Homeowner & Business Solar Incentives
Investment Tax Credit
The ITC is a 30 percent tax credit for solar systems on residential and commercial properties. A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government.
State tax credits
A state tax credit is a dollar-for-dollar reduction of the tax you owe.With a state solar tax credit, you can deduct a portion of the cost of your solar panel system from your state tax bill, similar to the federal ITC. These amounts vary significantly by state.
One of the main advantages of solar rebates for homeowners and businesses is that, unlike tax credits, they don’t require you to have income to claim them. They are money off your total purchase price.That’s money that goes directly into your pocket.
Renewable energy credits
A renewable energy credit (REC) represents the property rights to the non-power attributes of renewable electricity generation. RECs are issued when one megawatt-hour of electricity is delivered to the grid from a renewable energy resource.
Other Solar Incentives
Performance-based incentives (PBI) are incentives that are paid based on the actual energy production of the solar system. A solar system that is paid through a PBI approach must have metering technology installed that measures the output of the system.
Tax exemptions include both property and sales tax exemptions provided by state and local governments to individuals and companies that install solar energy. An exemption makes it more economically feasible to install a solar system on a home or commercial property.