Solar

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.

THE Solar Energy MARKET

  • The EIA expects an addition of 42 gigawatts (GW) of new capacity to launch commercial operations by 2020. Solar and wind account for nearly 76% of these additions.
  • More than half of the solar PV capacity additions to the utility-scale electricity sector will be in four states: Texas 22%, California 15%, Florida 11%, and South Carolina 10%.
  • The size of the U.S. Solar Panel Market is projected to reach USD 22.90 billion by 2025.
  • The residential solar market achieved an all-time record with installed capacity of 71.3 GW in 2019, enough to power 13.5 million homes.
  • The share of renewable energy generation is expected to grow from 17% in 2019 to 19% this year and to 22% in 2021.

WHAT INCENTIVES ARE THERE FOR Solar Panels?

INVESTMENT TAX CREDIT FOR SOLAR
Tax

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.

STATE TAX CREDITS
Credits

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.

CASH REBATES
Cash

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 %.

SOLAR RENEWABLE ENERGY CERTIFICATES (SRECS)
Energy

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.

PERFORMANCE-BASED INCENTIVES (PBIS)
Performance

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.

Arizona
Arizona
Maryland
Maryland
Oregon
OREGON
California
CALIFORNIA
Maine>
MAINE
Pennsylvania
Pennsylvania
Colorado
Colorado
Michigan
Michigan
Rhode Island
Rhode Island
Connecticut
Connecticut
Minnesota
Minnesota
outh Carolina
South Carolina
Delaware
Delaware
Missouri
Missouri
Texas
Texas
Florida
Florida
North Carolina
North Carolina
Utah
Utah
Georgia
Georgia
New Hampshire
NEW HAMPSHIRE
Virginia
Virginia
Iowa
Iowa
New Jersey
New Jersey
Vermont
Vermont
Illinois
Illinois
New Mexico
New Mexico
Washington
Washington
Indiana
Indiana
Nevada
Nevada
Wisconsin
Wisconsin
Louisiana
Louisiana
New York
New York
Washington
Washington D.C.
Massachusetts
Massachusetts
Ohio
Ohio
Solar energy
ABOUT 2,500 MW OF UTILITY-SCALE SOLAR IS CURRENTLY UNDER CONSTRUCTION.
90-97 PER CENT OF THE COMPONENTS OF AN INOPERATIVE SOLAR PANEL CAN BE RECYCLED OR SOLD.
SOLAR POWER ACCOUNTS FOR 1.6% OF TOTAL U.S. POWER GENERATION.
EVERY YEAR SINCE 2013, SOLAR ENERGY HAS BEEN CLASSIFIED EITHER FIRST OR SECOND IN CAPACITY ADDED TO THE U.S. ELECTRICAL GENERATION.
EACH YEAR, AMERICAN SOLAR POWER REMOVES MORE THAN 70 MILLION METRIC TONS OF CARBON DIOXIDE, WHICH EQUALS TO ALMOST 1.2 BILLION TREES PLANTED. Tree
IN 2019 21.3GW OF NEW UTILITY PHOTOVOLTAIC PROJECTS WERE ANNOUNCED.
THE LARGEST SOLAR FARM IN AMERICA, SOLAR STAR, GENERATES 579MW ITSELF, AND IS FOUR TIMES THE SIZE OF CENTRAL PARK.
CONSTRUCTION OF NEW SOLAR POWER PLANTS MAY IN SOME CASES BE UP TO $10 PER MWH CHEAPER THAN CONTINUING TO RUN EXISTING COAL PLANTS.
ACCORDING TO STANFORD RESEARCHERS, OVER 1.47 MILLION SOLAR PANELS ARE IN USE ACROSS THE CONTIGUOUS 48 STATES.
A REPORT FROM GREENTECH MEDIA ESTIMATES THAT MORE THAN 650 MW OF COMMUNITY SOLAR WILL BE IMPLEMENTED IN 2021.

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.

HISTORIC AND PROJECTED
Renewable

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.

ANNUAL U.S. SOLAR INSTALLATIONS
Credit
In the last decade, solar has experienced an average annual growth rate of 50%.
Credit
THE ITC IS A 26% TAX CREDIT FOR SOLAR SYSTEMS ON RESIDENTIAL AND COMMERCIAL PROPERTIES.
THE 25D TAX CREDIT WILL STEP DOWN TO 26% IN 2020, 22% IN 2021, AND 0% STARTING IN 2022.
THE SOLAR ITC HAS HELPED THE U.S. SOLAR INDUSTRY GROW BY MORE THAN 10,000% SINCE IMPLEMENTED
AN ITC EXTENSION WOULD ALLOW 58,000 MORE SOLAR JOBS IN 2021 THAN A SCENARIO WITH NO-ITC EXTENSION.
IF THE ITC IS EXTENDED, 3.5 PERCENT OF U.S. ENERGY PRODUCTION WOULD ACCOUNT TO SOLAR BY 2022.