How much does a Solar Heating System Cost?

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There are a lot of factors that can affect the cost of a solar heating system. Besides the variety of sizes, there is a wide range of systems to choose from, depending on the needs of the building owners and the climate of the given location. Moreover, if there is a lack of clarity regarding federal tax laws, price variations for solar heating systems can vary considerably. For example, a simple solar air heater that is installed in a room for extra heat generation may cause about $1,500, but a solar retrofit that is passive may run the cost up to a five figure amount. There are various types of solar heating systems, such as active versus passive and radiant versus forced. These different types are under the jurisdiction of the law with regard to their rebate and financing eligibility. One of the unfortunate aspects of the Congress’s passing of legislature on solar systems - which extended the federal tax credits through to 2016 - is that solar heating systems were not specifically included in their list of solar systems that are eligible for the 30 percent federal tax credit. (The exact words in the legislature on solar systems were, “original solar water heating” and “other solar electric technology.”) 

Still, some purchasers of solar heating systems have installed several units on their premises since the federal tax credit incentive was put into effect, and they continue to push for inclusion in the tax credit program. Discussions and debates as to whether these installations will satisfy the criteria of the tax credit incentive are on-going. Homeowners and tax attorneys remain at odds with regard to this issue.

If you are unsure whether the federal tax credit applies to the type of solar heating system you want or have already installed, it may be a matter of interpreting the law according to your understanding. Solar energy heating is indeed strongly encouraged by the law, and hence the tax credit incentive for encouraging more home and business owners to make use of this technology. Perhaps it is the other phrase in the legislation, “other solar electric technology,” that confirms the lawmakers’ foresight of new and improved solar systems, which may not be listed specifically but allows for a wider coverage of emerging solar technology.

 But the problem remains that there is a substantial vagueness in the interpretation of the law. For instance, take a solar air heater with a small fan powered by PV panels. Is the entire piece considered a “other solar electric technology” component, or is it just the PV panels that fall within that boundary? Can the small fan that is being powered by PV panels be included? Which component(s) of the system can fall under the tax credit incentive? In reality, no one really agrees on a standard yet.

While some homeowners take it on faith that they will be covered and o forward with their plans, others are conscience-driven without the specifics and hesitate to carry on with their solar system installations until they are sure that they are covered