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Federal Rebates
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30% Federal Tax Credit!

All Skyline Collectors and Systems qualify

for the Federal 30% Tax Credit

Click on the link to the Left to learn about the Federal Rebate and

possible Incentives from your State or Utility Company.

A taxpayer may claim a credit of 30% for a solar water heating system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed.

If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner.

Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.

If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit can be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.


  • There is no maximum credit for solar water and space heating heating systems.
  • Systems must be placed in service before December 31, 2016.  
  • Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.  
  • At least half the energy used to heat the dwelling's water must be from solar in order for the solar water-heating property expenditures to be eligible.  
  • The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.  
  • The home served by the system does not have to be the taxpayer’s principal residence.  


Note: The American Recovery and Reinvestment Act of 2009 does not allow taxpayers eligible for the residential renewable energy tax credit to receive a U.S. Treasury Department grant instead of taking this credit.

Established by the federal Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 (H.R. 1424) extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016, the ability to take the credit against the alternative minimum tax, and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p. 46), which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.


Slash Your Utility Bills: Power Up on Your Own Now is a great time to upgrade your house to use less energy -- and maybe even generate your own.

ByJessica L. Anderson, Associate Editor
Pat Mertz Esswein,, Associate Editor

From Kiplinger's Personal Finance magazine, October 2009

If Uncle Sam ran an infomercial plugging its new energy programs for homeowners, it might sound something like this: For a limited time only, get federal aid for home improvements that can help you reduce your tax and energy bills! Through 2010 you can cut your tax bill by 30% of the cost of certain projects, up to $1,500! And through 2016 you can get a credit for 30% of the cost -- with no limit -- of geothermal heat pumps, solar panels, solar water heaters, small wind-energy systems and fuel cells!

And that’s no hype. Washington is serious about energy efficiency, and will pay up to $1,500 for home improvements, such as windows and doors, certain insulation projects, roofs and high-efficiency water heaters (for more information, visit

The government has also slated $300 million for rebates on the purchase of Energy Star-qualified appliances (see for details). The money should be available late this year or early next.

With the federal government chipping in 30% of the cost, generating power at home makes economic sense for many Americans. In addition to the federal tax credit, 44 states offer renewable-energy tax incentives, ranging from property- and sales-tax discounts to income-tax credits. Rebates are available in 42 states from a variety of sources, including utility companies (see for incentives in your state).

Lower prices combined with government incentives mean that a home power system should pay for itself -- but in most cases it’s a long-term proposition. One thing you can count on, though: Energy prices from your local utility will only go up, so your home power system will look like a smarter decision as time goes by.


Solar hot water. A solar hot-water setup is relatively inexpensive and has a quick payback.

How it works: Collector boxes (usually placed on your roof) trap solar heat and preheat cold water. On a sunny day, even in the winter, the fluid in the collectors can reach 150 degrees Fahrenheit. The heated water then flows either to your existing hot-water tank or to a special tank.

On a $7,000 system, the federal credit drops the price to just $4,900. State and local incentives vary widely, but they can really add up.




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