Investing in a residential solar power system for your home not only helps you save on electricity costs, but also gives you access to a host of government incentives.
Today, we’ll take a look at the top solar incentives in the US that you can take advantage of when you decide to go solar.
#1: Solar Investment Tax Credit
If you have your solar power system installed—or use it for the first time—between January 1, 2006 and December 31, 2023, you are entitled to tax credits you can use to reduce the total amount of income tax you have to pay.
If the installation is done between 2020 and 2022, you’ll receive a 26% tax credit. If it’s done in 2023, you’ll get 22%.
You qualify for this incentive as long as you own the solar power system and have it installed on your primary or secondary home or at an off-site community solar project.
#2: Solar Renewable Energy Certificate
Also known as solar renewable energy credits, solar renewable energy certificates (SREC) are an incentive the state provides to households based on the power their solar power systems generate.
What’s great about these certificates is that you can sell them to energy providers or anyone who’s willing to buy one in exchange for payment that’s generally regarded as taxable income.
To qualify, all you have to do is register your solar power system with the proper state authorities so they can track its energy production.
#3: Tax Exemptions
Depending on where you live, installing a residential solar power system may give you access to certain tax exemptions.
You see, solar power system installations typically cause property values to rise, which, in turn, causes property taxes to also rise—at least that is what’s supposed to happen.
The good news is some states and municipalities don’t take this increase in value into account when calculating property taxes so you don’t have to pay extra just because you want to cut your energy costs.
#4: Subsidized Loans
Depending on the size of your property and your energy requirements, having a solar power system installed may mean a sizable upfront investment. Fortunately, to encourage more households to make the switch to renewable forms of energy, some states offer subsidized loans to make the process easier on the budget.
What does all this mean?
The US government clearly wants more households to transition to renewable forms of energy, such as solar, by offering those that do a host of financial incentives. If you want to take advantage of this opportunity, you need to make the investment now.
Don’t know where to start? Just book a no-obligation free consultation with one of our solar panel consultants and we’ll guide you every step of the way.