Solar Panel Incentives You Need to Know About
Did you know that getting solar panels on your roof is one of the more efficient and environmentally-friendly ways to power your home?
However, many homeowners are dissuaded from getting this upgrade as they see it as an expensive undertaking. Luckily, many solar panel incentives help you take the first step in going solar.
Read on to learn about the different ways to help you start your solar panel transition!
Solar Panel Leasing or Power Purchase Agreements (PPA)
When it comes to solar panel incentives, there are two main types: solar panel leasing and power purchase agreements. Solar panel leasing allows you to lease solar panels from a solar company. Then you receive a fixed rate for the electricity the solar panels produce.
On the other hand, with a power purchase agreement, you purchase solar panels outright. However, you will receive a lower rate for their electricity.
Solar Net Metering
Under a solar net metering agreement, solar panel owners can sell the excess electricity their system generates back to the utility company at a rate equal to the rate they pay for electricity. This system allows solar panel owners to recoup the cost of their investment over time. It ultimately saved money on their electric bill.
Solar Renewable Energy Credits (SRECs)
Solar Renewable Energy Credits (SRECs) are a solar incentive that can help you save money on your solar panel system. SRECs are credits earned for every 1,000 kilowatt-hours (kWh) of solar electricity you generate.
In most states, you can sell your SRECs to your utility company or to a third-party SREC aggregator. The value of your SRECs will vary depending on market conditions, but you can typically expect to receive $10-$15 per SREC.
Federal Tax Credit
The federal tax credit is a dollar-for-dollar reduction in your federal taxes. It is available for both residential and commercial installations. The tax credit is currently 30% of the cost of the system, and it does not have to be paid back.
These solar panel tax credits can be beneficial in offsetting the upfront cost of a solar panel system. Be sure to check with your state and local governments to see what state and local solar incentives are available in your area.
Utility Company Rebates
Many solar panel incentives are available to homeowners who want to install solar panels. One of the most typical incentives is a utility company rebate. These solar panel rebates can significantly reduce the cost of installing solar panels.
Many utility companies offer solar rebates of $1 per watt or more. It can add up to significant savings on your solar panel installation.
Property Tax Exemptions
Considering installing solar panels, you may be eligible for a property tax exemption. Solar panel incentives vary from state to state, so it’s essential to do your research. In some states, solar panels are exempt from property taxes.
In others, the value of your solar panels may be exempt from taxation. Check with your state and local tax authorities to see if you qualify for an exemption.
Consider These Solar Panel Incentives Today
If you’re looking to invest in solar panels there are a few financial incentives you should be aware of. There is the solar panel leasing or power purchase agreements (PPA), solar net metering, solar renewable energy credits (SRECs), federal tax credit, utility company rebates, and property tax exemptions. With solar becoming increasingly more affordable, now is a great time to explore your solar panel options.
If you enjoyed this article on solar panel incentives, then check out the rest of our site for more exciting topics.