SOLAR PANEL INCENTIVES, REBATES, TAX CREDITS: A DEFINITIVE GUIDE TO SOLAR PANELS
WHAT ARE THE TYPES OF SOLAR PANEL INCENTIVES?
Between high electricity bills, abundant sunshine and the environmental benefits, going solar is well worth the long-term investment — especially when you take into account all the solar panel incentives. There are some pretty generous solar incentives to save on your switch to clean energy. These include the federal solar tax credit, state-wide net metering, and local and utility incentives.
Types of Solar Incentives
- Federal Solar Tax Credit
- Property Tax Exemptions for Solar
- Solar Sales Tax Exemption
- Solar Panel Rebates
- Solar Renewable Energy Credits
- Net Metering for Solar Power
- Solar Rights Laws
- Solar Easement Laws
- Solar Incentives by State
Federal Solar Tax Credit
If you’re considering going solar, the United States federal government offers a generous tax credit for those wanting to go solar. It is a 30% tax credit of the entire cost of your solar system, including a solar battery, applied to your federal taxes*. Better known as the Solar Investment Tax Credit, this incentive is available to both homeowners and business owners. The federal solar tax credit is one of the best available incentives for homeowners who choose to go solar.
Property Tax Exemptions for Solar
Interested in how a solar installation will affect the assessed value of your home? Here’s some great news: property tax exemptions exist in many states where your new solar energy system will be exempt from property tax assessments. This is significant because this property tax exemption could help you recoup the cost of your system. So even though your solar power system adds value to your home or property, the system is exempt for half a decade when property taxes are assessed.
Solar Sales Tax Exemptions
And speaking of tax breaks, some states also offer a sales tax exemption on the entire cost of your solar system. If you’re worried about the cost of solar panels keeping you from installing panels on your roof, sales tax exemptions help to cut down the costs. This means that your purchase of solar panels and equipment could be completely exempt from sales tax, depending on the state you live in.
Solar Panel Rebates
In some states, the utility companies will help to make your switch to solar even easier — with the use of rebates applied to your investment of solar panels. Utility companies are realizing just how fantastic solar panels are, and how much they can benefit everyone. So to encourage customers to go solar, some utility companies are offering solar rebates to help with the cost of switching to solar.
Solar Renewable Energy Certificates (SRECs)
Many states have an especially unique offering for residents with solar power: Solar Renewable Energy Certificates; also known as SRECs. SREC programs are designed to reward people for switching to clean, renewable energy. Here’s an example of how it works: for every 1,000 kWh of solar energy your PV system produces, you receive 1 SREC to use toward shortening the time it takes to pay off the solar installation costs. The certificates vary from state to state, so be sure to ask your Specialist from MG Solar about the specific details.
Net Metering for Solar Power
If you want to get the most value out of your solar panels, there’s almost no greater opportunity than net metering. With net metering, you can sell any excess electricity produced by your solar panels back to your utility company to cut down on energy costs. Your utility company will then credit your account for the electricity that they receive. This reduces your monthly bill even further, so more of your money stays in your hands, where it belongs. When you go solar with MG Solar, your Solar Specialist will handle any and all requirements for eligibility for you — no questions asked.
Solar Rights Laws
A common concern for homeowners, solar restrictions, shade coverage limiting the size, placement or production might have you worried about the solar system you want to install. Solar Rights laws protect the property rights of individual homeowners who want access to solar. The laws dissolve any local agreement, unreasonable restriction or deed of a property that make it difficult to use or produce solar energy. As a solar homeowner, it’s encouraging to know that the local and state governments support and defend your decision to make the investment to power your home with clean renewable energy.
Solar Easement Laws
Like any homeowner, you want to know that you’re getting the most out of any investment in your home. In some states, your investment in solar power for your home is backed by laws that ensure your solar panels capture energy without interference. Solar easement laws make it easy to remove any shade cover that would limit the production of your system. What’s more, solar easement laws also prevent home owner associations (HOA) from blocking or stopping your home solar panel installation.
Solar Incentives by State
Depending on your state, you may have additional solar incentives available to you. The best way to know every option available to you is to work with a dedicated solar expert who understands the in-and-outs of the industry. But until you’re ready, here are some of the top states for going solar and a breakdown of some of the solar incentives that could available to you.
- California Solar Incentives
- Florida Solar Incentives
- Illinois Solar Incentives
- Texas Solar Incentives
SAVING WITH SOLAR ENERGY
The solar panel incentives available to homeowners amplify the savings even more. The overall price of your solar system is greatly reduced. When you decide to install solar panels with MG Solar, our specialists take into account every incentive available to you and will help you calculate the final costs and maximize savings.
Owning Your Energy Instead of Leasing
While leasing solar panels presents a lower upfront cost, purchasing your solar panels gives you so much more power over your, well, power. Unlike rising electricity costs from the traditional electricity grid, your future energy costs with a purchased solar array powering your home are predictable and already paid for. You can’t say the same about leases or a power purchase agreement (ppa). Investing in solar for your home is a way to future-proof your home’s energy. With federal incentives, local incentives and statewide rebate programs contributing toward your solar installation, owning your energy through solar is more affordable than ever.
Power Production Guarantee
A power production guarantee is similar to a product warranty. It is there to assure you that the solar panels you buy will operate without issues. Production guarantees state that your solar panels will produce a projected amount of energy. It also states that your system will have a low rate of decline in performance over the next 25 years. When you switch with MG Solar, if the system does not produce the amount of energy guaranteed, you will receive the difference in cash.
Solar Power Battery Storage
If you’re concerned about power outages, now is a great time to consider a solar battery backup as an add on to your solar energy system. MG Solar will install the latest solar battery technology that makes sense for your home and your energy savings. Solar energy batteries, like the Tesla Powerwall or Enphase Encharge, will take any extra solar power your panels produce and store it for you to use later. So even when the sun goes down, your home can run on clean, green energy.
*Tax and credits or incentives including those provided by federal, state, or local governments may change or end. This can impact the amount of money you might save. Consult a tax professional to understand any tax liability or eligibility for any tax credits that may result from the purchase of your solar system.
**If you have taxable income and own the system, you may qualify for the federal investment tax credit (ITC). It is your responsibility to determine your eligibility and to apply. Consult a qualified tax professional for assistance and details.