Opens in a new tab

Blog Action Day 2009: Climate Change

October 15, 2009

Welcome to Blog Action Day 2009, where thousands of bloggers worldwide are focusing on climate change issues.

What better way to counter adverse climate change effects (aka global warming) than to turn to our planet's ultimate energy source: the sun.

Solar power is the cleanest of all green energies. According to the Department Energy's Web site, the sun generates enough clean energy in one day to provide a year's supply of energy for your home or office.

The photovoltaic cells, or solar cells as they also are called, collect energy from the sun's light, transferring the electricity directly into the home or office power system.

Germany s Biggest Solar Electricity Plant Begins Operation

But solar power does have one big drawback; it's expensive to install the architecture necessary to tap the sun's energy for use powering a home.

To encourage more of us to convert, or at least consider, solar power, lawmakers have created generous tax breaks.

Homeowners can claim a tax credit of up to 30 percent of the costs ofl qualified solar water
heating and photovoltaic systems. Solar water heating systems produce
hot water, photovoltaic systems produce electricity.

Credit qualification requirements: To qualify for the credit, residential photovoltaic systems must provide electricity for the home and meet applicable fire and electrical code requirements.

Eligible solar water heating systems must be certified by the Solar Rating Certification Corporation (SRCC) or a comparable entity approved by the state government in which the system is located.

In addition, at least half of the energy used by the system to heat the water must be solar energy. However, the tax credit does not apply to solar water-heating systems for swimming pools or hot tubs.

Both the credits are available for systems "placed in service" — that
is, the equipment is ready and available for use — through Dec. 31,
2016.

Since the enhancements to the solar credit are part of the American Recovery and Reinvestment Act, the systems also must have been installed after Feb. 17, the date the law took effect.

There are no income caps to qualify for the solar energy tax credit. Regardless of your earnings, you can claim the credit.

Note, however, that the credits are nonrefundable. This means you can use the credit amount to reduce your tax bill to zero, but not below that. You will not get a tax refund if the amount of taxes you owe are less than your solar energy tax credit.


And don't forget about your state. Many jurisdictions offer solar incentives of rebates and credits to help pay for solar power. The DSIRE database can help you discover how your locale is promoting solar power.

Related posts:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
IRS sending refunds to families that claimed adoption tax credit carryforwards

October 18, 2026

Tax reform changes to the adoption tax credit meant some families didn’t get the new…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • I agree that solar power is the cleanest of all green energies. Its really cool that the sun generates enough clean energy in one day to provide a year’s supply of energy for your home or office.

  • To counter the mess that we have created due to our reliance or “over reliance” I should say on fossil fuels we need to turn to alternative power sources and solar power certainly has the potential to provide us with more energy then what we actually need.
    Cheers
    Sandra

  • What would be even better is to fund a research on finding a cheaper material for the solar panels which would deliver the same effect as the materials used now. That way, more people will be able to afford it.

Leave your comment