Are you thinking about installing solar panels on your home, but you’re not sure if it’s worth it?
There’s no doubt that going solar is a great investment if you can afford it. That said, it can seem daunting to raise the money you need to cover the upfront cost of installing a solar panel system. When will you actually break even?
Today, we’re going to help ease your mind by discussing solar incentives. These are rebates and tax breaks that are put in place to incentivize people to use solar energy. If you’re eligible, they can take a huge piece of the financial burden off of buying solar panels, so keep reading and get informed about these amazing incentives.
What Are Solar Incentives?
Although the cost of solar panels and solar panel installation has come down significantly over the years, you still need to raise a lot of money to make it happen. It leaves a lot of potential solar customers wondering if it’s really worth it, which you can read about more in-depth at blueravensolar.com/blog/are-solar-panels-worth-it/.
What solar incentives, like federal and state tax credits, energy certificates, and cash rebates do is pay you back for your investment, sometimes lowering the cost by up to 50%. Being able to apply and qualify for certain incentives will depend on where in the country you live, but the government is doing a much better job of making it possible for more people to go solar.
How Do You Apply For Solar Rebates?
So, what are these different solar incentives and how do you get them?
Far and away the best solar incentive is the federal investment tax credit (ITC), which gives back 26% of what you paid on your solar installation through taxes. This can save you thousands of dollars depending on the cost of your solar panel system and it’s a simple process where you just claim the ITC on your yearly tax forms.
Depending on which state you live in, you may also be able to apply for a state tax credit. Each state will have its own rules and regulations as far as this goes, but a growing number of them are recognizing solar tax credits. Applying for it is much the same as applying for the ITC, doing so on your tax forms.
The other incentive to consider is the cash rebates offered by some states, municipalities, and even utility companies for going solar. These are usually available for those solar customers that are early adopters in their regions. You can also apply for solar renewable energy certificates (SRECs) and performance-based incentives (PBIs) which are ongoing incentives that reward you for the amount of energy your solar panel system creates.
Breaking Even On Solar Power
It’s easier than ever to cover the cost of solar panel installation. With various solar incentives available to people across the country, you can nearly cut the cost of going solar in half. When you factor in how much you’ll be saving on utilities each month, going solar is an absolute no-brainer.
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