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 Feed-in tariffs, Tax credits, and community solar programs. You can also get up-front rebates. However, not all of these programs are available to everyone. Check with your state's renewable energy office to determine which programs are available.
Tax credits
Tax credits are an excellent way to offset the cost of 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. The 30 percent credit offers homeowners a tremendous incentive to purchase energy storage systems that can be used for both backup power and energy safety. The new tax credit is also expected to stop the emission of 1,000,000 tons of carbon dioxide per year by 2030.
You must first install your solar PV system and have taxable income to be eligible for this tax credit. You cannot claim the tax credit on a solar lease or PPA. The tax credit you can claim for equipment, wiring and/or inverters that make your solar array is valid.
Feed-in tariffs
Solar panels are installed by households through feed-in tariffs. This provides them with incentives to generate their own electricity. This money is non-taxable and will give the household around three pence each kilowatthour of energy it exports to the grid. The government's recent move to end feed-in tariffs will be a major blow to renewable energy.
Feed-in tariffs for solar panels are relatively rare, but they do exist. According to the Database of State Incentives for Renewables and Efficiencys, seven states have current solar feed-in rates. 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 projects
In New York, the state's Solar for All Program is offering incentives for solar panel installation. By allowing low-income New Yorkers the opportunity to subscribe for community solar projects, this program assists them in their daily lives. Participants can save up to 50% on the costs of financing and implementing solar projects. Another benefit is that community solar subscriptions won't interfere with existing electrical efficiency measures, 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 the SunShot Initiative to make solar energy more affordable than traditional electricity sources within a decade. Similar initiatives, such as the National Community Solar Partnership, harness momentum from the private and public sector and bring together stakeholders to accelerate community solar deployment within low- and moderate-income communities.
Get up-front discounts
A great way to reduce your costs for installing solar panels is to get upfront rebates. These rebates may be offered by the state, the manufacturer of panels or the utility company. While rebates can vary in size, most will result in a dollar-for–dollar decrease in the total cost to install solar panel systems. These rebates are passed onto consumers to help them save money. The main benefit of residential panels is net-metering. This means that every kilowatthour produced by a solar array, the homeowner will save 1 on their monthly electricity bill.
Another benefit of installing solar panels is that you can often take advantage of a solar lease, which can be very affordable for many people. These agreements will usually have a 20-year term and will benefit both the homeowner and the local utility. There are a few advantages and disadvantages to each method, so make sure to shop around before deciding which is right for you.