Solar-Energy Incentive Programs are Your Friends

| 6/17/2016 9:07:22 AM

Tags: solar power, home energy, solar financing, Simone Garneau, Quebec, Canada,

Buying Solar Panels for Home

In addition to the generous federal investment tax credit of 30%, there are over 900 financial and regulatory incentive programs for solar photovoltaic (PV) systems across the United States. While going solar is still a big decision with a pretty hefty price tag, it’s becoming more and more affordable, depending on where you live.

Solar costs have been falling (by more than 55% since 2009), and more and more states and municipalities are implementing incentive programs to encourage the switch to solar. Moreover, as electricity prices continue to rise in most parts of the U.S., installing solar panels is an investment that reaps even greater rewards.

Federal Investment Tax Credit (ITC)

The solar investment tax credit (ITC) is a 30% federal tax credit for solar energy systems, both residential and commercial. Originally set to expire at the end of 2016, the tax credit has been extended and will remain at the 30% level through 2017, 2018 and 2019 and then be phased out completely over the following three years, falling to 26% in 2020, 22% in 2021 and to 10% in 2022.

There is no cap on the maximum amount of the credit. If the tax credit is more than your tax liability in the year you install the system, you can carry forward the excess amount and use it in the future. Allowable expenditures include equipment costs and labor costs for assembly, installation, preparation, and interconnection.

The tax credit applies to installations on both principal residences and second homes (even an RV or a boat can qualify as long as they are considered as a second home according to the rules of IRS).

6/21/2016 8:42:51 AM

Thank you for the additional information on the $25 million cap for the Louisiana state tax credit. We will update the Sunmetrix solar incentive page for Louisiana accordingly.

6/20/2016 7:57:19 AM

This article needs to be updated ASAP to reflect that although there is a $10k tax credit on the books in Louisiana that currently the legislature has limited the funding to a $25 million dollar cap and that all of the funds are already committed to customers who have already purchased systems. In fact, due to the legislature enacting these limits retroactively there is not enough dedicated funds to pay out the incentive to customers who purchased prior to the funding limits being placed!

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