Solar Energy Incentives: All You Need To Know

April 4, 2020

To get straight to the point, solar energy is and will be one of the leading energy sources that will power our homes and businesses. Over the past decade, there have been strides and future goals toward becoming energy independent. In fact, governments and organizations around the world have set up solar energy incentives, and here’s why. 

Renewable energy sources like wind and solar energy have proven to deliver a positive environmental impact on the planet. This cleaner electric energy source is the key to gaining our own energy independence. Because let’s face it, electricity is a basic human right in today’s world, and having to pay a hefty bill each month is absurd! 

To know the true value of solar energy and why you should make the jump, this article gives you the full rundown of all that you need to know about solar energy tax credits and rebates. 

Strides Towards Solar Energy

With the number of positive changes solar energy can bring into our lives, governments and organizations around the world are moving towards expansion in the energy industry. As a result, solar power incentives and tax breaks are offered for every installation of solar panels and systems to entice people to make the switch. 

In fact, according to the Solar Energy Industries Association’s report, there will be a 10-year solar investment tax credit (ITC) extension. This decade-long extension will amount to a private sector investment worth $87 billion by 2030. 

With these initiatives being set to motion, the future of solar energy is looking bright because who wouldn’t want to reduce the net cost of solar panel system installation between 26 to 50 percent?

Still not convinced about making the switch to sustainable energy? Picture this, by installing solar power systems on your home right now, you can save on the price of energy for a good 25 years. 

According to EnergySage, consumers of solar energy pay an average of $0.01 per kW/hour, by comparing the price average of paying utility companies to be energy-efficient you get to save a whopping $30,000 over a 25-year period. 

There’s a lot to cover and understand finances regarding solar energy. To better understand the different solar incentives available to homeowners and businesses, keep on reading.

solar energy

The ITC (Investment Tax Credit) for Solar

As mentioned earlier the ITC has been extended for 10 more years as an incentive for home and business owners to make the move to energy independence. But what exactly is it and who’s qualified? 

The federal government has provided the ITC to offer property owners a deduction of their solar expenses from their tax. By switching to solar, business and homeowner are able to qualify for a federal tax credit of 26 percent. Meaning to say, 26 percent of the cost to maintain a solar panel system will be deducted and given as cash rebates. 

Incentive 1:Cash rebates

Depending on your state, utility company or solar energy provider, it is possible to get cash rebates. These cash rebates can help reduce the cost of your solar energy system by 10-20 percent. However, they are only available for a limited time only because there is a specific amount of solar panel installations that come with cash rebates. 

Incentive 2: State tax credits

Similar to the ITC, the state tax credits are offered for installing solar panel systems. This additional tax credit, you can further save on costs. A portion of the cost of your solar panel can be deducted from your state tax. However, state tax credits differ from state-to-state. 

Incentive 3: Performance-based incentives

Depending on your state, performance-based incentives (PBIs) are offered to encourage solar energy.

This incentive scheme, you as a solar energy system owners are going to get paid per kilowatt-hour based on the amount of electricity you produce.  

Incentive 4: Solar renewable energy certificates 

Here’s another incentive where you’ll be earning from being energy independent. In some states, solar renewable energy certificates or SRECs can be bought by utilities. By selling your SRECs you can earn a substantial amount of money. 

Ready to take the next step?

Now is the best time to take advantage of solar power incentives. The best way to find and install your very own solar energy system is by partnering up with a local solar power installation provider like Sunstra. By working with solar energy installation professionals, they will be able to help guide you all throughout the installation process. 

Here are a few steps on becoming energy-efficient: 

Step 1

To get started, visit their website and contact their dedicated staff for a free in-home site visit. The engineers and solar experts will survey your space and evaluate the electrical status of your home.

Afterward, they will come up with a proposal of all the requirements needed to move forward with the solar energy system installation. 

Step 2

Before installing your solar panels, you need to first sort out your paperwork. You will be assisted with getting the right permits. As well as, the best incentives and government rebates with their assistance. These experts know their way around getting the best deals. 

Step 3

Choose and select the right solar panels for your home. With a solar energy service provider can help you find the right system for your home.

For instance, once the project is complete, the provider will make sure the system has met the government and energy company guidelines. 

With a solar service provider, the process of finding, selecting and installing a solar power system will be a success!

By making the switch today, you’ll be benefitting from a lot of solar power incentives saving you a substantial amount of money. You’re also taking part in steering away from harmful sources of energy and towards a cleaner way of living.

Are you ready to go solar? Fill up the form below to see If you qualify.