Residential Renewable Energy Tax Credits
Consumers who install solar energy systems, small wind systems, and/or geothermal heat pumps can receive a 30% tax credit for systems placed in service before December 31, 2016; there is no upper limit.
Solar Panels (Photovoltaic Systems) – Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
Solar Water Heaters – At least half of the energy generated by the “qualifying property” must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.
Tax Credit includes installation costs.
Small Wind Turbines (Residential) – Must have a nameplate capacity of no more than 100 kilowatts.
Tax Credit includes installation costs.
Geothermal Heat Pumps Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth’s natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.
Systems must meet the following requirements:
Closed Loop:
EER = 14.1
COP = 3.3
Open Loop:
EER = 16.2
COP = 3.6
Direct Expansion:
EER = 15
COP = 3.5
Tax Credit includes installation costs.
