On October 6, 2008 Governor Granholm signed SB 213 into law. This renewable energy bill requires utilities to obtain 10 percent of their energy
from renewable resources by 2015 as well as requiring utilities to allow for net metering for residential and commercial customers who operate renewable energy systems (up to 20 kilowatts).Unfortunately, the bill does not require a utility to allow more than one percent of its in-state peak load to come from net-metering operators (and only .5 percent from systems under 20 Kw or less). However, this small step means small residential and commercial solar energy systems and wind energy systems will become even more affordable over time with a much improved return on investment.
Federal Tax Credit for Renewable Energy
Couple this with the Federal Income Tax Credit that gives commercial and residential solar hot water heating systems, solar photovoltaic systems, and wind energy systems a 30 percent tax credit with no limit, and it seems we are on the cusp of a new era in renewable energy production.
A 5ooo watt system that once to retailed for $49,000 (currently on sale at Eco-Building Products for $42,000 and eligible for $12,900 tax credit) will now have a $14,700 tax credit available. In addition, the same 30 percent federal tax credit (as in tax liability, not merely a deduction) applies to the installation costs. For a relatively modest investment, a home owner or business owner could feasibly become energy-independent and have their system paid off in less than 25 years. Perhaps even less so as energy costs continue to rise.
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