Have you considered installing solar panels on your home? You probably did some research on cost, installation and whether your home and roofline have the right orientation, space and angle for efficient energy creation. Have you taken the time to investigate how to pay for them and how the government can help, e.g., through Florida solar incentives?
Research Local Incentives
Despite reductions in the price of solar systems, solar systems produce less than 5% of all energy in the U.S. To make these systems more affordable, states have implemented rebates and tax credits. Different states have different incentives, however. First, some states allow you to forgo sales tax on your solar system.
States also allow you to deduct a specific amount from their state income taxes. For example, solar incentives Virginia include Solar Renewable Energy Credits. When you generate power, for every 1,000 kilowatt-hours, Virginia’s utility companies pay you up to $70. These payments can help you pay off your system.
Research Federal Incentives
The U.S. government also offers tax credits for solar installation. As part of the Inflation Reduction Act of 2022, the federal government implemented renewable energy deductions.
You can claim up to 30% of the cost of your Solar system and its installation on your federal taxes. If you don’t need the full deduction the year you install your system, you can take the rest off of your taxes the following year.
However, the government will reduce these incentives as time goes on. Until 2032, you can receive a 30% deduction, but in 2033 and 2034, these deductions get reduced to 26% and 22%, respectively. In addition, you will receive no incentive from 2035 onward.
The federal government also offers the Investment Tax Credit, which reduces your taxes owed when you install solar panels. This is in addition to the incentive in the Inflation Reduction Act.
Investigate Rebates
Some solar systems and installers may also offer rebates. These partial refunds apply after you have your system installed. Utility companies and other organizations may also provide rebates.
Property Tax Savings
Some states offer property tax exemptions for solar systems after you install them on your home. Instead of your property tax increase due to its increased value as a result of your solar energy system, you will pay no additional property tax. Some states offer exemptions for a limited time, such as 10 years, while others offer assessment options.
For example, Montana offers a 10-year exemption, and Florida, Texas and Missouri offer a 100% exemption without a time limit. North Carolina offers an 80% exemption, while South Carolina offers no exemption.
Low-Interest Loans
Renewable energy projects, such as solar panel system installations, have low-interest loan eligibility. You can even find loans with interest below market rates. Low-interest loans encourage the adoption of renewable energy. Several improvements that increase energy efficiency qualify for these low-interest loans.
Work With Certified Installers
A professional installer can evaluate your property for solar efficiency. These professionals can also help you build a system that will work for you and reduce or eliminate your energy bills. They also ensure a safe installation that meets local code requirements.
As you investigate solar panels North Carolina, research the ways you can make your system more affordable.
