Unless federal tax credits for SHW systems are extended, this may be the last year you can take advantage of Uncle Sam by installing a solar hot water system. Under the existing federal tax credit law, owners of new SHW installations are eligible for a tax credit of up to $2,000. But when it comes to what kind of certification is required to receive a break from the Feds, the waters are muddy. The law states that “the property” of residential solar water heaters must be certified by the SRCC, but it’s unclear whether this refers to the collector or the whole system.
While we aren’t aware of anyone being denied the federal tax credit from basing their claim on the OG-100 standard, some states and utility districts are requiring OG-300 ratings to be eligible for their incentives, including Arizona; California—Sacramento Municipal Utility District and City of Thousand Oaks; Colorado; Illinois; Nevada—Public Utilities Commission; and Oregon—Eugene Water and Electric Board and the City of Ashland.