Federal Incentives
Federal Residential Renewable Energy Tax Credit 36,000.00
.01 Section 25D provides a tax credit to individuals for residential energy efficient property.
Section 1122 of Division B of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, amended section 25D for taxable years beginning after December 31, 2008.
The amount of a taxpayer’s section 25D credit for a taxable year beginning after December 31, 2008, is equal to the 30 percent of the qualified solar electric property expenditures made by the taxpayer during the taxable year.
The tax credit for this system is likely to be $36,000.00
State Incentives
Pennsylvania Sunshine Solar Rebate Program (residential 1 to 10 kW) 22,500.00
The program is set up to provide rebates that decline over time as certain benchmarks, or "steps", of installed capacity are reached.
The residential and small business portions are assigned separate incentive schedules for PV rebates, but the schedules are combined for solar thermal installations.
Each residential PV step contains 10 megawatts (MW) of installed capacity.
Currently, the residential portion of this program is in step 1. The rebate for this system is estimated to be $22,500.00Solar Renewable Energy Credits
Pennsylvania SRECs 6,260.00
The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created on behalf of the solar owner and sold to electric suppliers to meet their solar RPS requirement.
All electric suppliers are required to use the SREC program to show compliance with this part of the State’s Renewable Portfolio Standard.
SRECs are designed to provide solar owners with an economic incentive to investing in solar electric systems which improve the electric distribution grid.
They represent the renewable attributes from your solar facility, bundled in minimum denominations of one megawatt hour of production.
In addition to it’s own state, Pennsylvania solar panel systems can sell their SRECs to Washington, DC, Ohio and North Carolina.
It is estimated that this photovoltaic system would generate approximately $6,260.00 per year (assumes rate of $313.00/mW).