While installations of solar electric systems by businesses and homeowners continue to grow -- thanks in part to a tax credit from Uncle Sam -- some homeowners are giving new meaning to the phrase “solar power.”
They’ve won in- and out-of-court battles against homeowners’ associations that tried to prevent them from installing solar electric and solar water heating units on their rooftops. In Palos Verdes, Calif., a homeowner prevailed in court, and in Dallas, an association threw in the towel rather than incur court costs.
But the issue is far from settled. Tiffs between homeowners and associations over solar installations are cropping up in other states, too.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In a few states -- California, Delaware, Maine, Maryland, North Carolina, Vermont and Virginia -- homeowners are getting a hand from state lawmakers courtesy of new laws limiting the ability of associations to issue blanket denials of homeowners’ requests to install rooftop solar electric and water heating systems.
Associations still have leeway to determine whether any installation, including TV satellite dishes and rooftop plantings, could cause roof damage, a big concern for condominiums that are legally responsible for maintaining the integrity of buildings.
Another worry: fire danger from rooftop solar installations. Look for Underwriters Laboratories -- a product safety certification group -- to issue a standard within a year or so that will require installation of devices that sense any controller malfunctions and immediately turn off all power flowing into a building should a malfunction occur.
Local building codes will also be amended, requiring switches that’ll cut power flowing from solar panels in an emergency. In a handful of incidents in California, firefighters were impeded in putting out home fires because of solar modules that couldn’t be easily turned off.
So far, federal legislative efforts to strengthen homeowners’ rights to install solar electricity and water heating systems have gone nowhere. But it’s a good bet that broad new energy legislation likely to be considered by Congress within the next several months will bolster such installations.
A new energy bill will also probably require electric utilities to purchase a percentage of their power from renewables, including rooftop electricity sold directly to power companies. The best bet is for that percentage to be 5% within a few years of enactment, rising to 20% a decade or so afterward.
Meanwhile, the 30% federal tax credit for solar electric systems will keep stoking installations. The 30% credit, which runs through Dec. 31, 2016, applies to any amount spent on an installation; there’s no dollar cap. For an installation costing, say $30,000, the credit would reduce the expense by $9,000. Moreover, homeowners can typically save 25% to 50% on their monthly electricity bills once such systems are up and operating.
Electric utilities from New Jersey to California are also arranging low interest, long-term loans to help consumers and small businesses buy solar electricity units in order to slow the growth of power usage and to delay or eliminate the need to build costly new generating stations.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
What to expect from the global economy in 2026The Kiplinger Letter Economic growth across the globe will be highly uneven, with some major economies accelerating while others hit the brakes.
-
The AI Boom Will Lift IT Spending Next YearThe Kiplinger Letter 2026 will be one of strongest years for the IT industry since the PC boom and early days of the Web in the mid-1990s.
-
Amid Mounting Uncertainty: Five Forecasts About AIThe Kiplinger Letter With the risk of overspending on AI data centers hotly debated, here are some forecasts about AI that we can make with some confidence.
-
Worried About an AI Bubble? Here’s What You Need to KnowThe Kiplinger Letter Though AI is a transformative technology, it’s worth paying attention to the rising economic and financial risks. Here’s some guidance to navigate AI’s future.
-
Will AI Videos Disrupt Social Media?The Kiplinger Letter With the introduction of OpenAI’s new AI social media app, Sora, the internet is about to be flooded with startling AI-generated videos.
-
What Services Are Open During the Government Shutdown?The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
