Top Government Rebates for Home Solar
Do you want to install solar panels? Are you looking for government rebates to support your installation? If yes, you are in the right place. Solar panel installation is now more affordable than ever. However, you can make it even less expensive if you consider rebates offered by the government. Solar panel installations can save you a lot by lowering your energy consumption. You can install solar panels and use renewable solar power to meet your energy needs. If you want a cost-effective solution, you can utilize rebates and incentives provided by federal and state governments. These rebates include tax benefits, solar panel installation rebates, and performance-based incentives. You can consider a suitable one to reduce the installation cost by up to fifty percent.
GOVERNMENT REBATES & INCENTIVES
Both state and federal governments offer rebates and incentives. Currently, many states offer rebates on solar panel installations. There are different types of rebates and incentives, and you will have to inquire about the available options in your state. When most incentives are accessible for all installations, rebates will have some limitations. Know the differences between rebates and incentives. Use all possible benefits to reduce the installation costs significantly. Here are some rebates and incentives you can consider while installing solar panels.
Some utility companies, states, and municipalities provide up-front rebates to install a solar panel. However, these rebates are available for a specific time, and you cannot use them once they meet the target. They offer rebates for some installations, and the given rebates will disappear after fulfilling the objective and installing the specified number. You can inquire about the available rebates in your state and use them to reduce the installation costs. These rebates can reduce the cost by up to twenty percent, and you can avail of them without specific requirements.
Solar Renewable Energy Certificates or SRECs can also reduce the cost of installation. Some states follow renewable portfolio standards. They require utilities to generate a specified amount of electricity from renewable sources such as solar energy. It is worth mentioning that you cannot expect this benefit in all the states. However, if your state follows this standard, your solar panel can create SRECs for the electricity amount generated by the solar panel systems. Utilities will buy the SREC to meet the renewable energy requirements of your state. You can sell your SRECs and make hundred or even thousands of dollars every year based on the SREC market in your state.
INVESTMENT TAX CREDIT
The ITC or federal investment tax credit can enable you to install solar panels without hurting your budget. The ITC will give back twenty-six percent of your tax paid on the solar. The amount can come back as a refund that you might not expect from tax deductions.
STATE TAX CREDITS
All the states do not offer additional tax credits for solar panel installations. But some states, including Arizona, Colorado, Florida, and New Mexico, offer such benefits. If you live in any of these states, you will find solar panel installations more affordable. The state tax credit will work as a federal ITC. But the amount will vary based on your state. When you pair federal ITC with a state tax credit, you can expect more benefits and find the installation super affordable.
PBIs or Performance-Based Incentives support solar panel installation costs. PBI will pay per kilowatt-hour credit for the generated electricity of your system. You will find a few differences between SRECs and PBIs. When PBI pays for the generated electricity, SRECs are about the environmental attributes of renewable sources. Also, you do not need to sell PBIs through the market that you need to do while using SRECs. The PBI will follow the net metering policies.
These are rebates and incentives you can consider to reduce solar installation costs. However, some states will have specific rebates for home solar panel installation. Here are the offered rebates and incentives.
REBATES AND INCENTIVES OFFERED BY STATES
Arizona: The Residential Arizona solar tax credit will reimburse twenty-five percent of solar panel installation by up to $1000.
California: California offers incentives on solar panel installations. You can get bill credits for extra solar power from your utility.
Colorado: The people in Colorado will not pay tax for solar systems purchases. Also, you will not have to pay additional taxes if the value of your property increases due to solar installation.
Connecticut: Connecticut offers rebates on solar panel installations. On top of that, it provides a loan to make it possible for most homeowners to install solar panels. If you meet the eligibility criteria, you can get a loan of up to $40,000 with an interest rate between four to seven percent. The loan duration will be between five and twelve years.
Florida: If you live in Florida, you will not have to pay additional taxes on solar panel installation. All the credit goes to its Property Tax Exclusion for Renewable Energy Property.
Illinois: You can earn through SREC in Illinois for each MWh of electricity generated by your solar system over fifteen years.
Massachusetts: You can get fifteen percent coverage of your system cost with a $1000 credit amount under the Massachusetts renewable income offer.
New Hampshire: This state will exempt property taxes on the value a solar panel adds to your home.
New Mexico: New Mexico offers a solar tax credit to reduce tax payments of the state up to $6,000. Otherwise, it can be ten percent of your solar energy expenses.
Nevada: Nevada solar panel access laws protect the rights to install solar panels and generate electricity from them.
New York: The Megawatt Block Incentives of New York offers an up-front $/W rebate to residential and commercial solar panel systems.
South Carolina: South Carolina offers a state tax credit to enable homeowners to claim twenty-five percent of their installation costs as the tax credit.
Washington D.C.: Washington D.C. has a solar advantage plus program. It is a first-come and first-serve rebate program that covers the total installation cost of a 3kW to 4kW system.