Federal Tax Incentives and Grants

Currently, residential installation of renewable energy technology is elibigle for the Residential Renewable Energy Tax Credit. The credit is 30% for a qualified installation of solar electric systems and solar water heating systems. Current expiration of this incentive is 12/31/2016 and the credit may be carried over into the next tax year. The home served by the system does not have to be the taxpayer’s principal residence.  The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.

State of Georgia Tax Incentives

Residential:

Georgia currently offers its own Clean Energy Tax Credit that can be used to reduce a homeowner’s state tax bill by thousands of dollars a year.  Any taxpayer installs a PV/solar electric system or a solar water heating system, or makes certain other clean energy or energy efficiency improvements to a single-family residence is eligible.  The amounts are, for:

  1. PV/solar electric systems, a  tax credit of 35% of the total cost of installing the system, with a cap of $10,500.
  2. Solar water heating systems,  tax credit of 35% of total cost of system, but with a $2500 cap. (Home solar water systems usually involve a much lower overall investment).
  3. Certain other clean energy systems,  a tax credit of 35%, with a $2,000 cap.

Any unused portion of these tax credits may be carried over for five years.
This tax credit is available through 2012. The tax credit program is funded up to $2,500,000 annually, with credits distributed on a first come, first served basis.
The tax credit is considered a rebate and is not taxable income.

Commercial:

Georgia continues to offer a 35% Clean Energy Tax Credit, similar to the residential state tax credit described above, for installations of solar or other clean energy systems and energy efficiency projects in most commercial settings, i.e., any structure other than a single-family residence.

However, in lieu of this tax credit, any such clean energy installation or energy efficiency project put into service between 2009 and December 2012 is eligible for an up-front CASH GRANT upon being placed in service. The amount of any such grant is:

35 % of the total cost of the system, including installation, with a

$500,000 cap for photovoltaic (solar power) systems;

$100,000 cap for solar water and other clean energy systems;

$100,000 cap for qualified energy efficiency projects or retrofits.

This cash grant program is limited by a $ 4,000,000.00 ceiling. That is, only $ 4,000,000.00 (four million dollars), i.e., the specific amount allotted by the state from federal stimulus funds, is available for such commercial project cash grants. Funds will be distributed on a first come, first served basis. Once the state’s $ 4,000,000.00 in federal money is exhausted, no state funds will be used for such cash grants for commercial clean energy /energy efficiency projects.

Other Clean Energy Incentives Available in Georgia:

Many localities (city or county governments) and individual state agencies, as well as the local power companies and energy cooperatives (EMC’s), also offer incentive programs for various clean energy/energy efficiency systems. For further detail on such localized incentives, see www.dsireusa.org under the Georgia state materials.

North Carolina Incentives

NC currently offers a 35% tax credit. Residential installation limitations: $10,500; Allowable credit not to exceed 50% of taxpayer's liability for the year. Current expiration of this program is 12/31/2010. Solar Water Heating incentive is also 35% with a max credit of $1400.

DSIRESOLAR - Database of state, federal, utility and federal incentives and policies relating to adoption of solar technology.