For those who want to go “green” without it costing extra or those who are tired of getting less than 2% investment interest on your money, solar voltaic panels are for you.

The reason that solar panels which produce energy are now financially viable is due to government incentives. First, one can take an investment tax credit of 30% of the cost of the solar system off their tax liability. This is a tax credit which is taken off the tax bill after the taxes are calculated. The cost of smaller systems starts out at less than $20,000 while a larger system may cost just over $40,000.

Next, the State of Ohio will grant the installer between $6,000 and $15,000, depending on the size of the system. For smaller systems this makes up 33% of the cost but for larger systems can account for 40% of the cost. This grant is available to systems above 2 kW and only to customers of American Electric Power, Dayton Power and Light, Duke Energy or FirstEnergy Companies or subsidiaries, but not to customers of municipal or cooperative electric providers.

With the state and federal assistance combined, the remaining cost to be covered by the consumer is 37% the cost for smaller systems and 30% of the cost for larger systems.

Another more complicated government incentive for solar voltaic panels are the “Solar Renewable Energy Credits”. In short, the above named utilities are required to get a portion of their electricity from solar. The utilities can produce it themselves or buy solar from customers who install solar voltaic panels on their home. The long and short is that those who install panels on their home can sell the solar renewable energy credits on the market.

The credits for each of the next 5 years are expected to be worth about $3,000 each year for a smaller system, or $6,000 per year for a larger system. During the following 5 years it is expected the value of these credits will be cut in half. None the less, these credits can reduce the expense of solar panels 16 to 18% in the first five years then another 8 to 9% the next five years. That leaves 13% of the original expense not paid for the smaller system but only 3% not paid for larger systems.

However, an additional benefit remains. The consumer's electric bill is reduced because the consumer is no longer buying most of their electricity, and the meter runs backwards when excess electricity is produced. This reduced electric bill further reduces the expense paid over the years, approaching 2% per year.

When all incentives and benefits are tallied, it will take 6 years for larger systems to be paid off but 9 years for smaller systems. However, after the system pays itself off, the electric bill for many homeowners can be as low as $5 per month, with a system life expectancy of 15 years after being paid off.

Two Athens companies will work with property owners to install panels and do the government paperwork. They are Dovetail at www.dovetailsolar.com and Third Sun Solar and Wind Power at www.third-sun.com