Let me be the first to proclaim “HAPPY NEW YEAR!”  And good riddance to 2008!

Of course, not all of 2008 was doom and gloom.  One of the bright spots is congress extended (to 2016) and improved the federal tax rebates for renewable energy systems.  As of January 1st, the federal tax rebate is 30% of the installed cost, no cap on photovoltaic and a $2,000.00 cap on thermal (SDHW) systems.  This is on top of any state rebates or incentives available.

Solar panels on house roof (they should all look like that)

The incentives are necessary to make renewable energy, specifically solar, more competitive with traditional energy systems like fossil fuels and nuclear generated electricity.  This is because the companies that supply oil, coal, natural gas and nuclear power get large subsides from the federal government to reduce their costs and keep the energy supply “cheap.”  These subsides are supposed to be used for the discovery and development of new oil and natural gas fields.  They are largely responsible for the Alaskan pipe line and the North Slope/Prudhoe Bay area.  Most geologists agree that the likelihood of finding any more large oil deposits are slim at best.

As we have all found out, oil prices can be quite volatile, I would call last summer’s gas prices anything but cheap.   Last week’s retaining pond accident in Tennessee will not be cheap either.  Nor will the storage of all the spent nuclear power plant fuel in Yucca Mountain be cheap.   One might say that “cheap” is a relative term.

I don’t like incentives or subsides.  I hate living in a controlled environment where I am not sure who is pulling the strings or why.  If it were up to me, we would have no susides or incentives any energy system.  This is the European model and it seems to work well.

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