Solar incentives are designed to lower the cost of solar panel installation and make solar energy more accessible. These incentives can vary by country, state, or even locality, but generally, they fall into several broad categories.
- Tax Credits: A tax credit reduces the amount of income tax you owe to the federal or state government. In some places, you can get a tax credit for a portion of your solar panel installation costs, meaning you pay less in taxes by the amount of the credit.
- Rebates: Rebates are partial refunds on the purchase price offered by government agencies, utilities, or manufacturers. You pay the full price upfront for your solar panel system, and then you receive a rebate, reducing the overall cost of the system.
- Solar Renewable Energy Certificates (SRECs): In some areas, solar panel owners can earn SRECs for the electricity their system generates. You can sell these certificates to utility companies, who buy them to meet renewable energy requirements. This can provide a significant income stream over time.
- Net Metering: Net metering allows solar panel owners to sell excess electricity generated by their panels back to the grid at retail prices. This can reduce your electricity bill or even earn you money if you generate more electricity than you use.
- Feed-in Tariffs (FITs): Similar to net metering, feed-in tariffs pay solar energy producers a set rate for the electricity they feed back into the grid over a specified period. This rate is usually guaranteed to be constant for the duration of the agreement, providing a predictable income stream.
- Performance-Based Incentives (PBIs): PBIs pay solar system owners based on the amount of electricity their system generates. Unlike SRECs, which are market-based, PBIs usually offer a fixed payment per kilowatt-hour of electricity produced.
- Low-Interest Loans: Some governments or financial institutions offer low-interest loans for solar panel installations. These loans can make it easier to afford the upfront cost of solar panels by spreading the payments over time.
- Grants: Grants are funds provided to cover part or all of the cost of solar installation. They are often targeted at specific groups, like non-profits, schools, or low-income households, and do not need to be repaid.
Each incentive has its own eligibility criteria and application process. It’s important to research and understand the incentives available in your area before proceeding with solar panel installation. We can help you navigate these options and determine which incentives you qualify for.