Programs to encourage solar power purchases and installations are available from a variety of sources, and smart consumers do their research to determine who in their area provides cash incentives, tax credits, grant subsidies, federal grants, loans and production incentives. Depending upon the region, country and local conservation programs, you can realize up to a 70% reduction in the cost of a solar powered system.

The first place to check is with your local power company. Some incentives are available directly from utilities as part of their 'green cities' programs. Power companies also have access to information about other sources of funding and can often direct you to the solar outfitters who offer local discounts.

Tax credits are another way that businesses and homeowners can cut the cost of solar products and installation. The U.S. Treasury and Internal Revenue Service provide up to a 10% tax credit for "qualified energy efficient improvements" so be sure and check carefully to make sure the units you install meet the standards they outline. These improvements include a maximum credit of $2000 for investing in solar water heating that does not support a pool or hot tub. In addition, there is a 30% tax credit for taxpayers who install "qualified fuel cell power plants." This type of tax credit is limited to $500 per half kilowatt of capacity.

There are a host of federal, state and local grants available to subsidize your solar power system, some even offering up to $7000 cash to help you get up and running. Programs such the federal American Recovery and Reinvestment Act have developed lucrative programs to encourage residences and businesses to implement solar power.

Private corporations like Home Depot have developed foundations to award grants to non-profit entities that encourage green building practices. Also independent organizations like The Funders' Network for Smart Growth and Livable Community encourages solar development through philanthropic donations to agencies promoting sustainable alternative energy solutions.

To learn more about what subsidies, tax credits, grants and private incentives are available in your area, consult the Database of State Incentives for Renewable & Efficiency (DSIRE) at http://www.dsireusa.org/