Solar Power Incentives for Homes

With many attractive federal and state tax credits available, the total upfront cost of home solar energy systems can be greatly reduced.

The Federal Residential Renewable Energy Tax Credit allows a taxpayer to claim a credit of 30% of qualified expenditures that serves as a residence of the homeowner. This includes labor costs for installation as well as the equipment itself. If the credit exceeds the taxpayer’s liability the remainder may be carried forward. The credit can be applied against the Alternative Minimum Tax (AMT).

Many states, counties and municipalities have funded solar rebate programs, tax credits deductions, loans, grants and rebates. To find updated information about solar energy incentives available to you, visit http://www.dsireusa.org/.  In addition, many utility companies offer benefits which can reduce the cost of installing a solar energy system on your home.

A qualified solar installation company will provide detailed information about qualifying rebates and incentives and a detailed financial analysis at the time they prepare a quote to help you make an informed decision. In addition, it is standard practice for installation companies to complete and submit any incentive and rebate paperwork on your behalf and “carry” the cost of the refund to lower your out of pocket expense.

Traditional bank loans and home improvement loans offer homeowners a way to own the solar energy system outright. Solar leases and residential PPAs are a popular option because they offer solar energy without upfront investment and are structured as a monthly payment slightly below your monthly utility electric rate. You’ll want to compare different options to determine which one is best for you.

Read more about the financial benefits of a home solar power system . . .