There are many incentives that you can use to install solar panels on a property. These include tax credits, Feed-in tariffs and community solar programs. In addition, you can also receive up-front rebates. Some of these programs may not be open to everyone. To find out which programs are available in your region, it's a good idea to contact your state's office for renewable energy.
Tax credits
Tax credits for solar panels can be a great way to offset the costs of installing them. These credits can either be claimed by the owners of newly installed or renovated solar panel systems, and they can also offset the cost to purchase battery storage units. For homeowners who wish to invest in energy storage systems for back-up power or energy security, the 30% credit is an attractive incentive. The new tax credit is also expected to stop the emission of 1,000,000 tons of carbon dioxide per year by 2030.
To be eligible for the tax credit, you must have taxable income and install your solar PV systems for the first time. You cannot claim the tax credit on a solar lease or PPA. For the equipment, wiring, or inverters of your solar array, you can claim a tax credits.
Feed-in tariffs
Feed in tariffs for solar panel installation provide incentives for households to use solar panels to produce their own electricity. This money is non-taxable and will give the household around three pence each kilowatthour of energy it exports to the grid. The government's recent move to end feed-in tariffs will be a major blow to renewable energy.
Although rare, feed-in tariffs are available for solar panels. According to the Database of State Incentives for Renewables and Efficiency, there are currently seven states with solar feed-in tariffs. While they are unlikely to have a significant effect on the economics and profitability of solar installations in the long-term, solar feedin tariffs can help to minimize the financial risk associated to going solar.
Community solar programs
New York's Solar for All Program offers incentives for solar panel installations. The program helps low-income New Yorkers by allowing them to subscribe to community solar projects. Participants can also save money by reducing the financing and implementation costs of solar projects. A benefit of community solar subscriptions is that they won't interfere in existing electrical efficiency measures like Energy Affordability Bill discounts.
Community solar programs not only provide financial support for solar panel installations, but also create jobs and increase the community's wealth. The DOE launched SunShot Initiative. This initiative aims to make traditional electricity more affordable within a ten year. The National Community Solar Partnership is a similar initiative. It combines momentum from both the private and public sectors, and brings together relevant stakeholders to accelerate community-solar deployment in low- and moderate income communities.
Up-front rebates
You can save money by getting upfront rebates on solar panels. These rebates can come from the state, from the manufacturer of the panels, or from the utility company. The amount of rebates will vary, but they are usually a dollar for dollar reduction in the total cost. These rebates can be passed on to the consumer as savings. The main benefit of residential panels is net-metering. This means that every kilowatthour produced by a solar array, the homeowner will save 1 on their monthly electricity bill.
You can also take advantage of solar leasing, which is a great option for those who don't have the finances to install solar panels. These agreements usually last for 20 years and both the homeowner or the utility will be benefited. There are many advantages and disadvantages in each method so you should shop around before choosing the best one for yourself.