Several Solar incentives and rebates are available to homeowners in 2023 to help them save money on solar energy. These programs can be combined for maximum benefits. Here are eight popular incentives and rebates currently offered:
1. Federal Solar Tax Credit: This credit reduces the amount of federal taxes owed by 30% of the total cost of a solar power system. There is no maximum dollar amount, and it can be claimed in the year the system is turned on.
2. State Tax Credit: Many states offer their own tax credits additionally to the federal incentives.
3. Performance-Based Incentives (PBIs): Instead of a cash rebate, PBIs pay homeowners for the solar energy they produce and send to the electric grid. This can be combined with other incentives. One type of PBI is a feed-in tariff (FIT) that guarantees a payment higher than the grid's market price for electricity.
4. Solar Renewable Energy Certificates (SRECs): SRECs are tradable certificates or credits representing electricity generated from solar energy. Homeowners can earn and sell SRECs to generate additional revenue.
5. Utility Rebates: Electric utility companies offer upfront incentives, such as cash payments or per-watt/kilowatt-hour incentives, to encourage solar panel installations.
6. Tax Exemptions: Homeowners may be eligible for property and sales tax exemptions, varying by state, to reduce the financial burden of solar installations.
7. Net Energy Metering: Solar panel owners can receive billing credits for excess electricity generated and sent back to the grid. These credits offset grid consumption during periods of low solar energy production.
8. Grants and Subsidized Loans: Some homeowners may qualify for grants or low-cost loans to assist with the costs of purchasing and installing solar energy systems. These financial assistance options are offered by various government agencies.
By taking advantage of these incentives and rebates, homeowners can make solar energy more affordable and reduce their energy costs.
Isn’t it fantastic that you can significantly cut down your energy bills and also get a hefty 30% federal tax credit when you install a solar panel system? This is all thanks to the Solar Investment Tax Credit (ITC), which gives you a substantial reduction in your federal income tax. It’s not just a small deduction, but an actual dollar-for-dollar reduction of the tax you owe! With this federal solar investment tax credit, your solar panels or solar water heaters become more affordable than ever. And don’t worry if your new system doesn’t entirely wipe out your federal tax bill in one year. You can roll over any unused portion of the ITC into future years, ensuring you fully benefit from this generous federal solar tax credit.
Get a Savings EstimateYou’ve probably heard of net metering, but do you really know how it benefits you as a renewable energy user? It’s a solar incentive that allows your solar PV system to send excess power back to the grid. When you install solar panels and produce more electricity than needed, this extra energy is not wasted. Instead, it goes back into the power grid, earning you credits on your energy bill - a fantastic way of maximizing residential solar use. Although there are some misconceptions about net metering not paying directly or needing battery storage for excess power, the fact remains that it aids in reducing reliance on non-renewable sources and promotes solar renewable energy usage. This makes installing a solar PV system an even more financially attractive prospect!
Get a Savings Estimate
Ever wondered how you can earn some cash while saving the planet with your renewable energy system? Well, let’s dive into the world of Solar Renewable Energy Credits (SRECs)! When your solar power system produces 1,000 kWh of electricity, it earns an SREC. These are basically solar renewable energy certificates that prove your energy is green. Utilities need these renewable energy certificates to meet sustainability goals and they’re willing to buy them from you! If you’ve got a new solar PV system installed, this could be a fantastic way to offset costs. So go ahead, make the most out of your solar photovoltaic investment!
Talk To a Solar Expert
Solargy is here to help you every step of the way to reduce your utility bills and your carbon footprint. Our Trusted & Certified installers setup your system right the first time.
