our conversations with congressional staff, we expect our top priorities to be included in the bill as follows.
Renewable Energy Grants: Offers DOE grants (as an alternative to the ITC) equal to 30 percent of the cost of solar property. To be eligible for the program, the project must commence construction in 2009 or 2010 and be placed in service by January 1, 2017. Applications must be filed by October 1, 2011.
Repeals Penalty for Financing Solar Projects: Allows businesses and individuals to qualify for the full amount of the solar tax credit, even if projects are financed with local development bonds or other subsidized energy financing.
Loan Guarantee Program: Establishes a temporary DOE loan guarantee program for renewable energy and electric power transmission projects. The program is available for any renewable technology that commence construction by September 30, 2011. The program is funded at $7 billion for renewable energy, which will be used to pay for the credit subsidy costs.
Manufacturing Investment Credit: Provides up to $2 billion to fund 30 percent investment tax credit for facilities engaged in the manufacture of advanced energy property. Projects must be certified by the Treasury, in consultation with the Secretary of Energy, through competitive bidding.
Remove Limits on Solar Water Heating: Repeals the $2,000 monetary cap, making solar water heating property eligible for the full 30 percent tax credit, like other solar technologies.
Government Procurement: We are still tracking down details, but there appear to be billions of dollars available for the installation of solar on government buildings, military bases and schools.
Summer is here and solar water heaters have never been more affordable. There are wonderful tax incentives in place at the federal level and county levels in Maryland. If you have ever though about installing a solar water heater on your home now is probably the best time to get more information and decide whether or not solar energy is right for you.
Is it the money? Solar water heaters are the most cost effective renewable energy investments offering short payback periods and lower up-front installation costs. Current tax incentives make them even more financially accessible to most Maryland homeowners. 
