Did you know that homeowners who switch to solar energy to power their homes save on average nearly $1,500 off their utility bills annually? With savings like that, you might consider a solar array of your own. But doesn’t solar cost a lot?
Well, it can, but with the right information, the cost can drop considerably. While the average American solar array might cost $18,000 to $20,000, those that take advantage of the vast number of solar incentives can see that price point cut in half or even more.
If you’re interested in how to install a solar system without the hefty investment, keep reading.
Solar Tax Incentives
Among the many solar incentives that make switching to sustainable energy worth looking into, the federal tax credit is the most influential. Available to all qualifying US citizens, those installing a solar array can see a reduction of up to 26% on their federal taxes.
To claim the tax credit, you’ll fill out IRS form 5695 when filing your taxes. However, this incentive won’t last much longer; the credit drops to 22% in 2023 and will stop for residential systems in 2024.
But just because this incentive has a limited timeframe, you can still receive a state tax credit in certain states. Some states, like New York, offer as much as 25% return for new installs. When combined with the federal incentive (yeah, you can claim both) homeowners are saving nearly 50% on their solar array.
Solar Panel Rebates
In addition to notable tax returns offered by federal and state governments, some homeowners can earn rebates for installing roof solar panels. Some states allow you to fill out a form and earn a one-time payment on your new energy system.
This is usually paid through your utility company and may require you your system to the power grid. To take advantage of these rebates, contact Blue Raven Solar for your installation.
Other Solar Incentives
More of an added benefit than an incentive, homeowners that connect their solar array to the local power grid can qualify for their state’s net metering program. This allows them to sell their excess power back to the utility company for a fixed price (the price will vary by state). Net metering doesn’t usually come back in the form of cash, but as a credit on future utility bills.
Those who research incentives in their state might find low-income incentives for households that otherwise couldn’t afford it. This gives those on a limited budget access to renewable energy at a reduced cost, and in some states as low as zero upfront costs. It is important to know that some of these leasing options disqualify you for federal and tax incentives.
More on the Cost of Solar Panels
This short guide to solar incentives should put these opportunities on your radar. While an investment in a solar array might seem daunting up front, these benefits can severely drop the price of installation. For more on the advantages of solar panels and how they can save you money, check out our Tech section.