Tax Incentives for Solar Energy
Cut back on utility costs and reduce your carbon footprint by installing solar panels on your home. Plus, with tax incentives at the state and federal level, solar energy is a smart investment for homeowners.
Solar Panel Incentives
How Choosing Solar Energy Can Save You Money
When it comes to solar energy, the financial benefits are hard to ignore. State and federal governments recognize the environmental and economic values of solar energy, and they offer solar tax incentives to encourage homeowners to make the switch.
If you're considering solar energy for your home, you should know what tax benefits are available to you, including:
Federal Tax Credits
The federal solar energy credit allows homeowners to claim up to 30% of the total cost of installing a solar energy system on their property between 2022 and 2032 as a credit against their federal income taxes. If you enroll in a leasing program, you will not be eligible for these credits. Ownership is the best way to benefit!
State Tax Deductions or Rebates
Depending on where you live, you may be eligible for additional credits, deductions, or rebates for installing solar panels on your home. In most cases, these state-based benefits do not reduce any tax credits at the federal level, so you can stand to benefit even more.
Solar Renewable Energy Credits (SRECs)
Issued at the state level, SRECs are certificates that are issued to homeowners who generate renewable energy through solar power. For every MWh of electricity you generate through your solar panels, you’ll earn 1 SREC, which you can sell to utility companies, either directly or through a broker. Selling back your SRECs can regularly put extra money in your pocket with minimal effort on your part!
Other Economic Benefits of Solar Energy
Even beyond the tax incentives available, there are many other financial benefits of switching to solar energy, saving you money over time.
01
More Control Over Utility Bills
Solar energy can give homeowners more control over their utility bills by reducing or even eliminating their reliance on monopolized utility companies. This can result in significant savings month over month, especially as utility rates continue to rise.
02
Net Metering Opportunities
Net metering is a program that allows homeowners to earn credits for excess solar energy they produce and feed back into the grid. These credits can be used to offset future energy bills, providing even more savings and potentially even earning money back from a traditional utility company.
03
Independent Energy Source During Emergencies
When your power goes out, you won’t have to worry about being left in the dark! During power outages and other emergencies, solar panels can provide a reliable and independent source of energy when a battery system is installed with your system. This can be particularly beneficial for homeowners who rely on medical equipment or have other special needs that require uninterrupted power.
Looking for Solar Energy Financing Information?
The cost of solar energy systems is offset by savings on utilities, energy independence, and tax incentives, but you can also find financing options to help homeowners cover the initial installation costs.