What are Solar Panel Incentives?
A whopping 78% of homeowners in the United States agree that they would install solar panel systems in their homes if they didn’t have to worry about the price of the systems. What if I told you that they are many solar panel incentive programs that can help you to reduce the cost? Stick around because this article would help you do just that.
Over the past few years, solar energy has gathered a lot of momentum because of the positive impacts it has on the environment. The energy from the sun is renewable, and it also provides more jobs in the United States than other energy sectors like coal or oil and gas.
To make sure that everybody gets a taste of solar power, the government has put laws in place that would allow it not only to be available to the rich and mighty but also to an average Joe or Jane. The result of these solar tax breaks and financial incentives means that you can get your solar panel at a reduced cost of up to 50%.
Here is a list of solar incentives that homeowners and businesses can make use of:
● Solar Renewable Energy Certificates (SRECs)
Legislation in some states like New Jersey, Florida, and Alabama demands that utilities generate a substantial amount of their total electricity from solar power. Let us say you live in New Jersey, for example, your solar panel system would generate SRECs for the total amount of electricity created by your solar panel system.
You can now sell your NJ SRECs to utilities who buy to make sure that they meet the Percentage requirement. You get to earn up to thousands of dollars per year, depending on how much need there is for the SREC.
● Investment tax credit for solar power
The investment tax credit (ITC), which is provided by the government, gives homeowners and businesses the privilege to subtract a portion of solar costs from their taxes. This is good because homeowners and businesses get the federal tax credit of up to 30% of their solar cost.
It is of note that the Tax credit would not continue to stand at 30%. Beginning from January 2020 and January 2021, the percentage will drop to 26% and then 22.3%, respectively.
● State Tax credit
Somewhat similar to the Federal ITC, the state tax credit allows homeowners and businesses to deduct the cost of their solar panel systems from their state bill tax. The amount or percentage deductible depends on the rule and regulations of the state that you are living in.
● Upfront Rebates
To encourage people to buy these solar panel systems,s the government offers upfront rebates. This solar panel incentive is getting rarer now, though, because the solar panel systems are already getting cheap. You can reduce the cost of getting your system with the use of cash rebates by up to 20%.
● Performance-Based Incentives (PBIs)
Customers of certain utilities are paid an amount based on the amount of all kwh’s of solar power that is generated. It could the power generated in the home or the one sent to the utility. This incentive system is great because it allows for more and more solar power to be generated.
Conclusion
These solar panel incentives are all great, but they would only be of benefit to you if you buy one of the systems. So if you want to enjoy them, get yourself a solar panel system. There are many programs that can help you to go solar while taking note of any financial constraints that you might have.
