What financial incentives are there for solar?
Solar has never been more affordable for homeowners. Let’s take a look at some of the federal and state rebates available to put solar on your roof today.
30% Federal ITC
The ITC is a 30% tax rebate that comes with the installation of a new home solar system and, in order to meet higher renewable energy goals, the US just extended it to 2018 at it’s current rate. That is huge. Savings can range from $6,000-$12,000 depending on the size of your system. The ITC was put into place in 2005 to encourage the growth of solar by easing the initial financial burden homeowners. It has been extremely successful over past ten years and has helped the price of solar reach an all-time low. Savings will be at 30% until 2018 and then taper off to settle at 10% in 2022. Keep a close eye on diminishing savings as the industry grows.
State and County Credits and Rebates
Along with the ITC, each state has employed its’ own incentive package to further lower the initial cost. Each state has varying cash rebates, tax credits, and special financing offers that, when combined with the ITC, lead to savings of 30-50% off new home solar systems.
Property Value Increase
Installing solar panels on your home increases the resale value of your home. Depending on where you live, that increase could be 3% or as high as 17% (as one NREL study found in the San Diego area). Wherever you are, solar panels are a long term investment in your property value.
Property Value Tax Credit
Not only will you see more value in your home, but in most states, that added value is property tax free. So whether your property value increases by 3% or 12%, that increase is tax free
Solar power is no longer futuristic technology; it is here now. The ITC and state incentive packages have put home solar well within reach of the average homeowner. If you want to control your power and save, 2016 is the year to do it.