Homemade Solar Cell

Recently the Emergency Economic Stabilization Act of 2008, H.R. 1424, was passed by Congress that includes a new federal investment tax credit to assist the public in offsetting the wind turbine cost for their homes, businesses or farms. Without any delay, president Bush signed the bill into law.

The Act has allowed us to get a tax credit of 30% of the cost of our wind power system, provided that it’s power capacity does not exceed one hundred kilowatts, and the credit is limited to $4000. However, there are a few problems with the Act. Firstly, it does not apply for wind generators installed before 3 October 2008. Secondly, with home wind turbines, the credit is further limited to the lesser of one thousand dollars per kilowatt and four thousand dollars.

Traditionally North America has had the largest market in the small wind turbine industry, but lately it was getting under-cut by its European rivals who offered greater tax relief for small wind turbine systems. So the tax incentives were very much loved by Ron Stimmel, a small wind advocate for the American Wind Energy Association (AWEA), who said:

“The AWEA thanks President Bush for acknowledging and promoting the role of small wind power solutions towards our energy security and environmental concerns. These subsidies will promote Americans to save on energy costs, while reducing global warming in a big way.”

Being the first federal tax subsidy for small wind turbines since 1985, industry analysts believe it could help inflate the United States wind power market by over forty-percent a year. Not to mention the equipment certification scheme that, together with the Act, could help secure America as the global market leader.

To put the industry on equal grounds with the photovoltaic (PV) solar industry, the AWEA, and its members have long requested a 30% federal investment incentive for small wind turbines 100kW and smaller. And now their persistence has paid off.

With both the wind and solar power industries operating in the same renewable energy market, it made sense that the legislation also offers tax relief for solar power installations. Small solar power owners receive 30% credit on the cost of the system, limited to four thousand dollars. And commercial solar owners get an unlimited 30% tax credit on their installation costs.

But what if someone installs their own small wind turbine? It appears that do-it-yourself installations will also get tax relief, as long as they can offer proof of all the cost and when they were incurred. But, it is always recommended to get sound legal advice to help you get the highest tax relief possible.

Thanks to the new legislation, together with existing state tax incentives, everyone can benefit from having their own home solar power and small wind turbine at home. Whether you decide to invest in an expensive expert solar/wind energy system, or plan to build and install it yourself, massive power and tax savings are within your grasp. It just requires you to take some action.