Government Benefits For Solar Panels

Solar renewable energy credits srecs and net metering are two key benefits of solar that allow you to earn bill credits or even extra cash as your system produces electricity.

Government benefits for solar panels.

If you can t produce solar energy at home why not buy clean energy from your local utility. By using solar energy to power your home greenhouse gas emissions from electricity could decrease considerably. Both homeowners and businesses qualify for a federal tax credit equal to 26 percent of the cost of their solar panel system minus any cash rebates. In these scenarios you are being compensated for the electricity that your solar panels generate.

The current program in the united states will give you a 30 credit for 2019 and 26 for 2020 of the installation cost of your solar power system. The federal government provides a solar tax credit known as the investment tax credit itc that allow homeowners and businesses to deduct a portion of their solar costs from their taxes. Federal government incentives are given in the form of tax credits. Solar panels are viewed as upgrades like a renovated kitchen or a finished basement so purchasing a solar energy system will likely increase your home s value.

Many states also offer tax credits for solar. Arizona and massachusetts for instance currently give state income tax credits worth up to. Solar leases and ppas allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated. Learn more about the itc.

Studies show that homeowners pay a premium for a solar home. You have to purchase and install the system first and then you can apply for the credit.