Tax Savings and Energy Efficiency in Raleigh-Durham with Solar Assisted Air Conditioning & Heating
At Solar 72, we work with Raleigh-Durham homeowners to increase energy efficiency with solar thermal technology. Solar thermal heating & air conditioning can get you federal and state tax credits, too! In fact, it’s the only fully solar HVAC system that qualifies for a tax write-off.
We offer a solar thermal air conditioner. This system combines a high-efficiency, two-stage air conditioning system with a solar thermal collector panel, giving you the most energy-efficient completely solar air conditioning system possible.
You’ll save money as the solar thermal collector superheats the air conditioning system’s refrigerant, reducing the required workload. Ultimately, this lowers the overall power consumption of the system, making it more efficient.
Your solar assisted air conditioning and heat pump will give you peace of mind and reduce your energy bills — and you’ll have a state-of-the-art, environmentally-friendly HVAC system in your Raleigh, NC home. Solar thermal collectors have been in existence for 30+ years, making them very reliable — and they come with a 10-year parts and labor warranty.
Contact Solar 72 today at 919-439-8359 to get started saving energy and money.
My wife and I decided that the Solar HVAC system was a viable solution, cost-wise, after evaluating the tax implications of this clean energy solution. While the initial cost of the system is considerably higher than that of a comparable traditional system, the tax credits available to NC taxpayers are substantial. While residents of every state qualify for a 30% federal tax credit, residents of North Carolina also qualify for a even better 35% tax credit.
After tax credits are factored in, NC residents effectively pay 35% of the total system cost, bringing the system back in line with a traditional HVAC system. The federal portion of this tax credit (30%) is deducted from your federal tax liability in the tax year in which the system was installed. For the North Carolina portion, the tax credit is handled slightly differently. The limitation is that the State of North Carolina only allows up to 50% of your tax liability be credited per year, with any remainder being held over for subsequent years.
For the system we chose, the total installed cost was $27,485. The federal credit was 30% or $8,245.50. This was the amount our tax liability was reduced for that year. Since we did not plan ahead, we were having "normal" amounts deducted from our paychecks, which resulted in a larger federal tax refund. Had we planned the system install earlier in the year, we could have reduced the amount of federal tax withheld from our paychecks to increase our paychecks and reduce our end of year tax rebate. For us, the NC state credit was 35% of the $27,485 purchase price or $9,619.75. Our NC state tax liability for that year was $7,093, which meant that we could only apply up to 50% of the $7,093 tax liability, or $3,548. This also yielded a large state tax refund. We now have $9,619.75 minus the $3,548 credit already used or $6,072.75 left in carryover tax credit which can be applied this coming tax year and then the remainder used in the following tax year.
Bearing in mind that when we purchased, 72 Degrees did not have a financing option in place and that we had to front the installation cost, if we evaluate our total cost of ownership after tax credits, it is $9,620, which is very similar to the cost of a comparably equipped traditional system. For us, any reduction in our energy usage is pure benefit, as the cost of the system is effectively no higher than that of a traditional system. Over the period of May to January, year over year, we have seen first hand, a 30% reduction in our total electric energy usage. If the constant electricity usage (lights, refrigerator, TVs, appliances, etc) is removed from this and we simply look at the heating and cooling portion of our energy usage, it has been reduced by 62%!
In summary, the end total cost of this system is effectively very similar to that of a traditional system, with our true, final cost being realized after three tax returns. Obviously, the results and tax implications for each person would be different.
- Mike P.