Once you invest in solar panels for your home, you're eligible for an investment tax credit, also known as ITC. This is a federal tax credit that equals 30% of the cost of your solar power system. If you typically owe money at the end of tax season, this credit can reduce the amount you owe substantially. If you don't owe taxes the year that you invest in solar energy, you can use this tax credit the following year.
The goal of this tax credit is to reduce the upfront cost of a solar system, but the amount awarded through rebate is reduced each year. As more and more consumers switch to solar, available funds for the rebate will dwindle to nothing. Right now is the time to act if you want to receive some money back for your investment.
State & Local Incentives
Many states are now offering incentives to residents with solar power because they want to encourage the transition to cleaner, more sustainable energy sources. You must check with your state to determine whether an incentive program is in place and what type of compensation you can expect to receive if you invest in a solar system.
In California, residents with solar panels can receive incentives for producing excess energy that contributes to the state's power grid. This type of incentive program rewards residents not only for investing in solar technology but for conserving energy to contribute more power to the grid. The more you conserve, the more you can potentially save.
Some local governments are now offering incentive programs as well, but most programs are funded at the state level. If you want to learn more about the programs available where you live, contact Generation Sun to explore your options.