There are many incentives that you can use to install solar panels on a property. These include tax credits, Feed-in tariffs and community solar programs. There are also up-front rebates. Not all programs are available for everyone. You can check with the office of renewable energy in your state to find out what programs are available.
Tax credits
Tax credits for solar panels can be a great way to offset the costs of installing them. The credits are available to owners of new and renovated solar panels. These credits can also be used as a way to offset the cost for purchasing battery storage system. For homeowners who wish to invest in energy storage systems for back-up power or energy security, the 30% credit is an attractive incentive. The new tax credit is also expected to stop the emission of 1,000,000 tons of carbon dioxide per year by 2030.
You must be a first-time installer of a solar PV system. The tax credit can't be claimed on a PPA or solar lease. A tax credit can be claimed for equipment, wiring, and inverters used to make your solar array.
Feed-in tariffs
Feed in tariffs for solar panel installation provide incentives for households to use solar panels to produce their own electricity. This money is tax-free, and households will receive around three pence for every kilowatt-hour of energy they export to the grid. The government's recent plan to axe feed-in tariffs is a blow to the renewable energy industry.
Feed-in tariffs for solar panels are relatively rare, but they do exist. According to the Database of State Incentives for Renewables and Efficiencys (DSIRE), there are seven states that have solar feedin tariffs at present. While solar feed-in tariffs will not have a significant impact on solar installations' economics, they can reduce the risk of going solar.
Community solar programs
New York offers solar panel installation incentives through the state's Solar for All Program. By allowing low-income New Yorkers the opportunity to subscribe for community solar projects, this program assists them in their daily lives. Participants can save up to 50% on the costs of financing and implementing solar projects. A second benefit is that community subscriptions to solar energy won't interfere or affect existing efficiency measures like the Energy Affordability Bill Coupon.
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 SunShot Initiative. This initiative aims to make traditional electricity more affordable within a ten year. The National Community Solar Partnership (a similar initiative) harnesses momentum from both public and private sector sectors and convenes stakeholders to accelerate community sun-power deployment in low- and medium-income communities.
Receive up-front rebates
Up-front rebates for solar panels are a great way to lower your solar panel installation costs. These rebates are available from the state, the panel manufacturer, or the utility company. While rebates can vary in size, most will result in a dollar-for–dollar decrease in the total cost to install solar panel systems. These rebates offer savings to homeowners. The main benefit of residential panels is net-metering. This means that every kilowatthour produced by a solar array, the homeowner will save 1 on their monthly electricity bill.
Another benefit of installing solar panels is that you can often take advantage of a solar lease, which can be very affordable for many people. These agreements usually have a term of 20 years, and both the homeowner AND the local utility will benefit. There are a few advantages and disadvantages to each method, so make sure to shop around before deciding which is right for you.