A record number of solar panels were installed in 2008, making it a hot year for renewable energy, even in the face of financial adversity for the Golden State. Powered by state rebates, residents and businesses alike increased the number of megawatts installed by double from the year before. But it is the residential customers who showed the most significant increase, as December 2008 saw the largest volume of homeowner rebate requests since the onset of the California Solar Initiative program two years ago.
The program is funded by utility ratepayers and offers rebates for those who install solar panels at their homes and/or businesses. A typical refund ranges from 20% to 50% of the solar energy system's cost. It would seem that a solar program is a luxury in this economic climate, but experts in the field are saying that new federal tax breaks in cooperation with a generous state-level incentive are pushing Californians to take that leap of faith. As of January 1, homeowners have been eligible for tax credits of up to 30% of the entire project budget. Before that date, there was a benefit cap at $2000 per system. Perhaps that with these tax and rebate incentives, talk of the benefits of "green power," and an overall shift in financial awareness, people are finding solar panels a safer bet than investing in stocks!