Government Benefits For Solar Panels

Both homeowners and businesses qualify for a federal tax credit equal to 26 percent of the cost of their solar panel system minus any cash rebates.

Government benefits for solar panels. The federal government provides a solar tax credit known as the investment tax credit itc that allow homeowners and businesses to deduct a portion of their solar costs from their taxes. Solar leases and ppas allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated. Solar panels are viewed as upgrades like a renovated kitchen or a finished basement so purchasing a solar energy system will likely increase your home s value. One study by lawrence berkeley national laboratory showed that on average solar increased the value of a home by about 15 000.

Many states also offer tax credits for solar. If you can t produce solar energy at home why not buy clean energy from your local utility. By using solar energy to power your home greenhouse gas emissions from electricity could decrease considerably. In these scenarios you are being compensated for the electricity that your solar panels generate.

Solar renewable energy credits srecs and net metering are two key benefits of solar that allow you to earn bill credits or even extra cash as your system produces electricity. Learn more about the itc. Federal government incentives are given in the form of tax credits. The current program in the united states will give you a 30 credit for 2019 and 26 for 2020 of the installation cost of your solar power system.

You have to purchase and install the system first and then you can apply for the credit. Studies show that homeowners pay a premium for a solar home.