Learn How Solar Rebates and Incentives Can Reduce Your Installation Costs


| 1/13/2017 12:00:00 AM


Tags: solar power, Massachusetts, EnergySage, Vikram Aggarwal,

home solar panels

A home solar energy system is one of the best ways to reduce your carbon footprint, increase your home value, and lower your electricity costs for decades to come. In recognition of the many benefits that solar offers for homeowners and the environment, many organizations – including the federal government, states and towns, and electric utilities – have established incentive and rebate programs to lower the cost of solar. Income tax credits, rebates, and tax exemptions are just a few of the incentives that could be available where you live.

State and Federal Income Tax Credits are a Significant Incentive

If you’ve spent any time researching solar, you probably know about the federal investment tax credit for solar. This nationwide incentive, which was recently extended through 2019, allows homeowners to deduct 30 percent of the gross cost of installing solar from their federal income tax. In effect, that means a 30 percent savings off of the list price. 

What you may not know, however, is that some states also offer income tax credits for solar. The state solar tax credit is one of Arizona's best solar incentives, and a diverse set of other states across the country, including New York, Oregon, South Carolina and Utah have similar programs.

Your Local Utility May Offer Rebates

Even if your state doesn’t have a tax credit, you may be able to get cash back on your solar investment with rebates through your electric utility. Many local and municipal utilities across the country, including two of the country’s biggest states for solar, California and Texas, offer solar rebate programs to their ratepayers.

Some of the utility solar rebates in California can reduce your solar costs by 25% or more. Silicon Valley Power’s rebate program, for example, currently offers a $1.25/watt rebate. Just how significant is a $1.25/watt rebate? EnergySage Solar Marketplace customers in California paid an average of $3.62/watt for their solar PV system, which means that a $1.25/watt rebate can cut their solar costs by more than a third.




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