Did you know that the sun produces almost 400 septillion watts of energy? If you want to see that in numbers, it’s 400,000,000,000,000,000,000,000,000 watts. In other words, a lot of energy!
If you want to take advantage of the free, clean solar energy that is flowing directly onto our planet, it’s simple to do so. All you need to do is install some solar panels.
You may have some concerns about the upfront costs of installing a solar system, but the good news is that there are some great solar incentives to help you recoup some of the outlay.
Read on as we take a look at some of the best in 2021.
Federal Tax Credit
The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes.
For systems installed between 2020 and 2022, you can claim a 26% tax credit on the cost of your solar system. This falls to 22% in 2023. The system must be in use during the tax year, and be generating electricity for a residential home located in the US.
In effect, this credit reduces your federal tax bill by up to 26% of the cost of your system.
State Tax Credits
Some states also offer additional solar incentives. California, New York, Texas, Minnesota, and more all offer various incentives to reduce the outlay for your solar system.
Some states offer a solar tax credit. These work in a similar way to the federal tax credits but reduce your state, rather than federal taxes. The amount of the rebate will vary from state to state and can be subject to change, so make sure you do your research before you take the plunge.
State Government Rebates
Some states will offer a direct solar rebate on the cost of your system.
These rebates are usually time-limited but could reduce the cost of your solar installation by as much as 10%. Unlike tax credits, the money comes off the price you pay upfront.
Solar Renewable Energy Certificate
This is another state benefit.
After installing solar panels on roof tops you can earn solar renewable energy certificates from the state authorities based on the amount of energy that you produce. These energy certificates can then be sold to energy companies or other private individuals, which can help to set off some of the cost of your initial installation.
Take Advantage of These Solar Incentives
Energy costs continue to rise, so there’s never been a better time to take advantage of these solar incentives.
Not only can they help you save money, but you’ll also be helping to save the planet too, by generating some of your own green electricity and reducing the amount of energy you draw from the grid. If you’re thinking about going solar then contact local installers for a quotation.
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