Grants for Solar Panels

Before you start hunting around for solar panel grants you should know that there are two basic systems. One collects the suns rays for photovoltaic (PV) heating generation (batteries, in essence). The other is solar-panel generated heat which directly heats the water you use. Most of the grants available are for the PV generation of power because it reduces reliance on the power grid.

Know the Difference

There are a number of things to consider in evaluating the two systems. You'll have to decide which makes sense for you, heating your house, energy savings and grants available to help you install either. It often comes down to expense and exposure of your solar panels to the sun. It also usually includes a difference in up-front costs for installation and long-term savings.

A brief explanation

A PV system collects and stores electricity which then heats the water you use. The older, direct solar system has no moving parts and simply heats tubes and returns hot water to your water tanks. This type of system relies on having good southern exposure to the sun.

Mostly incentives

The incentives come mostly from states that have programs encouraging solar power. States and the federal government offer grants mainly to experimental projects, most often nonprofits, and to businesses willing to undertake a significant part of the cost. For homeowners, the incentives come in the form of tax credits, not outright grants. There are, however, a few federal programs that offer grants.

Grants

The federal government offers a Tribal Energy Program Grant, the U.S. Department of Treasury offers Renewable Energy Grants and the U.S. Department of Agriculture offers Rural Energy for America Program (REAP) Grants. Each has its own structure and requirements targeting different ideals and goals. Most grants are targeted to institutions around the country for experimental projects, governmental and educational agencies. In most cases, the money is funneled through the states, not directly from the federal government itself.
Some states, like Illinois and New Jersey, offer direct grants to homeowners. The IRS treats the grant as income and the government will tax the grant amount as part of your income. Usually, the best way to search for alternative subsidies is to contact your municipal government. Yout can also check with your county and state officials, as well as the utility companies, to see what's offered.
If you still have no luck, check with your state representative's office or congressman.
Also, check with area installers of solar panels.

For homeowners

Most subsidies are for photovoltaic systems because they serve the dual purpose of heating a home and reducing electrical consumption. The incentive programs vary from state to state. Some offer the subsidies to certified contractors who pass the savings to consumers. Pennsylvania is one such state. It offers a Sustainable Energy Fund which makes funding available to certified contractors. The advantage of these kinds of indirect grants is that they are non-taxable.

References

• Grant Sources and Links
• Incentive Ins & Outs
• Grants for Solar Energy Installation