Credits, Rebates & FIT's Have PV Systems Making 'Cents'
Before local utilities, DTE and Consumer Energy launched their respective ‘Feed In Tarrif’ programs in August 2009, the PV market had been flooded by manufacturers, who were anticipating an increased demand for their systems when the government offered a 30% uncapped Federal Income Tax Credit for the purchase of PV systems. So, when DTE’s Solar Currents program and Consumer Energy’s Experimental Advanced Renewables Program (EARP) launched in the late summer, purchasing and installing PV systems really began to make financial sense for many people.
We have witnessed three price adjustments from our PV suppliers throughout the course of this year. Each adjustment has reduced the cost of the systems, making it possible for the consumer to purchase during hard economic times.
The utilities’ FIT programs reward qualifying consumers with a twelve year contract to purchase the electricity generated from PV systems at $.65/KwHr. This rate is roughly six time greater than the $.11/KwHr rate at which they sell to the consumer.
The sweet spot may be achieved when one combines the 30% Federal Income Tax Rebate with one of the utilities ‘Feed In Tarrif’ programs and a market flooded with PV systems priced to sell. If have been thinking about purchasing a PV system the combined forces at play may just arrive at your desired purchase price!