The cost of going solar is typically around $20,000, which includes both the parts and the installation. In order to mitigate this problem, the government has devised a set of incentives that could make adopting renewable sources of energy such as solar power more appealing to homeowners and businesses. They come in the form of solar energy rebates and tax credits, among other things.
Who Is Eligible for a Solar Energy Rebate?
When you use alternative, renewable energy sources such as solar, you can claim an infinite amount of tax credit. In accordance with the law, solar power systems installed in the United States after 2009 and before 2016 are eligible for a 30 percent rebate on the total installation cost, with no upper limit. Prior to the passage of this law, a price cap of $2,000 had been established.
In addition to these federal solar energy subsidies, you can take advantage of any state incentives that are available in your region. The California Solar Initiative, which is sponsored by the state of California, which is known as the nation’s largest user of solar energy, offers state rebate programs for solar installations on both new and existing structures. Different solar systems and heaters are available in Florida for as little as $4 per watt. The state of Colorado offers a $2 per watt renewable energy incentive at the time of installation and a subsequent $1.50 per watt incentive to encourage residents to generate as much power as possible in homes that receive more than enough sunlight.
Depending on your home value and income, Massachusetts may be able to provide you with a cash rebate of up to $20,000 for solar energy. Alternative incentive programs for going solar exist in other states as well, and you can find out which ones apply to you by checking out the Database of State Incentives for Renewables and Efficiency (DSIRE). Apart from taking advantage of these state incentives, you can optimize the financial benefits in your state by selling back any extra generated energy back to the electricity system that you use.
What Factors Influence the Amount of Your Solar Power Rebate?
Before offering you a solar subsidy, the government takes into account the physical characteristics of your installation. The efficiency of your solar system also determines how much money you will be able to recover, so the geographical location of your home, weather conditions, obstructions, shadings, angle of installation, module efficiency, and other factors that could affect the efficiency of your solar system determine the amount of subsidy you will receive for your system.