Are There Incentives To Using Solar Energy As A Homeowner?
Millions of homeowners are making the switch to solar energy as it provides unprecedented savings and a more eco-conscious way to live. The freedom to live wherever and however you want is just another added perk of choosing to install solar panels on your home. If you live in a climate with plenty of sunshine, you may be looking to cut energy costs while considering the actual incentives of choosing solar power.
What Incentives Does Solar Energy Offer?
The most popular incentive for installing solar panels on your property is the federal income tax credit. This credit offers you the ability to recoup 26% of the final cost of installing your new panels during your next tax filing season. This number is currently valid until the end of 2022, but next year, the number will decrease to only 22% of the final installation cost. Most importantly, if you’re looking to convert your household to solar energy, the time is now as 2024 marks the end of the federal income tax credit for their usage.
Net Energy Metering or NEM is another incentive that’s only available in select states. What this entails is that any extra power that your solar energy produces is led back into the grid run by your local power company. The fact that the energy is unused and returned will result in money given back to you for not using excess power. If this is something of interest to you, make sure to look at your local regulations to ensure you qualify!
Certain states also allow homeowners that produce their energy to sell back the excess to power companies. For power companies to meet sustainability requirement standards, they must purchase a set amount of excess energy directly from homeowners each year. For every 1,000 kilowatt-hours, you generate and sell back, you can earn up to $300 depending on your location and local power company.
To get more homeowners to switch to sustainable energy, many states also offer tax exemption programs to make the switch more affordable. The first exemption you can opt for removes the added value of your solar panels from the overall value of your property so your taxes are less each year. Sales tax exemptions are another possibility as they allow you to cut installation costs by not having to pay taxes on your new solar panels.
Lastly, based solely on location, cash rebates are the last incentive you may receive for installing solar panels. The amount and the length of time these rebates are available are usually determined by the organization offering them.
Build Credit With Money You Save!
Solar energy is not only a great way to live more sustainably, but it offers a fantastic way to focus on your finances and to build your credit. If you are ever in the need to build your credit we recommend that you contact Personal Tradelines. With cash rebates and the amount of money you earn selling back your energy to power companies, you can ensure that your finances are on the right track!