Michigan Net-Metering has Arrived

Michigan Net-Metering Enacted
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.

Renewable Energy Tax Credits: Ending Soon?

Renewable Energy Tax Credits
The remain months of 2008 are ticking down. The promise of renewing tax credits is very alluring, but to lock-in your guaranteed 2008 credits, renewable energy enthusiasts should start their project before the end of 2008. Remember, residential credits are limited to $2,000. Commercial enterprises have no limit on the tax credit.

Federal Tax Credits for Renewable Energy Systems
Renewable Energy Systems, such as Solar Hot Water Heating systems, and Solar Panels Systems (Photovoltaic Systems) are eligible for a tax credit of 30% of the cost, up to $2,000. (Use IRS Form 5695.)

Solar Water Heating Requirements

• At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.
• The credit is not available for expenses for swimming pools or hot tubs.
• The water must be used in the dwelling.
• The system must be certified by the Solar Rating and Certification Corporation (SRCC).

Photovoltaic Systems Requirements

• Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

Eco-Building Products Renewable Energy Systems
All our systems are SRCC rated and designed to be flexible. Solar Hot Water heating is the most bang for your buck. See our Solar Thermal Systems here. Photovoltaic systems are quickly becoming incomprehensibly difficult to figure out. Please see Eco-Building Products Solar Energy systems for simple, yet very powerful, solar energy systems. We have select the best kits so you can focus on finding the right installer, or installing it yourself without the hassle of matching the perfect inverter to the most perfect solar panels.

Solar Energy Installers, Designers, and Tax Credit Experts
We will install your solar hot water system, your solar photovoltaic system, your wind turbine system, and fill out your Renewable Tax Credit forms for you. We provide accurate rewnewable energy estimates and can fully design you a custom system for you home or business.