Virtual Entrepreneur

Solar Incentives Heat Up To Reduce Dependence On Oil

BizJournals:
Incentives for businesses and homeowners to use solar energy are on the increase across the country as states look to reduce dependence on oil.

Florida is the latest to add a program that offers businesses and homeowners a rebate for installing solar equipment. Its Florida Energy Incentive Program took effect July 1, the Jacksonville Business Journal reports. The incentives are in addition to federal income tax credits of up to 30% of a solar-energy system’s cost.

New Mexico has a new solar market development tax credit, approved by the state legislature in March, the New Mexico Business Weekly writes.

And Hawaii just passed a law in June that raises the state’s tax credits for renewable energy, including some solar-energy systems. Commercial wind-powered and photovoltaic systems are eligible for credits of up to $500,000, a 100% increase, writes Pacific Business News.

But even with rebates and tax breaks, solar energy installation isn’t cost effective yet for many businesses. In San Francisco, voters OK’d a $100 million bond issue in 2001. Because the bonds can only be sold to finance a solar project if its cost is cheaper than the price to generate power using traditional systems, none have been issued, writes the San Francisco Business Times.