Energy prices, including gasoline, spiked 5% from April to May 2022.
Everyone in America feels the crunch at the pump and in their monthly utility bills. With no end to inflation, it’s up to individual citizens to modify their consumption habits.
One way to save money is to switch from fossil fuels to solar power. But isn’t solar installation expensive?
It isn’t if you know how to take advantage of the various solar programs offered by the federal and state governments. Do you want to learn more about these solar incentives? Read this handy guide and see if switching to solar is right for your budget.
Residential Renewable Energy Tax Credit
The United States government wants you to switch to solar power, and the Residential Renewable Energy Tax Credit incentivizes new installation.
Under this solar incentive program, homeowners installing solar panels claim up to 26% of qualifying installation costs as a tax rebate. In other words, the U.S. Government refunds over a quarter of your solar panel installation cost.
The qualifying costs of installation include labor, wiring, and assembly.
Modified Accelerated Cost Recovery System
Homeowners aren’t the only people feeling the pain from inflated energy costs. Small business owners face shrinking profit margins as the cost of goods and energy increase.
Overhead costs like utility bills can eat profits, but the Modified Accelerated Cost Recovery System (MACRS) is a solar incentive to keep those costs at bay. The MACRS eases business tax burdens and speeds up the ROI from a solar investment.
Business owners who install solar panels receive a five-year cost recovery period. Accelerated depreciation slashes the start-up cost by 30%
Property Tax Exemptions
Some states and municipalities offer a property tax exemption for solar panel installation. While you don’t receive a direct rebate for the cost of your solar panels, you do receive a break on your property taxes.
In California, the Active Solar Energy System Property Tax Exclusion eliminates property tax hikes for homeowners installing solar panels.
Solar Renewable Energy Certificates
38 states and Washington D.C. offer SRECs.
You earn these certificates through every megawatt-hour of clean energy your solar system produces. The state will then purchase these certificates from you, meaning you get cash for generating clean power.
Cash refunds are a great reason to contact your local solar installers. That cash could help with other aspects of your monthly budget.
Sales Tax Exemption
You may not have to pay sales tax on your solar system purchase.
Most states tax goods from 4-7%. That may not seem like a lot, but it can be when making a significant purchase. If you live in one of the 25 states offering this exemption, you stand to save a considerable sum of money.
The Best Solar Programs Save You Money
Solar programs offered by the federal, state, and local governments incentivize installation. With out-of-control inflation causing economic distress, a solar switch could ease your budget. The bonus of solar installation is the positive environmental impact.
Don’t delay. Go solar today and utilize one or all of these fantastic solar incentives.
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