Solar Incentivized

In previous posts, we mentioned the federal tax credit for new solar power installations. Put solar panels on your rooftop and Uncle Sam will let you take 30% of the cost -- up to $2,000 -- directly off your IRS bill. In California, the deal is sweetened considerably. Under the California Solar Initiative, the state will pony up $2.9 billion in solar incentives. According to the San Francisco Chronicle's Gregory Dicum, solar adopters could expect a $10,000 rebate on a photovoltaic investment on the order of $25,000 to $30,000. Currently, the state pays $2.80 per watt on new solar installations, with the incentive tapering to zero by 2017. But by then, your electricity will effectively be free. In the meantime, payments on a home equity loan could conceivably amount to less than your current utility bill. From a home-ec perspective, solar is starting to make good sense.