The US government has established some solar economic incentives for consumers in order to start choosing renewable energy rather than non-renewable energy sources.
As of now, several states offer solar incentives in addition to the Federal Investment Tax Credit (ITC) which aims to motivate homeowners and businesses to install solar panels. It is key to understand that each state has different incentives established, although there are a few common ones like tax credit, rebates and renewable energy certifications. The states with the most solar incentives are California, Texas, Minnesota and New York.
As you may know, each state has its own set of incentives that vary. That’s why there are many solar companies that offer different solar financial incentives, so we highly recommend reaching your installer and consulting the Database of State Incentives for Renewables & Efficiency for specifics and details.
State Tax Credits
The state tax incentives work the same way as the federal ITC incentive does, but for your state taxes. So exact amounts will vary depending on the state you’re located in.
State Government Rebates
Some states offer upfront rebates for going solar. These are most of the time available for a limited period of months while funds are available, based on the latter, we highly recommend you to check the rebates in your state in order to get a clear understanding of them and also to take the incentive before it’s too late. Keep in mind that government rebates can reduce solar costs by 20%.
Solar Renewable Energy Certification
The Solar Renewable Energy Certificate (SREC) is another type of incentive created by the US government. But it is a state-level incentive. Once you install the solar system and register with the appropriate state authorities, they will start tracking your system’s energy production and will offer you a SRECs as a benefit.
Source: Forbes Advisor