Some common types of incentives for Solar energy systems include:
1. Federal Investment Tax Credit (ITC): This credit allows you to deduct a percentage of the cost of your Solar energy system from your federal taxes. The ITC currently allows for a credit of 26% of the cost of the system, but this percentage is scheduled to decrease in the coming years.
2. State and local rebates: Many states and local governments offer rebates or incentives for installing Solar energy systems. These can vary widely in amount and eligibility requirements, so it’s important to check with your local government or a reputable Solar installer to see what is available in your area.
3. Solar Renewable Energy Certificates (SRECs): Some states have programs that allow Solar energy system owners to earn SRECs for the electricity their system produces. These SRECs can then be sold on the open market, providing additional income for system owners.
4. Net metering: Net metering allows Solar energy system owners to receive credit for excess electricity they generate and send back to the grid. This can help offset the cost of electricity purchased from the grid during times when the Solar energy system is not producing enough electricity to meet the home’s needs.
5. Property tax exemptions: Some states offer property tax exemptions for Solar energy systems, meaning that the value of the system is not included in the calculation of property taxes.
Overall, taking advantage of these incentives can help offset the upfront cost of installing a Solar energy system and make it a more affordable option for homeowners.
