Solar Rebates Decreasing
Solar Rebates Decreasing in Arizona? Yes, and it's making it tough for customers and contractors. These rebates can be reduced or cut with little notice and it is making doing business extremely difficult for a lot of solar energy contracting companies and their employees.
When the incentives are high, people buy, when the go down it's just not worth the investment and the customers vanish. This leaves contracting companies laying off workers due to lack of work.
Solar Panels On Roof
Solar incentive are paid on a wattage basis. In the beginning of 2010 they were paying $3 per watt. After a couple of different cut they are down to $1.95 per watt, with $1.75 in the near future. At $3 per watt that pays about $15,000 for a system that costs between $25,000 and $30,000. At $1.75 per watt the payout is only $8750.
This means a much higher initial outlay of cash for the consumer and a much longer return on investment. It also makes it nearly impossible for contractors to sell solar systems. At one time Arizona had over 300 companies in the business of installing residential solar power, that number has been greatly reduced because of the decline in rebates.
Rebates are financed by tariffs charged by the utility companies, so in essence, rebates are paid for by all the utility companies customers. As a solution to this problem Arizona Public Service is considering raising the tariffs by fifty nine cents a month to all of it's customers.
Solar Panels
The issues are more complicated than just the utilities lowering their rebates. In 2008 the $2,000 limit cap for the federal tax credit was lifted so the utility companies figured since the government was paying more, they should be able to pay less. Another factor is the changing cost of solar. Less money in the way of incentives forces the industry to come up with cheaper ways of producing the same product. In a years time the cost per watt has gone from $7 to $5. When forced to come up with cheaper ways of doing business the solar power industry has.
But even with the reduced production costs solar companies are having a hard time selling their products. Other companies simply switch gears, if solar power is to expensive they push for adding extra insulation and changing out old appliances for more energy efficient ones.
It's not so much the solar rebates decreasing that hurt the industry, it's the suddenness of it all. When the utility companies run out of rebate funds they shut them off without advance notice. The Corporation Commission is working on a plan that would require a reduction schedule so that contractors and customers could better plan for the future.
Pages related to Solar Rebates Decreasing
Green Living :
Global Warming Solutions :
LED Lights
Here Comes The Sun :
LED Lights And Plants :
Conserving
Sustainable Development :
Using Alternative Energy :
Time To Go Solar
Biomass Energy :
The Best Renewable Energy :
Solar Electricity System
DIY Solar Panels :
12V Solar Panel :
Alternative Home Energy Solutions
Homemade Solar System :
Reducing Energy Usage :
Off Grid
Making Electricity :
Using Wind Power :
Solar Generator
Bio Fuels :
Wind Power Solutions :
How Electricity Is Produced
Homemade Windmills :
Making Wind Power :
DIY Solar Power
Generate Solar Electricity :
Energy Efficient Home :
Green Building
Solar Power
Wind Power
Environmental
Energy Reduction
Organcic Life
Saving Money
Social and Local
