Solar tax credits and rebates
Installing solar power system in your home has considerable benefits. Not only you are able to cut back your use of traditional sources of energy, you are able to contribute to the betterment of the environment. Plus, do you know you can often receive incentives from the government when you install solar panels in your home?
Yes, it is true. Federal, state and local government offer these marvelous solar tax credits and rebates. These are incentives for people, especially homeowners, to switch to using renewable sources of energy like the incredible power of the sun. These renewable energy incentives may be for solar photovoltaic electricity, and some for wind-generated electricity, or for solar thermal or hot water generation. These programs vary from state to state, and the incentive types can be specific. They may be established for the homeowners only, but some other programs are also offered to many schools and industries as well. Some states though are quite generous to cover up as much as 30% of a homeowner’s power system cost.
The federal government allows homeowners to cut the cost of their solar power system down 30% by reducing their federal taxes through a program called investment tax credit (ITC). For instance, if you don’t expect to owe the federal government taxes this year, you may hand over your credit the following year.
Because of these incentives, a household’s solar power system cost will be dramatically reduced. As a result, the use of solar power system is made less expensive than using power from the utility company, thanks to these tax rebates and credits.
Top States that Offer Solar Tax Credits and Incentives
Remember that it’s not necessarily the number of sunny days, the amount of the sunshine, nor the latitude that will make a state a good solar state. But it’s in the incredible incentives that make a good solar state. Although most states support renewable energy, the following states below have adopted these incentives as well as advanced policies and strong support for the renewable source of energy.
7. New Jersey
8. New Mexico
How to Take Advantage of the Solar Tax Credits?
You may wonder, how can you receive these incentives? In order to quality for these incentives, first your solar power system must be installed only by a licensed Photovoltaic System Installer. Your system will then be connected to the grid only by a licensed electrician. You must first do a research, though, to find out if your contractors are legitimate and licensed before having your solar power system installed. This will help you avoid any inconvenience and therefore will increase your chances of qualifying for these tax rebates and incentives.
You should also plan ahead and plan quickly. You must be aware that these incentives are available only for a specific period, and many of these programs cater to homeowners on a first-come-first-served basis. You should also carefully consider whether or not to include the incentives in your solar power system’s budget because there are possibly more requirements and deadlines to meet before you qualify for the incentives. If you budget for the system without the incentives, you will be able to see how much money is needed in case you do not qualify.