Federal Incentives Give Boost for Renewable Residential Energy Systems

Utility-size turbines have enjoyed federal incentives for a decade or more, while small wind systems have been largely ignored since 1985. The Emergency Economic Stabilization Act of 2008, H.R. 1424, designed for the financial institutions, also helped stabilize the small wind systems for the next eight years. The new federal-level investment tax credit will help consumers purchase small wind turbines for home, farm or business use.

Starting now, a tax credit of 30 percent (not to exceed $4,000) is available for new owners of small wind systems. Defined as units of 100 kilowatts (kW) of capacity or less, these small wind turbines have long been sought by homeowners as a way to reduce their energy bills. The tax credit for turbines designed for home use is limited to the lesser of $4,000 or $1,000 per kW of capacity.

The renewable energy legislation also contained a one-year extension of the current Production Tax Credit (PTC) provisions for utility-scale units, and a five-year credit extension for residential and commercial solar PV installations. To learn more about small wind systems and renewable energy, visit www.nrel.gov or www.windustry.org.

Contact: Martin Kleinschmit, martink@cfra.org or 402.254.6893 with questions.

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