Government Funding & Solar Power

Renewable sources of energy are becoming more popular nowadays because of the global warming issue. In many countries, there have been grants to fund the installation of solar power systems at home. It is not unusual for a number of government agencies to allocate just a limited amount each year for the power system, but in this age, they are now reviewing the allocation of budgets for the use of renewable energy sources. Incentives are provided but governments all around the world still need to embrace subsidizing the renewable energy market because they believe that the grants could distort it and may affect the development of the energy industry.

There are three remarkable countries that are channeling full attention to the renewable energy sources.

Canada

This developed country is giving emphasis on energy conservation and efficiency to meet several objectives. Majority of the financial incentives are channeled to water heating and solar space in industrial developments although financial assistance is also available for solar hot water systems at homes. Property owners of existing homes can avail of federal grants by leveling up the energy efficiency of their houses and reducing their environmental impact. On the other hand, new homes must match the R-2000 standard set by the government for higher energy efficiency.

United Kingdom

In the early part of 2007, the existing grant scheme was ended and a revision of the Low Carbon Buildings grant program was introduced for householders. Before a homeowner can apply for the grant, the homeowner must undergo through several energy efficiency evaluation to make sure that he or she is minimizing the energy requirements. The maximum grant is £2,500 (solar photovoltaic system) and £400 (solar thermal hot water system). Other technologies may be installed by the owner in the same property but the maximum grant is fixed at £2,500.

United States of America

This country has a combination of state, federal, local and utility grants and incentives for the solar power systems for homes. The incentives are available for different home energy efficiency savings as well.

• State and local - Several schemes are offered, and homeowners are recommended to go to the Database of State Incentives for Renewables and Efficiency (DSIRE) to gain access on the these incentives.
• Federal – In 2008, the Federal government provided a tax credit of up to two thousand dollars for installing solar power systems. This covered the use of photovoltaics, fuel cells, solar water heating and other solar technologies.