Solar energy provides positive impacts for the environment and cuts energy costs significantly. Although solar is about 90% cheaper than 10 years ago, to promote its continued growth, many states, counties, municipalities and utilities are providing solar tax breaks and financial incentives to make solar more affordable to homeowners.
State Solar incentives differ between states and utility providers. So, what incentives are you eligible for? Take a look at the top programs and rebates available in the U.S.
A solar tax credit, known as the investment tax credit (ITC), is offered by the federal government and allows homeowners and companies to subtract a portion of their solar costs from their taxes.
Several states offer additional tax credits to have a solar panel system installed. Similar to the federal ITC, you can deduct part of your solar panel system's expense from your State tax bill.
Your state, municipality, utility company, or other agencies that want to promote solar energy can sometimes earn you a cash rebate, and they can help reduce your system costs by 10 to 20 %.
In some states, legislation requires utilities to produce some part of their energy from solar power. When you live in one of these states, your devices will create solar renewable energy certificates (SRECs) for the amount of electricity your solar panel systems produce.
Some states or utilities give performance-based incentives (PBIs), which pay owners of solar energy systems a credit per kilowatt-hour for the electricity produced by their systems.
All local and state rebates, incentives, and tax breaks work differently, providing you with a type of cost support based on the generation of energy, one-time rebates, or credits over time, which can potentially make solar practically free.
Here are the incentive programs available by state and how they can assist you.
While just a decade ago predictions were negative, renewable electricity resources are increasing faster than anticipated and could increase by even 50 percent in the next five years. This significant growth is not only driven by the global boom in solar power and it’s benefits for the environment, but also by the appealing solar tax rebates and government-supplied offers, easily available solar energy financing options, and significant savings experienced by users.
The Solar Investment Tax Credit (ITC) was created during the George W. Bush administration, and it has become the most significant public policy for the solar power industry. The Implementation of the ITC has radically changed the solar industry, not only by making solar energy more affordable for residents, but also by improving employment opportunities.
The solar tax credit for 2020 is 26%. For projects that begin construction in 2021, the ITC will step down to 22% and decrease to zero for residential after December 31, 2021.