U.S. solar tax can create taxable revenue

Friday, July 20, 2012 @ 12:07 PM
posted by rene5432

Residential owners of solar power installations are eligible for a 30 percent U.S. federal tax credit, which essentially pays for itself when users sell back excess power as a means of taxable revenue, a trade group recently announced.

Rooftop solar installations that have the capacity to sell extra power, or those that a homeowner installs on a lease, can create a 10 percent rate of return on the tax credit, according to the American Council on Renewable Energy.

For example, over a period of 30 years, a $10,500 tax credit on a homeowner's solar panel system would generate $22,882 in tax revenue.

"The purpose of the study is to destroy any myth that [the investment tax credit] is costly to the taxpayer," said Lyndon Rive, chief executive officer of San Mateo, California-based SolarCity in an interview today. "It’s the right thing to do, but it’s done under the emotion of a sacrifice."

According to the Solar Energy Industries Association, U.S. solar installations grew to more than 500 megawatts in the first quarter of 2012, marking the strongest first quarter ever for the solar industry.

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