Solar Panel Rebates for Homeowners

Government agencies, utilities and other authorized bodies offer a myriad of rebates, incentives and tax credits to encourage efficient energy usage, support the use of renewable energy products, and above all help to conserve energy to reduce pollution.

Solar energy has many benefits and contributes to a nation’s energy independence. It only has encouraging environmental impacts, but also offers more jobs than other sources of energy like coal, oil and gas sectors. To encourage these positive growths, governments offer solar panel rebates and tax breaks to make solar systems more affordable and accessible to modern home owners. As a result of these citizens in US alone can cut down on the costs of solar panel systems up to 50%.

Solar panel benefits available for businesses and home owners

Investment tax credit

The Federal Government offers a solar tax credit called Investment Tax Credit ICT. This allows the solar owners to deduct a section of their solar purchase cost from their taxes. This is 30% of the solar cost less any cash rebates. This incentive ends in 2022.  Here is more information on the federal tax credit.

State tax credit

There are some states that provide extra tax credits for erecting a solar panel system. With this state solar financial incentive, you qualify to deduct a portion of the solar cost from your state tax bill. Although similar to ITC, they vary from one state to another.

Cash rebate

Sometimes a buyer of solar system can receive cash rebates from the state, utility agent, municipality or any other authorized organization. These rebates are limited to a certain period of time and end after specified amounts of solar panels have been installed. The cash rebates can reach up to 20% off the solar system cost.

Solar Renewable Energy Certificate (SREC)

Some states require a certain percentage of power electricity to be generated from solar systems. Those that live in these states enjoy SREC. The authorities will buy your certificate and count your power consumption. You can earn lots of money if you decide to redistribute your solar power, depending on the current market value of energy in those states.

Performance based incentives

They function like SREC where states pay solar panel owners per Kwh credit for the power they generate or consume through the solar system. Some states offer this incentive only if owners have bought solar panels manufactured in that state. Unlike SRECs, they are not determined by the market rates but by the authorities.

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Now is the Time to Put Solar Panels on Your Home

Installing solar panels on your home is an investment that will pay off in multiple ways. Installed on your roof or another location that receives direct sunlight, solar panels are an excellent way to promote a greener lifestyle and save energy. Although the most direct benefits are financial, there are other important advantages as well. Here are 7 of the major benefits that I have seen from solar panels installed on the roof of your home.

  1. You will save energy, and your electricity cost will go down significantly. During periods when your solar system generates more electricity than you use (essentially the times when you are receiving sunlight), you will sell electricity back to your provider if you have net metering.
  2. Solar panels add value to your home. Any buyer will take into consideration the value of the panels and the lower electricity cost. The knowledge that solar energy is “greener’ will only help encourage a purchaser.
  3. Your return on investment is probably better than you think. The upfront installation cost may seem high, but with tax credits and rebates that are available, a return on investment of around 10% is reasonable to expect. Bear in mind that this a highly reliable rate of return that will only get better in the future as electric rates rise. Don’t get fixated on payback. Think of solar panels as a long-term investment.
  4. Solar power is as close to an inexhaustible source of energy as exists. Only when the sun is depleted will it no longer be viable, and none of us need to worry about the sun running low on energy anytime soon.
  5. Solar energy generated at your home emits no greenhouse gases at all. Having solar panels will reduce your carbon footprint.
  6. Solar panels emit no other toxic pollutants either. The electricity you generate is green and clean.
  7. Solar panels are silent. Unlike gas or oil-powered generators, the only sound you will hear is a faint, pleasant-sounding hum from the transformer that converts DC from your solar panels to AC for your home electricity.

And here is a bonus benefit: you will get a good feeling every time you see your electric meter running backward, with the knowledge that you are sending electricity back to the grid and getting paid for it.

Nothing is perfect, including solar power, so here are a few considerations to help guide your decision about the installation of solar panels at your home. First, you need sunlight. Solar panels are not as effective in cloudy environments (although more UV light gets through the clouds than you might think). Second, direct sunlight is best. If you live in the northern hemisphere, a southern-facing roof exposure is ideal. Conversely, in the southern hemisphere, a northern exposure is best. Shade is also a negative. If your home is heavily shaded by trees or taller buildings, the solar power that you can generate will be limited. Your panels should be installed so that they receive the most direct sunlight possible.

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