If you are interested in installing solar panels on your property, there are a number of different incentives you can take advantage of. These include Tax credits, Feed in tariffs, and community programs. Additionally, you may also be eligible for up-front rebates. Not all programs are available for everyone. For information on which programs are available, you can contact the state office of renewable energies to verify.
Tax credits
Tax credits for solar panels are a great way to help offset the cost of installing solar panels. These credits can be claimed for owners of either new or renovated panels. They also can be used to offset the price of buying battery storage systems. For homeowners who wish to invest in energy storage systems for back-up power or energy security, the 30% credit is an attractive incentive. The new tax credit can also be used to offset the emission of 1 million tons of carbon dioxide in 2030.
You must first install your solar PV system and have taxable income to be eligible for this tax credit. A solar lease or PPA does not qualify for the tax credit. The tax credit you can claim for equipment, wiring and/or inverters that make your solar array is valid.
Feed in tariffs
Feed in tariffs for solar panel installation provide incentives for households to use solar panels to produce their own electricity. This money is not subject to tax, and households will be paid around three pence per kilowatt-hour of electricity they export to grid. The government's recent plan to axe feed-in tariffs is a blow to the renewable energy industry.
Although they are rare, there are some states that have solar panel feed-in tariffs. According to the Database of State Incentives for Renewables and Efficiency, there are currently seven states with solar feed-in tariffs. Solar feed-in tariffs can be beneficial for those who are looking to reduce their risk by helping to offset the financial risks associated with going solar.
Community solar programs
New York's Solar for All Program offers incentives for solar panel installations. By allowing low-income New Yorkers the opportunity to subscribe for community solar projects, this program assists them in their daily lives. It also lowers the costs of financing and implementation of solar projects. Participants can save as much as possible. Community solar subscriptions are also not likely to interfere with existing measures of electrical efficiency, such as the Energy Affordability Bill discount.
Apart from providing financial assistance to solar panel installation, community-based solar programs help create jobs and increase local wealth. The DOE launched SunShot Initiative. This initiative aims to make traditional electricity more affordable within a ten year. A similar initiative, called the National Community Solar Partnership, leverages momentum from the public and private sectors and convenes relevant stakeholders to accelerate community solar deployment in low and moderate-income communities.
Refunds up-front
Installing solar panels can be cheaper by getting up-front rebates. These rebates come from the state or the manufacturer of the panels. They can also be provided by the utility company. The amount of rebates will vary, but they are usually a dollar for dollar reduction in the total cost. These rebates are passed on to consumers as a savings. The primary benefit of residential-solar panels is net metering. That means homeowners will save one dollar each time they produce a kilowatt-hour from their monthly electricity bill.
You can also take advantage of solar leasing, which is a great option for those who don't have the finances to install solar panels. These agreements usually last for 20 years and both the homeowner or the utility will be benefited. There are some advantages and disadvantages to each option, so be sure to compare before making a decision.