3 Things You Should Know About Solar Incentives

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Going solar is one of the best decisions you can make, both for the planet and for your wallet.

Solar panel installation is coming down in price. Since 1977, the price has declined by about 77%, but that doesn’t mean that putting solar panels on your home is going to be cheap. One of the hurdles in the way of widespread solar panel ownership is the price tag.

What you need to realize, however, is that the up-front price of solar panels isn’t telling the whole story. With solar incentives, you can cut the overall cost of your solar panels down significantly. Keep reading and we’ll tell you 3 things you should know about solar energy incentives.

1. Federal Solar Incentives

The most important solar incentive out there is the Investment Tax Credit (ITC). Over the years, there have been many federal incentives for solar panel installation, but the current ITC was established in 2005, with the Energy Policy Act.

The ITC states that every American who invests in solar panels is able to claim 26% of the installation costs on their federal taxes.  This includes the cost of the solar panel system, installation, and all labor costs. An online tax calculator can be used to determine how the 26% tax credit will impact your tax return.

Although the ITC has been renewed numerous times, it’s currently scheduled to decrease to 22% at the end of this year and disappear entirely by the end of 2024. The time is now to cash in on this amazing solar energy incentive.

2. State and Local Rebates

There are also state tax incentives and local rebates that can further cut into the installation costs. With a nationwide solar energy company, like Blue Raven Solar, you can better understand what’s available in your area.

In terms of state incentives, how much you’ll get to claim is going to depend on where you live, but it functions in a similar way to the federal ITC, but for your state taxes. Some states also exempt solar owners from property tax.

Some states, municipalities, and utility companies will offer immediate cash rebates on solar installation. These are mostly available in places where solar hasn’t really taken off yet, but they can decrease the cost of solar by another 10-15%.

3. SRECs and Selling Power

Another way that utility companies and governments are incentivizing solar is with the net metering program. By allowing solar owners to sell their excess power back to the grid for a profit, utility companies make it easier for homeowners to negate their bills and decrease the break-even period for solar.

There are also solar renewable energy certificates, called SRECs, which are earned when you generate a certain amount of energy. Since utility companies are required to generate a certain amount of their energy through renewable means, you can sell your SRECs to them so they can hit their quota.

Enjoying Solar Incentives

Now that you understand a bit more about the many amazing solar incentives that are available to you, it’s time to look into solar energy companies. With the cost of solar going down and incentives available, going solar is more enticing than ever.

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