- Federal Solar Tax Credit
- State and Local Incentives
- Solar Renewable Energy Certificates (SRECs)
Federal Solar Tax Credit
The federal solar tax credit, also known as the investment tax credit (ITC), allows homeowners to deduct a percentage of their solar energy system costs from their federal taxes. As of 2024, the tax credit is set at 26% of the total system cost, but it is scheduled to decrease in the coming years. Homeowners should take advantage of this incentive while it is still available.
State and Local Incentives
Many states and local governments offer additional incentives for homeowners to install solar power systems. These incentives can include rebates, grants, or performance-based incentives. It's important for homeowners to research what programs are available in their area and take advantage of these opportunities to offset the cost of going solar.
Solar Renewable Energy Certificates (SRECs)
Some states have SREC programs that allow homeowners to earn credits for the electricity their solar panels generate. These credits can then be sold to utilities or other entities that need to meet renewable energy requirements. This can provide homeowners with an additional source of income from their solar power system.
By exploring these funding options and incentives, homeowners can make solar power more affordable and accessible in 2024.