Over the past decade, the installation of home solar power systems has increased by an astonishing 1600% and a good portion of that is due to the increase in available incentives that help American homeowners drop dirty energy and add clean, green, solar power to their homes.
Solar Incentives can help homeowners slash up To 50% off their home solar installations.
But what are solar incentives and how do you know which ones you’re eligible for?
Depending on where you live, you could be eligible for federal, state, local, and even individual company incentives that could drop your home solar power installation costs to rock bottom prices and many homeowners can get started with $0.00 down!
The easiest way to find out exactly which solar incentives are available in your area is to use Solar Analyzer’s instant online analysis tool.
But what are solar incentives and what do they mean to you?
There are 3 Major solar incentives available to the broad market for solar power buyers (and many more supplemental incentives available on the local level). These 3 major incentives are:
- The Federal Solar Tax Credit (ITC)
- Net Metering
- And Solar Renewable Energy Certificates (SREC’s)
Below is a brief overview of what these major solar incentives mean for your home solar array.
Federal Solar Tax Credit:
A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner.
Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.
This tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. This tax credit is equal to 30 percent of the basis that is invested in eligible property which has commenced construction through 2019.
Please be advised that the federal solar tax credit is set to expire soon.
If adding solar power to your home is something you’re considering, I urge you to take action sooner rather than later. There is no current extension planned for this incentive.
Net metering is an amazing incentive that allows homeowners to take back control of their electric bills. It’s a program that allows you to “sell” the electricity that you produce back to the power company when you produce more than you use.
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a PV system on the home’s rooftop, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backward to provide a credit against what electricity is consumed at night or other periods where the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use. On average, only 20-40% of a solar energy system’s output ever goes into the grid.
If you live in certain areas you may even be eligible to receive a monthly check from your electric company each month for the excess electricity you “sell” back to them.
In addition to reducing your costs, net metering is an effective way to reduce the load on an aging energy infrastructure that is already prone to breakdowns and blackouts. Please note that not all areas offer net metering
Solar Renewable Energy Certificates (SREC’s)
The details behind SREC solar incentives are a bit more technical but beneficial nonetheless (if you’re eligible for them)
An SREC is a solar incentive in certain states that are required to produce a defined number of their electric power directly from solar. Each MegaWatt Hour (MWh) that a customer produces from their solar array is turned into an SREC that the customer can then sell back to the electric company so that the electric company can meet their quota for solar energy production. It is important to remember that an SREC is separate from the electricity the customer produces. This means that if you live in an Area that utilizes SREC’s you can “double dip” on the deals. You cut your electricity usage to a fraction of what it was ( sometimes down to $0.00 per month) And every MWh you produce will grant you an SREC that you can sell back to the electric company for a set price to get cash in hand.
SREC’s are only available in certain areas.
Additional Solar Incentives:
In addition to the big 3 solar incentives listed above, there are hundreds of additional incentives available at the state and local level (and even some incentives that come directly from your electric supplier).
These incentives range from:
- 100% sales tax exemption on Solar Power Arrays
- Rebates up to a certain dollar amount per watt of solar power
- A 25% tax credit from the state ( these most often work in conjunction with the Federal Solar Tax Credit)
- Loans and financing specifically for solar power installations with incredibly low-interest rates
- An exemption on property taxes for the first 5 years
- An Exemption equal to 100% of the appraised value of the solar power system
- An Additional $500.00 tax credit on your solar array
This is just a small sampling of the literally hundreds of incentives available.
To find out exactly what you qualify for simply click here to use Solar Analyzer’s instant online analysis.
You can see exactly which solar incentives you are eligible for and how much solar will save you, in as little as 90 seconds.
Here’s how you get started:
1 – Fill out the questionnaire at Solar Analyzer
2 – If your analysis shows you saving money, then schedule your home inspection.
3 – Purchase your Solar system and start saving