Considering switching to solar? Good news! The U.S. has many incentive programs that you can take advantage of to reduce the cost of solar installation in your home. If you are thinking about going solar, you may want to take advantage of these programs because they can help to lower your upfront installation costs.
Solar assistance initiatives in the U.S.
The solar energy sector in the U.S. has been growing rapidly for years, led by newer technologies such as mounting systems and thin-film solar cell technology. An increasing number of people are now interested in installing solar energy systems for residential and commercial uses.
Many states have incredible incentive schemes in addition to the federal solar tax credit, which is available to all Americans. In Vermont, for example, an Investment Tax Credit scheme reimburses up to 30% of eligible expenses. New Jersey’s different energy-saving programs can save consumers up to $936 per year. You can obtain a $1,000 installation incentive and benefits for the next 10-20 years in Arizona and Alabama.
Cost-saving options to aid with out-of-pocket expenses
- Through the federal Residential Renewable Energy Tax Credit program, taxpayers can recover up to 26% of eligible expenses for installing a solar system on their property. On-site labor, the cost of building and installing the system, and the costs of linked piping and wiring are all eligible expenditures. If the entire tax credit amount exceeds the homeowner’s owed taxes, some of it can be rolled over to the following year.
- In addition to federal credit, several states offer tax credits or other incentives for installing solar energy systems.
- Some utilities provide performance-based incentives, paying customers a specific amount for each kilowatt-hour of solar energy produced.
- Purchasers of solar panels may be eligible for incentives from some utility companies and cities. However, as solar technology has become more affordable, these incentives are becoming more difficult to come by.
How long does it take to get your money back?
Electricity costs the average American a few hundred dollars every month. When you purchase a solar system, the energy generated by your solar panels substitutes the typical electricity you would purchase from the utility company. This can help you eliminate or at the very least lower your electrical bills.
On the other hand, solar panels usually require a significant upfront cost. Most solar panels come with a 25-year warranty and a 25-year life expectancy. As a result, consumers often get their money back in 5-8 years. With all of the incentives available, you could obtain free electricity and bonus credits over the remaining years.