Abstract
Can we really use the power of the sun to create a workable solution to our ever increasing energy demands and aging power grid? Has the technology advanced enough to be a real solution to energy independence and security? Currently many people are looking for the ultimate clean renewable resource for our power demands. There has been exciting and promising work achieved in the areas of home energy and alternative fuels for automobiles. However, one source of renewable energy that has only token support is solar power. True there are several state and federal programs currently applicable that try to foster a continuing growth in the solar energy arena but none go far enough to give solar energy a fighting chance. The goal of this article is to present a summary of the current federal and state legal incentives available to residential consumers in Pennsylvania. It then presents possible suggestions on how to modify present state legislation to increase solar farming and locally generated and supplied solar energy to as many communities as possible, thus reducing our dependency and burden on the national electricity gird and increasing energy independence. The federal government currently has several incentives to promote the use of solar cell technology. A brief list of the programs include: High Energy Cost Grant Program, Residential Energy Conservation Subsidy Exclusion (Personal), and the Residential Renewable Energy Tax Credit.The High Energy Cost Grant Program provides financial assistance for the improvement of energy generation, transmission, and distribution serving eligible rural communities with home energy costs that are over 275 percent of the national average. From 2003-2010 there have been less than 65 projects under this program, mostly centered in Alaska and Arizona. This is a very important program but a very limited one that does little to encourage the widespread use of solar energy through the country.Under the Residential Energy Conservation Subsidy Exclusion Program, energy conservation subsidies provided to customers by public utilities, either directly or indirectly, are non-taxable. This exclusion does not apply to electricity-generating systems registered as qualifying facilities under the Public Utility Regulatory Policies Act of 1978. If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have