According to solar industry statistics, the price of solar panels has dropped by over 70% in the last ten years. It’s still an expensive investment, that’s out of reach for most homeowners, though.
That’s why the federal government, state authorities, and power companies have set up residential solar power incentives to help sweeten the deal.
Are you interested in installing solar power, but wary of the costs? Find out more about these solar power incentives before you make up your mind.
The Federal ITC
These long-standing incentives for residential solar energy allow you to deduct money from your annual tax return when you install solar power at home.
Currently, you can deduct 26% of the cost of your solar installation from your taxes if you install them during 2022. That includes PV panels, labor, assembly, and installation costs as well as related wiring and piping.
This generous deduction means you could pay as much as $9,000 on your solar installation.
The federal tax incentive decreases to 22% in 2023 and disappears in 2024.
State Solar Power Incentives
Each state and municipality may set up incentives for solar power installations as they see fit, so they vary widely from place to place. Some of the more common savings offered include:
- Net metering policies
- Legislation promoting PPAs
- No sales tax on solar equipment
- SRECs that you can sell for cash
- State tax credits
- Reduced interest on solar loans
Many states also offer an exemption on property tax escalations if your home’s value increases due to installing solar power.
Other Solar Energy Incentives
Some power companies offer incentives and rebates for existing clients who install renewable energy. That means they’ll refund you a percentage of the total cost of your solar equipment.
Remember, you must apply for most of these rebates and incentives for solar energy, so make sure you’re eligible before calculating your budget for going solar.
When you opt for a PPA, you won’t pay for the installation of your panels, but you will pay a reduced rate for electricity as long as they’re supplying electricity to the power company’s grid.
Some of these agreements give you the option to buy back the panels or take ownership of them after a few years.
Net metering works similarly, except you pay for the installation, and you can use the electricity generated by your panels whenever you want to.
Your solar panel installer can guide you on the best ways to save money when you go solar. You can also download this solar panel information guide for more about the savings associated with solar power.
Solar Power Adds Value to Your Life
Thanks to solar power incentives, you could soon embrace the benefits of solar power, too.
When you install a solar power system, you’ll save money on your electricity bills, and help reduce the global warming that affects us all. You’ll also increase the value and appeal of your home if you decide to sell it.
Would you like to find out more about solar power and other ways to enhance your life? Browse our blog for more information about technology and other interesting topics.