There are many incentives that you can use to install solar panels on a property. These include Feed-in tariffs, Tax credits, and community solar programs. There are also up-front rebates. Not all programs are available for everyone. It's best to check with your state's office of renewable energy to see which programs are available in your area.
Tax credits
Tax credits for solar panel installation are a great way of helping to offset the cost. These credits can be claimed by owners of new or renovated solar panels and can also be used to offset the cost of purchasing battery storage systems. Homeowners who want to increase their energy storage capacity for energy security and backup power will find the new credit of 30% a great incentive. Moreover, the new tax credit is expected to prevent the emission of 1 billion tons of carbon dioxide by 2030.
To be eligible for the tax credit, you must have taxable income and install your solar PV systems for the first time. The tax credit cannot apply to a solar lease agreement or PPA. You can claim a tax credit for the equipment, wiring and inverters that make up your solar array.
Feed in tariffs
Feed-in tariffs on solar panels give households incentives to install solar panels, and then generate their own power. This money is non-taxable and will give the household around three pence each kilowatthour of energy it exports to the grid. The recent government plan to eliminate feed-in tariffs is a setback for the renewable energy sector.
Although feed-in tariffs for solar panel panels are very rare, they do exist. At present, seven states have solar feed-in tariffs, according to the Database of State Incentives for Renewables and Efficiency (DSIRE). Although solar feed-in tariffs are unlikely to make a significant impact on the economics of solar installations, they can help to mitigate the financial risk associated with going solar.
Community solar programs
New York's Solar for All Program offers incentives for solar panel installations. The program helps low-income New Yorkers by allowing them to subscribe to community solar projects. The program also reduces the implementation and financing costs of solar projects and maximizes savings for participants. Community solar subscriptions are also not likely to interfere with existing measures of electrical efficiency, such as the Energy Affordability Bill discount.
In addition to providing financial assistance for solar panel installation, community solar programs also help to create jobs and increase community wealth. The DOE launched the SunShot Initiative to make solar energy more affordable than traditional electricity sources within a decade. The National Community Solar Partnership is a similar initiative. It combines momentum from both the private and public sectors, and brings together relevant stakeholders to accelerate community-solar deployment in low- and moderate income communities.
Up-front rebates
You can save money by getting upfront rebates on solar panels. These rebates are available from the state, the panel manufacturer, or the utility company. Rebates vary in amount but typically amount to a dollar-for-dollar reduction in the total cost of installing solar panels. These rebates offer savings to homeowners. The main benefit to residential solar panels is net Metering. This means that each kilowatthour of solar energy produced, the homeowner will see a one-dollar drop in their monthly electricity costs.
Another advantage to solar panels is the possibility of leasing them. These leases can be very affordable and can be very cost-effective. These agreements usually have a term of 20 years, and both the homeowner AND the local utility will benefit. There are pros and cons to each method, so shop around before you choose the right one.