If you are interested in installing solar panels on your property, there are a number of different incentives you can take advantage of. These include tax credits, Feed-in tariffs and community solar programs. You can also get up-front rebates. Some of these programs may not be open to everyone. It's best to check with your state's office of renewable energy to see which programs are available in your area.
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 qualify for this tax credit, you must install your solar PV system for the first time and must have taxable income. The tax credit can't be claimed on a PPA or solar lease. The equipment, wiring, inverters and other components that make up your solar system are eligible for a tax credit.
Feed-in Tarife
Feed in tariffs for solar panel installation provide incentives for households to use solar panels to produce their own electricity. This money is not subject to tax, and households will be paid around three pence per kilowatt-hour of electricity they export to grid. The recent government plan to eliminate feed-in tariffs is a setback for the renewable energy sector.
While feed-in tariffs on solar panels are not common, they do exist. At present, seven states have solar feed-in tariffs, according to the Database of State Incentives for Renewables and Efficiency (DSIRE). Solar feed-in tariffs can be beneficial for those who are looking to reduce their risk by helping to offset the financial risks associated with going solar.
Community solar programs
New York's Solar for All Program provides incentives for solar panel installation. This program provides low-income New Yorkers with the opportunity to subscribe to solar projects in their community. It also lowers the costs of financing and implementation of solar projects. Participants can save as much as possible. Another benefit is that community solar subscriptions won't interfere with existing electrical efficiency measures, such as the Energy Affordability Bill Discount.
Apart from providing financial assistance to solar panel installation, community-based solar programs help create jobs and increase local wealth. The DOE launched the SunShot Initiative to make solar energy more affordable than traditional electricity sources within a decade. The National Community Solar Partnership (a similar initiative) harnesses momentum from both public and private sector sectors and convenes stakeholders to accelerate community sun-power deployment in low- and medium-income communities.
Up-front rebates
A great way to reduce your costs for installing solar panels is to get upfront rebates. These rebates could be from the state, from a manufacturer of solar panels or from the utility. While rebates can vary in size, most will result in a dollar-for–dollar decrease in the total cost to install solar panel systems. These rebates are passed on to consumers as a savings. Net metering is the main benefit of residential solar panels. This means that homeowners will be able to save $1 on their monthly electricity bills for every kilowatt hour produced by a panel.
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 will usually have a 20-year term and will benefit both the homeowner and the local utility. There are some advantages and disadvantages to each option, so be sure to compare before making a decision.