Going solar helps you tap into a source of energy that doesn’t produce greenhouse gases and other harmful emissions. Additionally, the heat and light from the sun is an inexhaustible resource. Solar power will reduce your utility bills and make your home more attractive to home buyers.
To encourage more consumers to go solar, federal and state governments provide solar incentives and solar panel rebate to homeowners using solar power. Solar incentives come in many different forms. Some of the various tax incentives and discounts that are available for consumers interested in solar energy include:
Financing Solar Panels and Tax Credits
One of the best financial incentives for solar power installation is the federal solar tax credit (ITC). The tax credit was passed under the George Bush administration in 2005 and is based on the cost to install a solar system. You can claim 26% of your solar installation expenditure as a credit on your federal tax return.
Some state governments and utility companies offer cash rebates to homeowners who install solar systems. The rebates you receive depends on the size of your solar installation and your financial situation. They can help reduce your system costs by 10 to 20%. To find out if you qualify, reach out to a local tax advisor. However, cash rebates are set for a limited time.
State Tax Credits
2020 marks a year of change for residential solar in California. There are a number of generous tax credits for solar power in the Golden State. These amounts vary significantly by the municipality.
In California, the local utility solar rebate is $0.20 to $1.25 per watt. The discount is given after the utility company has granted permission to operate. California’s tax credit for solar does not have a maximum limit. There are also a couple of cities in Southern California that offer solar subsidies to homeowners.
Solar Subsidized Loans
A solar energy system will pay for itself over time, but the initial installation cost can be quite high. Various departments within the federal government offer grants and loans to homeowners. One can also approach public banks for a subsidized loan. Some homeowners will go directly to a private lender.
Solar loans function the same way as home renovation loans. These loans will help you offset the initial installation cost of the solar power system. In California, solar power loan amounts are available from $1,500 to $50,000. The subsidized loans cover solar panels and solar water heater units. You’ll need to figure out the solar power costs and what you can afford.
Solar Renewable Energy Certificates
Solar Energy Certificates (SRECs), also known as green energy certificates, are given when you purchase qualifying solar power systems. SRECs are purchased by utilities, which are required by states such as California. They are among some of the best solar incentives in many states. The value of an SREC is determined by the market.
You, too, can take advantage of these programs for solar financing. Ensure that you are aware of all of the incentives for which you qualify.
Are you searching for the highest solar power rebates? Don’t hesitate to contact us.