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Making Solar Power Cheaper Through Net Metering

Solar power is a renewable energy source that$3,000. In short, the credit is much more
is extremely popular, but has a cost problem.powerful  than  a  mere  tax  deduction.
Net metering is a concept the government is
currently  using  to  offset  this  problem.Another area where financial incentives are
offered on solar is net metering. Net
Solar power works by converting sunlight intometering is simply the concept of selling
electricity. With the abundant amount ofenergy back to a utility company at the same
sunlight hitting the planet each and everyrate it sells it to you. This concept goes a
day, the potential of converting to solarlong way to making solar energy competitive.
power is massive. Ah, but there is oneHere's  how  it  works.
problem. Solar energy platforms are not very
efficient. Solar cells currently only convertAssume you buy a solar panel system for your
sunlight to energy at roughly 8 to 13 percenthome. Your high energy needs tend to happen
depending on the system. This lack ofearly in the morning and later in the
efficiency means you must buy large, bulky,afternoon. During the week, you have nominal
expensive solar panel systems to meet yourenergy needs during the day when you are at
energy needs. Much research is being done inwork. So, what happens to the energy being
the field of nanotechnology solar cells toproduced by the solar panels during the day?
improve this problem, but the answer is a fewWell, you can sell it back to the utility
years off. So, what can you do to deal withcompany. This is called being "on grid", with
the  cost  issue  today?the grid being the platform the utility uses
to deliver energy to communities. With net
The government tries to promote certainmetering, the energy produced by your panels
conduct in two ways. First it makes thingsis fed back into the grid. Your utility meter
illegal such as drug use. Second, it createsliterally spins backwards. You are selling
financial incentives and penalties to try toelectricity to the utility during the day. At
guide our conduct. Taxes on cigarettes, fornight, you draw energy off the grid. The end
instance, are high and try to motivate us notresult is you owe little or nothing to the
to smoke. Tax credits offered for theutility company at the end of the month. This
purchase of hybrid cars is an example ofwill save you a thousand dollars or so each
using  incentives  to  promote  an  activity.year.
When it comes to solar energy, the governmentNet metering is currently a state concept.
realizes that there is a cost problem. ItWhile over 40 states have laws on the books
tries to resolve this in a number of ways.requiring utilities to allow net metering,
The first is to offer tax credits for buyingthere is no federal standard. That may be
solar panel systems. Tax credits are aabout to change. Federal law now requires all
tremendous financial benefit. They work bystates to consider whether they wish to enact
reducing the tax you owe dollar for dollar.net metering legislation by 2008. Most are
For instance, you might figure out your taxesexpected to pass such laws. When this occurs,
for this year and find out you owe the IRSnet metering will be a cost cutting solution
$5,000. If you can claim a tax credit forto the solar power energy problem, making it
$2,000, you would end up owing the governmenta more viable energy source for you and me.



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