Tax Credits Still Available for 'Maturing' Renewables

With fuel prices headed higher and higher, suddenly thinking green may be as much about what's in your wallet as what's in the environment.

A booming renewable energy industry in Maryland and the continuing availability for some tax credits mean that Earth Day might be a time to look into changing how you plug in.

Though grants and tax incentives aren't what they were in years past, there are still plenty of incentives to help you along on the county, state and federal level.

The federal credit is worth 30 percent of the installation's total cost.

On the state level, Maryland offers a sales tax exemption for renewable energy equipment and an income tax credit for clean energy production and grants for installations.

The state's credits, administered by the Maryland Energy Administration, are limited—only $25 million in credits can be claimed between 2006 and 2016, and you can only claim the credit for up to five years.

In Baltimore County, if your home is LEED-certified, you could be eligible for three years of credits for 40 to 100 percent off your property tax bill. The LEED guidelines, set by the U.S. Green Building Council, include proximity to transit, runoff management and building practices. Additionally, homeowners can be eligible for a property tax credit based on the cost of installing renewable energy equipment.

No data was immediately available on how many have taken advantage of the county credit since it was enacted in 2010.

Maryland is a hotbed for renewable energy companies. Paul Wittemann, president of Timonium-based solar firm Greenspring Energy, said that foreign competition and efficiency have driven prices down in the last several years.

"Now it's a more mature industry, and it is truly a good time because ... the prices come down and now stabilized," Wittemann said.

Though tax credits are "10 to 20 percent" of what they were several years ago, Wittemann said today's solar panels give buyers much more bang for their buck.

"In 2007, we would be selling 165- and 175-watt panels," he said. "Today in the same square footage we can sell a panel thats 260, even 300 watts. So the efficiency and kilowatt-hours a typical solar panel produces has increased a lot as well."

Other Maryland firms in the renewable energy business include Solar Gaines in Cockeysville, Astrum Solar in Annapolis, Solar Energy Services in Millersville and Clean Currents in Rockville.

Though price will vary depending on what sort of energy use you're looking for, Wittemann said an average home solar installation will cost $15,000 to $20,000. Alternately, you can lease the panels over a span of about 20 years or buy renewable energy credits from a firm like Clean Currents.