When you purchase your solar system with cash or solar loan, you can take advantange of cost reductions in the form of solar incentives. These generous incentives allow Americans to affordably install solar panels on their properties.
After going solar, these lucky customers enjoy instant utility bill savings, and they did so with lower out-of-pocket costs.
Solar incentives really are one of the best benefits of solar ownership. In a way, federal and local governments are giving you money to help you save money.
Let’s take a look at the incentives available to you.
The Solar Investment Tax Credit (ITC) is a very generous solar incentive that allows you to claim a tax credit for 30% of the total cost of installing your solar system. It will reduce the cost of your solar installation and significantly boost your solar payback.
The Solar Investment Tax Credit (ITC) is a federal solar incentive that reduces the amount of taxes you pay to the federal government—it is a rebate you can use to pay off whatever federal taxes you owe.
For Homeowners: Calculate the net cost of your solar installation (minus any other incentives). And multiply that new dollar amount by 30%. This is your tax credit.
For Businesses: Calculate the gross cost of your solar installation (before any other incentives). And multiply that dollar amount by 30%. This is your tax credit.
This incentive is definitely one that you want to take advantage of, and it’s one of the main benefits that comes with solar ownership. It’s technically a gift card from Uncle Sam!
We’ve prepared a checklist you can use to ensure you meet the criteria for this incentive, with links to the forms needed.
If you have any questions, we recommend you consult with your tax professional.
When your solar system is installed, your utility company also installs a bidirectional meter, called a net meter, that measures how much electricity you use from your utility and how much solar electricity you send back into the grid—and you get paid for that energy!
When your net meter sends back to the grid any excess solar electricity that your system generates, you’ll receive the full retail value of that electricity, and at the end of each billing cycle, you’re only responsible for the “net” difference in electricity used and sent.
If you send more electricity back to the grid than you used during a single billing cycle, you earn credit towards your next bill.
With this special incentive, it’s possible to receive $0 or even negative electricity bills every month!
These solar grants and rebates vary by state, region, and even neighborhood.