ASHRAE Journal - February 2009 - (Page 13) Brighter Skies for Solar WASHINGTON—Solar panel prices are and slowdown in bank lending has slowed falling now that manufacturers’ supply construction, further decreasing demand. exceeds demand, reversing a longtime A decline in the cost of installation, trend. including labor and the mounting system “We’re seeing a big change in the for the panels, also accounts for part of dynamics of the market,” the price drop. said Nathaniel Bullard, an Bullard added that deanalyst at the research firm mand remains decent in the New Energy Finance. U.S., where a renewed 30% The cost of rooftop solar tax credit and removal of a panels decreased 8% to $2,000 cap makes the cost 10% in late 2008 and is of installing a residential expected to drop another rooftop solar panel system 15% to 20% in 2009, aclower than previous years. cording to New Energy Panels at ASHRAE HQ. In California, which Finance. accounts for nearly 70% Bullard attributes the price shift to of the U.S. solar market, a typical 4 kW, a decrease in demand for the panels $32,000 solar energy system cost a homein European countries such as Spain, owner about $23,000 last year after state where solar energy subsidies offered and federal incentives. This year, if prices by the government have been trimmed, sink as expected, that system is likely to Bullard said. cost $10,000 to $12,000, according to a In addition, the global economic decline USA Today article. New Solar Tax Credits Provisions of the federal solar tax credits approved in October as part of the Emergency Economic Stabilization Act of 2008 include: • An eight-year extension of the 30% tax credit for both commercial and residential solar installations; • An elimination of the prohibition on utilities from benefiting from the credit; • An allowance for alternative minimum tax (AMT) filers, both businesses and individuals, to take the credit; • An authorization of $800 million for clean energy bonds for renewable energy generating facilities, including solar; and • An elimination of the $2,000 monetary cap for residential solar electric installations, creating a true 30% tax credit (effective for property placed in service after Dec. 31, 2008). Source: solarintegrated.com February 2009 www.info.hotims.com/23932-21 ASHRAE Journal 13 http://www.solarintegrated.com http://www.sanuvox.com http://www.sanuvox.com http://www.info.hotims.com/23932-21
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