Government Benefits For Solar Panels

Buying a solar energy system makes you eligible for the solar investment tax credit or itc which is a 30 percent federal tax credit on your system that is available through 2022.

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. Studies show that homeowners pay a premium for a solar home. 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. One study by lawrence berkeley national laboratory showed that on average solar increased the value of a home by about 15 000.

You have to purchase and install the system first and then you can apply for the credit. In these scenarios you are being compensated for the electricity that your solar panels generate. Arizona and massachusetts for instance currently give state income tax credits worth up to. Solar leases and ppas allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated.

By using solar energy to power your home greenhouse gas emissions from electricity could decrease considerably. Some will continue even after the federal credit expires. 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. 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.