A growing concern over dwindling natural resources and their subsequent rising costs, has led many consumers to seek out renewable energy sources.  Recognizing the benefits of renewable energy use, state and local governments have begun offering financial incentive programs to government, municipal, and private owners for their use of renewable energy.

The Database of State Incentives for Renewable Energy (DSIRE) provides an accurate and comprehensive listing of incentive programs from state and federal agencies, offering financial incentives to users.   It also lists required technologies for qualification as well as links to legislative actions, tax rebates, low-interest loans, and grants.  It’s an invaluable resource to the customer in determining which incentive program they may qualify for.

The Energy Policy Act of 2005 (Epact) provides incentives in the form of tax credit to individuals purchasing and installing solar equipment. Purchases made between January 1, 2006 and December 31, 2008 may qualify for tax credit in the form of a dollar-for-dollar reduction in tax liability.  Purchases made anytime thereafter may qualify for a 10% tax credit.   This particular incentive is the first tax credit ever offered to residential buyers.  Commercial users may qualify for a 30% reimbursement with no cap, and photovoltaic buyers can earn a tax credit of 30% up to the first $2,000 spent on equipment and installation.

Customers can consult The SEIA Guide to Federal tax Credits for Solar Energy, a 40-page manual produced by the Solar Energy Industries Association.  "The passage of the solar tax credits was an historic moment for solar energy development in the United States.  Already, the tax credits are encouraging states and private industry to invest in solar power, fueling market growth and making solar more affordable for more Americans. This tax manual provides guidance for solar companies and consumers to fully utilize the federal incentives.”  Rhone Resch, President of SEIA .

Many utility companies can provide additional information to consumers regarding the available renewable energy sources and programs, as well as the incentive programs offered in a specific region.  Several utility companies throughout Texas offer low-interest or long-term loans to residential customers to help finance energy efficient appliances and renewable energy providing equipment.   These low-interest rate loans or extended loan durations allow customers who couldn’t otherwise purchase renewable energy sources to do so.

The Farm Security and Rural Investment Act of 2002 created the Renewable Energy Systems and Energy Efficiency Improvements Program under Title IX, Section 9006. This program funds grants and loans to help rural business owners and agriculture producers purchase renewable energy producing equipment.  In March of 2008 the USDA announced they were accepting applications for these grants and loans and had secured in excess of $220 million dollars as incentive funds for energy efficiency improvements and purchasing renewable energy systems.

Finally, Texas Tax Code offers a franchise tax exemption to manufacturers, sellers, or installers of solar energy devices.  Additional exemptions are available for the creation of new jobs, research and development expenses, and investment or expenditures in the field of solar powered energy on or before January 1, 2000.