What Homeowners Need to Know About Solar Incentives

There are several different incentives available to homeowners who install a solar energy system. These incentives may be federal, state or local and can be in the form of tax credits, rebates or renewable energy certificates.

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Depending on your location and the type of system you purchase, your savings will vary significantly. However, most will come in the form of monthly savings from lower electricity bills.

Federal Tax Credits

The federal solar tax credit has been a major driver of the solar industry’s growth in recent years. It allows homeowners to get 30% of their solar investment back in a tax refund check. Website

It’s important to note that you must have a qualified system and have taxable income before applying for this credit. It’s also a good idea to work with a tax professional who can help you determine whether or not this credit makes sense for you.

State Tax Incentives

In addition to the federal tax credit, most states and local municipalities offer property tax exemptions for solar systems. This means that you won’t pay extra taxes on your solar installation, even if it increases your property value.

Net Metering

Some states offer strong net metering policies, which allow homeowners to sell any excess solar energy generated by their system back into the grid in exchange for credits on their utility bills. This incentive shortens the payback period of a solar installation and often results in a higher return on investment.

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