Although the cost of solar installation has decreased significantly over the years, it can nevertheless be a large investment for homeowners and business owners. However, the benefits of installing a sustainable source of energy can definitely justify the costs in the long run. To encourage more households and businesses to get on board with solar energy, you will find that there are lots of solar rebates and incentives available to you.
You Need to Own Your System
One thing to keep in mind is that you need to purchase and own your solar panel system in order to be eligible for any rebates and incentives. If you lease your system from a third party, the rebates will be applicable to them and it’s up to their discretion whether they wish to pass the savings on to you.
26% Solar Investment Credit and State Tax Credits
The federal investment tax credit, or FITC, is one of the best incentives you can take advantage of when installing a solar panel system. You can directly offset 26% of the cost of installing your system from the taxes you owe, and it can even be returned to you as a refund. In addition, depending on the state you live in, you may also be eligible for credit based on your state taxes. When you combine that with the FITC, you can find that it goes a long way towards offsetting your initial costs.
Solar Rebates and Incentives
To encourage more homeowners and business owners to utilize solar energy, some utility companies, municipalities, and states may offer cash rebates. This usually offsets 10 to 20 percent of the total cost of installation. Keep in mind that these rebates may not be available all the time, and may not be offered anymore once a certain quota has been reached in your area.
Solar Renewable Energy Certificates (SRECs) and Performance-Based Incentives (PBIs)
These two types of incentives are only applicable after your solar panel system has been up and running for some time. If you live in a state that requires utility companies to generate a certain percentage of their energy from renewable sources, you can sell your SRECs for up to hundreds or thousands of dollars.
With PBIs, you are paid in credits per kilowatt-hour produced by your solar panel system. While SRECs focus on emission reductions, PBIs focus on production. PBIs are not sold through a market like SRECs are.
You Have Come to the Right Place at Solar Energy Solutions of America for Solar Panel Installation
Solar Energy Solutions of America has completed hundreds of installations since our inception and our professional team is committed to making the most suitable recommendations based on your budget and lifestyle needs. From solar electricity to solar attic fans, no job is too big or small for us. You are welcome to check out some of our customer testimonials today and find out why you should choose us for your solar panel installation project.