Government Incentives

Wind turbines are becoming an ever more popular source for creating clean energy. In 2004, wind energy in California produced over 4,000 million kilowatt-hours of electricity which is about 1.5 percent of the states total electricity. Wind turbines come in a plethora of sizes and can be used on a large scale in such cases as a wind farm, smaller turbines can also be used by farms, homes, and business to help provide clean reliable energy.

Tax incentives and rebate programs are available for people investing in renewable and alternative energy programs and systems such as wind turbine energy. These incentives are intended to lower initial investment costs of obtaining and ultimately installing renewable energy systems. Tax incentives reward investors in renewable energy sources by providing tax credits and deductions.

Eligibility Requirements: California State Rebate Program

• Systems must be new, and in compliance with safety standards.
• Wind systems must be covered by a 5 year minimum warranty.
• Installation must comply with all federal, state, and local codes.
• Systems must be grid connected and installed by a California-licensed contractor.
• Minimum 30 kW system required for wind turbine systems.

California Rebate Program:

• Incentive amount: $1.50/Watt (W)
• The first 1 MW receives 100% of the incentive rate.
• The next capacity increment above 1 MW up to 2 MW receives 50% of the incentive rate.
• The last capacity increment above 2 MW up To 3 MW receives 25% of the incentive rate.
• Incentive payments are capped at 3 MW.

Federal Tax Credit:

The federal government encourages renewable energy sources through tax incentives.

• 1.5 cent per kilowatt hour tax credit provided by the federal government.