Are there tax incentives for building passive solar houses?

Passive Solar Design Basics

Passive solar design is a fundamental principle of building a solar-powered home. It involves designing the house to maximize the use of natural sunlight and heat during the winter months, while minimizing heat gain during the summer. A south-facing glazing, typically in the form of large windows, is a key component of passive solar design. This allows sunlight to enter the home and warm it during the winter, while shading devices, such as overhangs, are used to block direct sunlight during the summer.

Tax Incentives for Passive Solar Design

Homeowners who incorporate passive solar design into their homes may be eligible for various tax incentives. The Residential Renewable Energy Tax Credit, also known as the Solar Investment Tax Credit (ITC), provides a tax credit of up to 30% of the total cost of the project, including the cost of materials and labor. This can result in significant savings for homeowners who invest in passive solar design. For example, if a homeowner spends $50,000 on a passive solar home, they may be eligible for a tax credit of up to $15,000.

Energy Efficiency Mortgage Program

In addition to the Residential Renewable Energy Tax Credit, homeowners who incorporate passive solar design into their homes may also be eligible for the Energy Efficient Mortgage (EEM) program. This program allows homeowners to finance energy-efficient features, including passive solar design, as part of their mortgage. This can result in significant savings for homeowners over the life of the mortgage. For example, a homeowner who finances a $200,000 mortgage with an EEM may be able to save $200 per month on their energy bills, resulting in a total savings of $144,000 over the life of the mortgage.