Saving Green by Going Green: Help From the Stimulus Bill

One of the chief ways the President hopes to stimulate the economy is to encourage the use of alternative energy like wind and solar. And one way Uncle Sam is encouraging everyone from giant corporations to humble homeowners is with tax breaks. Ready to make your life more green and less taxing?

“The electric bill this month was 16 dollars and last year at the same time frame it was 187 dollars. So there was a drastic improvement on the amount of money that I was saving and it was mostly due to the fact of my solar panels are paying back me money.”
-Spike Marro, Solar User

Spike Marro’s one of many Americans saving with solar. An idea recently made even brighter because now Uncle Sam is paying a bigger part of the bill.

The recently passed economic stimulus bill increased tax credits from 10% to 30% on solar: with no limit. And come tax time, that really adds up.

“The deduction will get back 19 thousand dollars as a tax credit which is money given to you. It’s not a tax deduction it’s an actual tax credit.”
-Spike Marro, Solar User

Of course, even after the $19,000 tax credit, Spike’s still out close to $40,000 on this solar system. But if that’s too hot for your budget, there are still cool ways to save.

Because the stimulus bill also upped the credit for smaller energy saving stuff windows and doors, roofing, insulation, and water heaters. Again, the credit is 30%, up to $1,500.

But before you run out and buy that new set of windows, do some research and make sure that your purchase qualifies for the credit. And make sure to hold on to your receipts.

Bottom line? Reducing your energy and tax bills? Wonderful idea. Reducing your carbon footprint? Priceless. So maybe you should see what you could do to insulate yourself by going green.

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Comments & discussion

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  • Charlie

    Interesting, I`ll quote it on my site later.
    Charlie

  • Charlie

    Interesting, I`ll quote it on my site later.
    Charlie

  • SPIKE

    Update from SPIKE (the homeowner in the story):

    Great video but I got my numbers confused. Sorry, I am not an accountant! Here are the actual numbers.

    My initial cost was $53K and the federal tax credit is $10K but I also got a $19.5K rebate from the state. So the net cost is $23.5K. My electricity bill this month was $237.55 less than last year. The savings just keeps getting better! I now calculate a break-even period of 10 years. The solar panels are guaranteed for 25 years which means I would make $36K on my “green” investment.

    A more typical initial cost to install solar panels is $40K making a net cost of $14K.

  • SPIKE

    Update from SPIKE (the homeowner in the story):

    Great video but I got my numbers confused. Sorry, I am not an accountant! Here are the actual numbers.

    My initial cost was $53K and the federal tax credit is $10K but I also got a $19.5K rebate from the state. So the net cost is $23.5K. My electricity bill this month was $237.55 less than last year. The savings just keeps getting better! I now calculate a break-even period of 10 years. The solar panels are guaranteed for 25 years which means I would make $36K on my “green” investment.

    A more typical initial cost to install solar panels is $40K making a net cost of $14K.