The price of solar panels installation is not the heavy cost it once was. As the price of solar panels continues to fall, installation and use continue to rise. Last year alone, nearly 43% of new electricity added to the grid came from solar energy.
If you’re looking into going solar, continue reading for 6 of the top solar incentives this year to help save you money on installation costs.
Federal Tax Credit
The most well-known incentive for going solar is the federal tax credit. This credit provides a reduction against your federal income tax. The credit is equal to 26% of the total installation cost of solar panels for your home.
The best solar incentive out there, this credit directly offsets what you owe in taxes.
State Tax Credit
Depending on which state you reside in, state tax credits can be tacked onto the federal tax incentive. If a state doesn’t offer a tax credit, you may be eligible to receive a Solar Renewable Energy Credit which we’ll discuss below.
The sales tax exemption can reduce upfront costs, as well as provide a potential property tax exemption. If your home value increases due to the installation of solar, your taxes might look as if the panels weren’t installed in the first place.
In states like Indiana, you can visit https://blueravensolar.com/indiana/ to confirm what state and federal tax rebates you are eligible for.
Rebates are cash incentives that are subtracted from the upfront costs that come with solar installation.
These particular rebates are granted via utility companies or governments. In conjunction with tax credits, any rebate gets applied first. The tax credits are then calculated after any rebates have been applied.
Renewable Energy Credit
Rebates and tax credits offset the upfront costs of going green. Incentives, such as performance-based incentives, increase the cash flow from using solar electricity.
As mentioned above, one great program is the Solar Renewable Energy Credit system. This is a system that allows homeowners to sell back any electricity coming from their system. This happens in conjunction with state-level energy compliance.
In short, SRECS represents a potential cash bonus for those who own their solar system outright when utilities buy your credits.
Owners of those with a solar system can receive cash for each kilowatt-hour generated through their system. Otherwise, known as performance-based incentives.
This particular system differs slightly from SRECs in that SRECs focus more on rewards for a reduction in emissions. Performance-based incentives get rewarded based on the output of electricity itself.
Net energy metering is a similar program to performance-based incentives. It is a program that allows you to harness the electricity from your system to reduce your monthly bill.
A net meter essentially measures the output of electricity from your system and how much electricity you pull from the utility system. In cases of surplus energy generated by your system, you can receive credit.
Going Green With Solar Incentives
The cost of going solar is no longer the heavy financial burden it once was. In fact, with today’s solar incentives and solar rebates, solar panels can pay for themselves.
With all of the incentives available today, your wallet and the environment will both feel the positive effects of going solar. If you’re curious about additional ways to go green, be sure to check out more articles in the Life section.