There are many incentives for solar panels that you could take advantage of if you are interested in installing them on your property. These include Tax credits, Feed in tariffs, and community programs. Up-front rebates are also available. Not all programs are available for everyone. Check with your state's renewable energy office to determine which programs are available.
Tax credits
Tax credits for solar panels are a great way to help offset the cost of installing solar panels. Owners of solar panels can claim these credits. They can also be used for the purchase of battery storage systems. For homeowners who wish to invest in energy storage systems for back-up power or energy security, the 30% credit is an attractive incentive. Moreover, the new tax credit is expected to prevent the emission of 1 billion tons of carbon dioxide by 2030.
You must be a first-time installer of a solar PV system. The tax credit can't be claimed on a PPA or solar lease. You can claim a tax credit for the equipment, wiring and inverters that make up your solar array.
Feed-in tariffs
Feed-in tariffs on solar panels give households incentives to install solar panels, and then generate their own power. This money is tax-free, and households will receive around three pence for every kilowatt-hour of energy they export to the grid. The government's recent decision to scrap feed-in rates is a huge blow to the renewable energy business.
Although rare, feed-in tariffs are available for solar panels. According to the Database of State Incentives for Renewables and Efficiency(DSIRE), seven states currently have solar feed in tariffs. Although solar feed-in tariffs are unlikely to make a significant impact on the economics of solar installations, they can help to mitigate the financial risk associated with going solar.
Community solar programs
New York's Solar for All Program offers incentives for solar panel installations. It allows low-income New Yorkers to sign up for community solar projects. Participants can save up to 50% on the costs of financing and implementing solar projects. A second benefit is that community subscriptions to solar energy won't interfere or affect existing efficiency measures like the Energy Affordability Bill Coupon.
In addition to providing financial assistance for solar panel installation, community solar programs also help to create jobs and increase community wealth. The DOE launched the SunShot Initiative. It aims to make solar power more cost-effective than traditional sources of electricity within a decade. The National Community Solar Partnership is another similar initiative. This partnership combines the momentum of the public and private sectors. It convenes all relevant stakeholders to accelerate community sunlight deployment in low-income and moderate-income areas.
Get up-front discounts
Installing solar panels can be cheaper by getting up-front rebates. These rebates could be from the state, from a manufacturer of solar panels or from the utility. There are many rebates available, but most of them will reduce the cost of solar panels by at least one dollar. These rebates offer savings to homeowners. The main benefit to residential solar panels is net Metering. This means that each kilowatthour of solar energy produced, the homeowner will see a one-dollar drop in their monthly electricity costs.
Another advantage to solar panels is the possibility of leasing them. These leases can be very affordable and can be very cost-effective. These agreements usually last for 20 years and both the homeowner or the utility will be benefited. There are pros and cons to each method, so shop around before you choose the right one.