Switching to solar is a great way to reduce your carbon footprint and save some money on your energy bill. If you want to install solar panels on your house, there are several ways to receive tax credits for them.
The Federal Investment Tax Credit (ITC) offers a credit of 26% for residential and commercial solar installations. This credit is available for systems installed and operational by December 31, 2023, and then the credit will decrease to 22% for 2024 and beyond.
Some states offer additional tax credits for solar energy systems, which can be applied to state income tax or property tax. These credits vary by state so it is important to check the specific rules and regulations in your state.
Some utility companies offer rebates for customers who install solar panels. These rebates are typically a one-time payment and the amount varies depending on the utility company and the state.
In some states, homeowners with solar panels can sell Solar Renewable Energy Credits (SRECs) to utility companies to help them meet their renewable energy goals. This can provide an additional source of income for homeowners with solar panels.
It is recommended to consult with a tax professional or an accredited solar installer to determine the specific tax credits and incentives available in your area.