Another challenge is the lack of qualified professionals. For instance, auxiliary components of a PV system are complicated and require the services of imported professionals. Also, repair and maintenance of these components is often difficult.
Similarly, the lack of knowledge of the technology is a significant factor hindering the adoption of PV systems. Besides, the insufficient operation and maintenance of the technology causes consumers to lose confidence. Furthermore, poor grid connectivity increases transportation and transmission losses.
There are a number of different federal tax incentives for solar energy adoption. These include the Investment Tax Credit (ITC), the residential energy efficient property credit and the geothermal energy property credit. They are all designed to reduce the cost of installing a solar system and may encourage the widespread use of renewable energies.
Another federal tax incentive, the Residential Energy Efficient Property Credit, was introduced in 2006. It is a non-refundable credit for installing energy-efficient heating and cooling equipment in a primary residence. To qualify, a solar facility must be located in a low-income community and be connected to a qualifying low income benefit project.
The residential energy efficient property credit is a tax incentive for the installation of energy-efficient systems such as solar panels and water heating systems. It is claimed on Form 5695. The tax credit is carried forward indefinitely to offset future federal tax liabilities.
The EV tax credit is based on the amount of kWh hours that can be reclaimed from the battery. The maximum credit is $7,500 for all-electric vehicles. It starts with a $2,500 base credit. A hybrid vehicle like the Mitsubishi Outlander has a maximum credit of $6,500.