Solar Powered Houses

Ever since our lecture on Solar Power as an attractive source of renewable energy I have been doing research on the topic. To many, it seems somewhat ridiculous to construct large solar powered power plants with hundreds of photo-voltaic cells. The only places that seems to warrant attention would be sparsely populated desert areas, such as Arizona, New Mexico, and much of the southwest. What doesn’t seem as ridiculous, and actually quite feasible, is the idea of individual solar powered houses.

I came across a company called Power House Solar and all they do is make custom Solar Powered buildings in California. The map clearly shows that California, New Mexico, Arizona, West & Central Texas, and many other states are good candidates for solar power so it makes sense that individually owned solar panels are increasingly becoming more popular in the southwest.

What’s nice about California is that they have many rebates and tax incentives for solar power. Under the new Californai Solar Initiative, rebates and tax incentives can cut the cost of personal solar systems by as much as 60%. Here are some figures that I found from:

www.solarelectricalsystems.com/rebates.shtml

Rebates
Utility rebate programs are available up to 30% of the total cost of the system.

Federal, Investment Tax Credit
Residential – 30% Energy Credit (capped at $2000), IRS Form 3468
Home Based Business – At least 20% Business use to be eligible for 30% tax credit on business portion, including depreciation and up to $2000 on residential portion
Commercial - 30% Business Energy Credit, IRS Form 3468

Federal, Pre-1936 Buildings
10% Investment Credit, IRS Form 3468

Federal, Agricultural Credits
10% Investment Credit, IRS Form 3468

Federal, Depreciation
Business - Section 179 Deduction (up to $112,000 for 2007) and/or 5-Year Accelerated Depreciation

State, Property Tax Exempt
Solar installations are exempt from property tax.
(California Revenue and Taxation Code Section 6353.5)

Property Value
An increase in property value $20 for every $1 saved

Governor Schwarzenegger has even “vowed to make the environment the centerpiece of my administration and turn back the clock on pollution…My Million Solar Roofs Plan will provide 3,000 megawatts of additional clean energy and reduce the output of greenhouse gasses by 3 million tons which is like taking one million cars off the road.” His Million Solar Roofs Plan is expected to lead to 1 million solar roofs in California by 2018.

Right now estimates for solar powered houses are quite expensive, with costs around $20k – 25k for a house that uses about 660 W / day. In some sunny areas many times the house will actually product more energy than the home owner requires for that day and that extra energy is sent to the electric company and the customer is given credit for that electricity for which he/she would have otherwise payed for. With solar technology on the rise, tax incentives, rebates, and the generous amount of sunlight that the southwestern U.S. receives per year, I think that personalized solar powered homes are a solution to part of America’s increasing energy demand.