Solar Rebates..Did you know that there are more than 2 million solar panel systems installed in the U.S. alone?
The solar power industry has been growing over the past few years as more and more people have solar panels installed. However, the cost of solar panels can be a deterrent for some people.
That’s where solar rebates come in.
Solar rebates can save you a lot of money on your solar panel installation: 26% at the very least!
Keep reading to learn more about the solar rebates currently available to you.
The Solar Tax Credit
Also known as the federal investment tax credit (ITC), this tax credit currently gives you a rebate of 26% on your solar panel installation cost.
As amazing as this solar rebate is, it isn’t guaranteed to last forever. The ITC gives you back 26% of your installation cost in 2021 and 2022. In 2023, the ITC drops to 22%.
By 2024, the ITC expires.
The ITC has been extended multiple times in the past, but there’s always a chance it might not be extended again. Individuals interested in installing solar panels might want to do so sooner than later in case the ITC isn’t renewed.
State Tax Credits
In addition to the ITC, your state might have a tax credit for solar panel installation. There aren’t many states that have this type of tax credit, but here is a list of all the states that do:
- Arizona – $1000
- Idaho – $5000
- Iowa – $5000
- Massachusetts – $1000
- Montana – $500 for individuals, $1000 for households
- New Mexico – $6000
- New York – $5000
- South Carolina – $3500
- Utah – $1600
You should keep in mind that for most of these, the amount listed is the maximum tax credit you could receive, not the minimum.
Utility Solar Rebates
Utilities may also offer rebates for solar panel system installation. Like with the states, utility solar rebates vary depending on which one you use.
For instance, according to blueravensolar.com/virginia/, you can receive deep discounts in Virginia based on who your provider is.
Make sure you get in contact with your utility to find out if they offer a solar rebate.
You can also save money through solar incentives. These function differently from rebates since you don’t get money back on the installation. However, solar incentives don’t have a cap like solar rebates.
Solar Renewable Energy Certificates
Also called SRECs, solar renewable energy certificates can be a little confusing to understand at first.
As the owner of a solar panel system, you earn an SREC for every megawatt-hour of solar electricity your system produces.
SRECs exist because some states have requirements stating that utilities must produce a certain percentage of their electricity from renewable sources.
Utilities have two ways of obtaining SRECs (which help them meet their state’s requirements). They can produce the electricity with renewable sources themselves, or they can pay you for your SRECs.
SREC prices function like stock prices; they can vary and change depending on the SREC market.
In general, performance-based incentives mean you get paid a certain amount of money per kilowatt-hour of energy produced.
Performance-based incentives have a much more consistent payout compared with SRECs since you are paid a fixed rate for the energy you produce.
Take Advantage of Solar Rebates and Incentives
As you can see, there are several ways for you to make back some of the money you might invest in a solar panel system.
While solar rebates and incentives may vary from state to state, they are worth checking out so that you can calculate your potential savings.