Did you know that many states offer financial incentives to encourage residents to install solar panels? For example, in New York state, the Solar Energy System Equipment Credit offers residents a tax credit (capped at $5,0000) equal to 25% of the total cost of their solar system equipment.
Curious about the incentives offered by your specific state? Recognized by the Department of Energy, The Database of State Incentives for Renewable Energy and Efficiency provides a state-by-state look at financial incentives for solar and other types of technologies.
Federally, consumers who purchase their own solar systems are eligible for the Federal Solar Investment Tax Credit. The ITC plays a crucial role in stimulating growth in the solar industry. This year, the tax credit available for homeowners will amount to 26% of net installation costs, and the tax credit offered to businesses will amount to 26% of gross installation costs. This money, received in the form of a rebate, can help you pay your federal income taxes!
Another reason to go solar now, rather than waiting, is that as the popularity of solar grows, financial incentives often decrease. For example, next year’s ITC will decrease by 4%, to 22%. Decreases like these are also occurring on a state level.
Transition to solar now, and take advantage of these state and federal incentives!