HomeBusinessSolar's Financial Benefits: A Guide to Solar Rebates and Incentives

Solar’s Financial Benefits: A Guide to Solar Rebates and Incentives

Did you know that homeowners who make the switch to solar get solar rebates and other incentives? What’s more, going green and reducing the carbon footprint is an area that continues to grow. Even during these challenging times, the solar market has been resilient.

If you’re ready to learn more, here’s everything you need to know about solar rebates and incentives.

Solar Power Rebates and Incentives

Each state and utility company puts various incentives in place for homeowners to make a move to solar power. Homeowners have many reasons to take renewable energy seriously, from rebates and incentives for home solar power infrastructures to federal tax credits. For example, homeowners who install a solar system by December 2022 will receive a 26% tax credit.

In 2023, we will see the tax credit decrease to 22%, and in 2024, the tax credit goes away. So, those intending to install should be asking, “Are there solar providers near me?” now.

Cash Solar Rebates

Many organizations offer cash rebates to homeowners when promoting solar energy, including municipalities, utility companies, and states governments. These are usually only available for a specific period and end when they have reached a target number of installations. Besides, these rebates help reduce the overall cost of your solar system by 10-20%. 

Solar Renewable Energy Certificates

Many call these by the acronym SRECs, and they can be good news if you have a solar system. If you live in a state where utility companies are required to make part of their electricity generation solar, this can mean cash for you. Your solar system will generate these certificates, and your utility company will want to buy them so that they can count your energy production toward their quota. 

Performance-Base Incentives

Utilities and states will often offer performance-based incentives based on the number of kilowatts your system produces. Specific programs may require that equipment manufactured in your state be installed for you to qualify. These differ from SRECs since they are determined when installing your solar system and aren’t sold through a market.

Solar System Tax Exemptions

Installing a solar system is often seen as a property enhancement and may even raise your property’s value. Still, in many locations, that doesn’t mean a property tax increase since they don’t include your solar system’s value. 

What’s more, your solar system may qualify as a tax exemption from your state’s sales taxes, and this can mean additional cost savings that can be considerable depending on your state’s sales tax rate. 

Government Subsidized Loans

Some states offer subsidized loans as an additional incentive when promoting solar energy. These loans have a reduced interest rate and may be provided through your state, a non-profit, or your utility company itself. When they are offered, it is generally only for a limited time.

Are You Ready to Say Yes to Solar Rebates?

Homeowners have many ways to save money when looking to install a solar system. There are many reasons to consider an investment in solar energy for your home, including solar rebates and cash incentives. 

We hope we’ve helped you find the answers you were seeking. Come back to this site to find more informative articles. 

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