How Much Do Solar Incentives Decrease Costs?
Solar incentives, available from a variety of governmental and private sources, offer a highly effective means of reducing upfront costs. Thanks to these enticements, energy independence is affordable for almost everyone today.
Solar energy doesn’t benefit just you, but everyone around you too. This kind of power helps users become more energy independent and financially secure, but it also reduces the stress on the municipal power grid.
Because of the many benefits photovoltaic energy offers, a number of incentives are available today to help people to make the switch to solar power. Not only do these incentives reduce your upfront costs, but they also reduce your per-watt energy costs over time.
Federal Tax Credits
The federal government offers tax credits for homeowners as well as businesses that install solar.
These tax credits help to offset the cost of a solar energy system by deducting a sizeable portion of your system’s equipment and installation cost from the taxes you owe. In this case, a tax credit is more beneficial than a tax deduction because it’s an overall reduction on your tax bill. Tax deductions merely make your taxable income lower.
When you install a solar energy system in your home or business, you can qualify for a tax credit of about 30 percent of the cost of your system!
State Tax Credits
Several states also offer tax credits for installing solar.
These will allow you to deduct part of the cost of your system from your state tax bill. The amount and availability vary from state to state, but you can learn about what your state has to offer here.
Various sources offer cash rebates to encourage people to install a system in their home or business.
These rebates may be offered by your utility company, your state, municipality or another non-governmental organization that recognizes solar power’s value. Rebates are normally only offered for a limited time after you have installed your system.
Rebates can help to reduce the cost of installation by another 10 to 20 percent, depending on where you are, so make sure you ask us about the rebates currently offered in your area.
Solar Renewable Energy Certificates (SRECs)
Some states require utility companies to produce a certain amount of clean energy each year. These states often offer SRECs as a way to encourage people to install systems and help them achieve their goals.
SRECs are earned for the amount of electricity you produce with your solar panels.
Under a SREC program, your utility companies pay you for your excess solar power, so they can take credit for it in the eyes of the government. Whether or not they use the electricity doesn’t matter; they only want to be able to add it to their statistics for clean energy produced.
These and other incentives, especially when combined with one of the many advantageous system financing programs available today, will significantly decrease both your upfront and long-term solar energy costs. To learn more about how this works, contact us today.
Intermountain Wind & Solar is the premier alternative energy contractor in the Intermountain West. We are standing by to answer all your questions and help you find those solar incentives that will help you establish energy independence.