Making solar affordable
While the significant costs of solar technology are incurred at the beginning when the panels are installed, there are ways to help reduce the total of the investment and amortize costs over the life of the equipment. Numerous incentives and credits are available from both state and federal governments to help reduce the overall cost of the installation. Coupled with the ability to spread installation costs over time with an energy efficient mortgage, installing solar technologies on a home or business can become a financially viable endeavor.

In North Carolina, tax credits can be as high as 35%, up to $10,500 for installing solar photovoltaic panels, and can be claimed over five years when paying taxes. Additional federal tax credits will be available as well in January of 2006 as part of the recently passed federal energy bill. For a complete listing of tax incentives and credits, visit the National Database for State Incentives for Renewable Energy (DSIRE), made available by the NC Solar Center.

The NC GreenPower program also helps to reduce the operating costs of solar power through subsidies it provides to generators who add solar photovoltaic power to the state’s electric supply. Through the voluntary tax deductible contributions of its subscribers, NC GreenPower provides a payment over and above what suppliers receive from their utility for each kilowatt-hour that is added to the grid.

Currently, the NC GreenPower subsidy for solar power is 18 cents per kilowatt-hour generated to the grid. Added to the payments received from the local utility that services the installation, solar power suppliers can realize economic returns that equal or very nearly equal the per kilowatt-hour cost of generation. And as solar technologies expand, it is hoped that technology and operating costs will come down as well over time. For those individuals and businesses interested in installing solar panels and selling their power back to their electric utility, please consult the "Guide to Interconnecting Small PV Systems to NC GreenPower", a document developed by the NC Solar Center in partnership with NC Greenpower.

Where is solar power being generated?
Solar PV electricity is one of the most widely used renewable energy technologies and is in use across the state. Many homeowners using solar PV systems utilize the electricity generated to power their own homes. Doing so enables them to reduce or eliminate their retail electric demand. Others elect to add some or part of the electricity generated to the state’s power supply. Either way, electricity generated from solar PV systems helps to reduce dependence on fossil fuels and thus provides positive benefits to the environment.

NC GreenPower currently has agreements with 13 solar PV providers, many of whom are already online and adding power to the grid. For a complete update of NC GreenPower resources, view the list of program producers.

As October officially marks energy awareness month, the NC GreenPower quarterly newsletter is taking a closer look at each of the renewable resources that make up the program. Each quarterly issue will take a closer look at a specific resource, providing information on how it works, who is using it and how it supplies the NC GreenPower program.

Governor Declares October Energy Awareness Month