Are the costs coming down faster than the incentive money is running out?
Incentives in many locations, such as California, have declined as the cost of equipment has come down. The reductions in incentives and in equipment costs have been roughly parallel, as intended. However, in the past, the federal tax credit for homeowners was capped at $2,000. The elimination of that cap, and the use by utilities of tiered electricity rates, have helped spur larger-capacity residential solar PV installations. Many customers are now seeking to cover nearly all of their annual electricity costs with photovoltaics. In the second half of 2009, equipment prices and system costs have dropped markedly in the United States, but in many places incentives also are structured to continue to decline. It may not pay to wait if a utility customer is seriously considering solar. Can you say something in dollars and cents? The California Solar Initiative provides current cost estimates that range from about $7.50 to $10 per watt, before the federal tax credit and any state and local
