With a decline in the fossil fuels that provide energy and environmental damages making the headlines, switching to using clean energy has become essential. Not only does green energy such as solar power save our planet, but it also trims the electricity bills.
In simple words, opting for solar energy translates into reduced electricity costs and more savings. There’s a catch though. The investment in solar panels can be extensive. That’s the first thought that comes to anyone’s mind who plans on switching to a clean source of energy.
However, government solar incentives save the day as they offer incredible financial encouragement, which can reduce the cost of investment. Therefore, you can take a significant advantage from these government solar incentives.
Here is an in-depth look into the matter:
What Are Government Solar Incentives?
Most investments can be high for an average homeowner. To slash the expenditure, the government provides incentives or offers. With the help of these incentives, the authorities share the investment expenses with the citizens.
A governmental incentive that is related to the use of solar power is a government solar incentive. It is an attempt by the authorities to encourage you to make the move from unclean energy sources to solar power.
The incentives promote the expansion of solar power. To this end, utilities, organizations, and the government offer financial incentives and solar tax breaks. Such initiatives make solar more accessible for homeowners.
With these incentives, the net cost of getting a solar panel system slashes from anywhere between 30-50%. So, for instance, if you thought that installing a solar system was costly, availing a government solar incentive will cut those costs by a significant percent.
Examples of Solar Incentives
A case in point is the Federal Investment Tax Credit (ITC) for Solar. This incentive deducts 30% of the solar panel costs from the federal taxes. The ITC is applicable to both commercial and residential set-ups. This equates with huge cost savings if you opt for solar power.
In addition to a solar incentive by the federal government, there are other incentives by the state governments too.
As per this initiative, the average homeowner who uses solar power is paid for it. Moreover, according to the program, any excess solar power produced by homeowners is fed into the utility grid so that others can use it. The homeowner who shares this supply of clean energy is then paid for it.
The SREC program is a valuable one as it pays a person for both generating green energy and adding its excess to the grid. In this regard, SolarPowerRocks.com estimates that a person can roughly make 6 SRECs every year. This equates to $200 for folks using solar energy.
If you add these annual certificates, you can make money for fifteen years. This totals to $12,000 over fifteen years. However, the SREC program is closing its incentive to new applicants from 2021. So, an individual can take advantage of the program if he applies immediately in which case he can get ten years instead of the original fifteen years of benefits.
In What Ways Can You Reap Benefits From Government Solar Incentives?
Solar energy has grown significantly over the years. Between 2012-13, jobs in the solar industry in the US have grown by 20% as per the Solar Foundation. Besides, the solar industry has grown by 53% itself in recent times.
On top of all of that, solar energy is a clean energy source that helps to reduce your energy consumption and bills. Therefore, taking advantages of the solar incentives is an excellent way of getting started with solar power.
Mentioned below are more ways such incentives can prove to be beneficial for you:
1. Reasonable installation cost
Considering the sustainability of solar power and the benefits that it offers, it is wise to switch to using it. Without any incentive though, you will have to pay for solar panels and installation in full. With an incentive though, installation costs are more affordable than out of reach.
2. Increased savings
Incentives provide a reprieve from paying tax in full as discussed in the case of Federal Investment Tax Credit (ITC) for Solar. Thus, with an incentive in place, you can save substantially such as 30-50% in tax breaks.
3. Year-round clean energy source
Solar resource in the US is enormous. One hour of the summer sun in the noontime equals the US electricity demand annually. Additionally, the solar resource in the US varies between good to excellent. Therefore, you can get a good electricity supply throughout the year.
4. Improved home value
You can also derive more advantage such as upgrading your home’s worth. A house’s value goes up significantly by purchasing a solar power system. Numerically speaking, a study by Lawrence Berkeley National Laboratory concludes that the value of a house goes up by about $15,000 after installing a solar system.
5. Environmental benefits
Once you have solar power in place, you can reduce your carbon footprint. Each kilowatt-hour of solar power generated lessens greenhouse emissions such as carbon dioxide and other dangerous pollutants like particulate matter, sulfur oxides, and nitrogen oxides. Solar energy also declines water consumption and withdrawal.
Summing up, you can reap substantial advantages from government solar incentives by installing solar panels at reduced prices. Moreover, you can save more owing to the cash rebates and tax credits offered.