State governments are taking an increasingly active role in providing financial incentives for energy-efficient home and building improvements. These efforts help to protect the environment while providing financial assistance to citizens. The American Recovery and Reinvestment Act of 2009 (ARRA) may help to bolster funding for these initiatives, making now an ideal time to upgrade to new appliances, heating and cooling equipment, and even install renewable systems, like solar panels.
State governments often work with utility companies to roll out and manage rebate programs. For instance, the California Solar Initiative, a 10-year old initiative managed by the California Public Utilities Commission, has partnered with the major utilities serving California to offer rebates to homeowners who install photovoltaic systems on their existing home.
Photovoltaic systems are solar panels that convert sunshine into electricity. The rebates to homeowners are paid in one of two ways. The first is with a one-time rebate based on how many watts the solar panels can generate. The second is a performance-based rebate where the homeowner receives monthly checks based on the actual amount of electricity their system generates.
For new home construction, the California Energy Commission's New Solar Homes Partnership (NSHP) provides financial incentives to home builders, encouraging the construction of new, energy efficient solar homes. In addition, independent contractors and installers of solar equipment can also qualify for incentives for installing and promoting solar energy.
