Now natural living pays yet another way. From January 1, 2006 to December 31, 2007, homeowners can receive thousands of dollars in tax credits slashed from their income tax bill simply for doing the right thing in installing solar energy systems.

A solar-powered home hot water system wins a tax credit of 30 percent of the system’s cost up to $2,000 taken directly off the bottom-line after any state incentives. A photovoltaic heating and cooling system can earn another $2,000 credit by the same principal. Total potential savings are as high as $4,000. And credits can carry over to the following year as needed.

New energy laws passed by Congress—including the first consumer solar energy incentives in 20 years—encourage many forms of improved energy. Although the $52 million granted the solar industry is a comparative drop in the bucket, supporters say it’s enough to jump-start interest. They expect that even more states will now offer breaks for efficient energy use. An accelerated solar-power incentives program for business owners also applies.

“For anybody who has ever considered installing a solar system, Washington is telling you to do it now,” says Rhone Resch, president of the Solar Energy Industries Association. This current wave of tax credits should bring solar power costs over the tipping point.

To zero in on local-area solar equipment suppliers and state financial incentives, visit dsireusa.org.

Source: Forbes