As the world shifts towards renewable energy, solar power has become an increasingly popular choice for homeowners. At Aligned NRG, we’re committed to helping our customers understand the benefits of solar energy, including the various incentives available to make solar power more affordable. This guide will help you understand the different types of solar incentives, including tax credits, rebates, and more.
Federal Solar Tax Credit (Investment Tax Credit)
One of the most significant incentives for solar energy is the federal solar tax credit, also known as the Investment Tax Credit (ITC). The ITC allows homeowners to deduct a portion of their solar costs from their federal taxes. As of 2023, the ITC is set at 26%, but it’s scheduled to decrease in the coming years, making now an excellent time to invest in solar.
State and Local Incentives
In addition to the federal tax credit, many states offer their own incentives to encourage the adoption of solar energy. These incentives can take various forms, including:
- Tax Credits: Similar to the federal ITC, some states offer tax credits that allow you to deduct a portion of your solar costs from your state taxes.
- Rebates: Some states and utilities offer cash rebates to homeowners who install solar panels. These rebates can significantly reduce the upfront cost of going solar.
- Performance Payments: Some states offer performance payments, which pay you for the electricity your solar panels produce.
- Property Tax Exemptions: Some states offer property tax exemptions for homes with solar panels. This means the added value of your solar system won’t increase your property taxes.
- Sales Tax Exemptions: Some states exempt solar energy systems from sales tax, reducing the upfront cost of going solar.
Net Metering
Net metering is a policy that allows homeowners with solar panels to sell their excess electricity back to the grid. When your solar panels produce more electricity than you use, that electricity is sent back to the grid, and your utility company credits you for it. These credits can then be used to offset your electricity costs when your solar panels aren’t producing enough electricity, such as at night or during periods of low sunlight.
Solar Renewable Energy Certificates (SRECs)
In some states, homeowners with solar panels can earn Solar Renewable Energy Certificates (SRECs) for the electricity their solar panels produce. These SRECs can then be sold on the open market, providing an additional source of income for solar homeowners.
Making Solar Affordable with Aligned NRG
At Aligned NRG, we believe that solar power should be accessible to everyone. That’s why we’re committed to helping our customers navigate the various solar incentives and find the best financing options for their needs. Our team of solar experts will guide you through the process, ensuring you take full advantage of all the incentives available to you.
Switching to solar power is a significant investment, but with the various incentives available, it’s more affordable than ever. If you’re ready to take advantage of these incentives and make the switch to solar, contact Aligned NRG today. Our team is ready to help you every step of the way.
