Welcome to part three of our newest series at Intermountain Wind & Solar: "You've Installed Solar! Now What?" In our previous chapters, we've gone over simple themes like solar power monitoring, solar power maintenance and how to address situations where your solar panels are not producing the expected amounts of energy.
At Intermountain Wind & Solar, we're among the top solar energy companies in Salt Lake City, Utah and Boise, Idaho areas, offering the very best solar power installation, home battery services and more. We also offer solar financing options, plus a full range of assistance with things like solar power tax incentives and rebates - and those will be the topic of this next entry in our series! Here are some tips on how to identify and claim solar installation tax credits or other incentives that may be available to you.
One of the most important available solar incentives is the Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC). This program allows homeowners and businesses to deduct up to 30% of the total cost of their solar panel system from their federal taxes. However, this credit has already begun decreasing, and will end entirely in 2032 - making it essential to capitalize on while it's still available.
There are certain simple qualification guidelines for this credit, including that the solar setup be located at your residence, that you own the system, and that the system is new or being used for the first time. It cannot be claimed for secondary installations.
In order to claim the Federal Solar Tax Credit, you need to file IRS Form 5695 along with your annual tax return. You will also need to provide a copy of your receipt for your solar panel system installation which should include details such as the date, cost, and size of your system.
In addition to the Federal Solar Tax Credit, there are also state and local incentives that may be available to you. These can vary greatly depending on your location, so it's important to research what is offered in your area. Some states offer cash rebates, while others may offer property tax exemptions or sales tax waivers for solar installations.
To find out what incentives are available in your state, you can check with your local utility company, visit the Database of State Incentives for Renewables & Efficiency (DSIRE), or consult with a professional solar installer like Intermountain Wind & Solar.
Again, these are areas where certain incentives are either disappearing or already gone. The Utah solar tax credit, for instance, expired this year after decreasing for several years previously.
A bit different from tax credits are solar incentives, which may be offered by utility companies or other organizations as a way to promote the use of renewable energy. These can include things like cash rebates, feed-in tariffs (FITs), or net metering programs that allow you to sell excess energy back to the grid.
Some states and utilities also have specific requirements for equipment used in solar installations in order for them to qualify for these incentives. Make sure to research and follow any guidelines before making your purchase.
Another form of financial assistance for solar installations are grants, which may be available through federal, state, or local programs. These can range from small awards to cover a portion of the installation cost, to larger grants that fully fund the project.
However, competition for these grants can be high and they often have strict eligibility requirements. It's important to thoroughly research and properly apply for these opportunities if you are considering them as a source of funding for your solar panel system.
No matter which of these incentives you may qualify for, it's important to carefully review the terms and conditions before moving forward with any installation. Some programs may have certain restrictions or requirements that need to be met in order to receive the full benefit.
Additionally, keep in mind that these incentives can change or expire at any time - so don't delay if you are interested in taking advantage of them. Contact Intermountain Wind & Solar today to discuss your options and get started on your solar journey! Together, we can help you make the most of renewable energy and save money on your energy bills, whether you're in SLC, Utah or Boise, Idaho areas. We're here to support you every step of the way.
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