Going solar is a way to preserve the planet by minimizing your carbon footprint. However, acquiring and installing a solar energy system is expensive. For a lot of people, it is beyond their budgetary means, no matter how much they would like to do it. While they can see the potential for significant savings after the installation, they simply cannot afford the initial outlay of money.
To make it more affordable for homeowners, many states are incentivizing the switch to solar energy. Among the benefits they offer are rebates and making the installation tax-deductible. Since these are state laws, the incentives vary depending on where you live.
Federal incentives
The federal government offers homeowners the Residential Renewable Energy Tax Credit, which allows you to claim back as much as 30% of your total bill. However, you cannot claim unless you have a tax bill to pay the IRS. If you don’t owe anything during that financial year, you can roll it over into the following year.
So, which states off the best incentives? Here is a list of solar incentives by state.
California
The Sunshine State is one of the best places to install a solar energy system because of its climate and also because its government incentivizes it well. You can have the state pay the entire bill for the installation, but only if you are willing to pay it off via your property taxes. This is the Home Energy Renovation Opportunity (HERO) program, which applies in certain Californian counties and cities.
You can also apply for a cash rebate on your solar energy system. The amounts available depend on where you live. The Disadvantaged Communities – Single Family Solar Homes (DC-SASH) program makes some residents eligible for a rebate on their purchase. There are several conditions you need to comply with to qualify, so homeowners need to make sure they’re entitled to the rebate before committing to the purchase.
The Californian government favors net metering, a process whereby any excess energy you produce is fed back into the grid, and you receive a credit for it. This allows you to put your solar energy system to work for you.
New Jersey
The Garden State relies on a lot of solar energy production and is eager for its residents to participate. It offers the most incentives for solar energy installation and production, with more than 40 options available.
You might be eligible for a property tax exemption, meaning that your property taxes won’t increase even though its value has. New Jersey also relies on net metering, adding yet another reason for its residents to go solar. With Solar Renewable Energy Certificates, you get paid for every megawatt-hour of excess energy you generate.
Texas
They say everything is bigger in Texas, and based on some of its solar energy incentives, there might be some truth to that. The state government does not have any official programs to incentivize going solar, but many local governments and municipalities do.
In the city of Austin, you can apply for a $2,500 rebate on the installation, and you are recognized as eligible for the Austin Energy’s Value of Solar Tariff for each kilowatt of energy you produce.
Massachusetts
The Massachusetts state government allows its citizens access to some of the best incentives in the country. The incentives apply wherever you reside in the state, but the amounts vary according to the county.
You can apply for a Mass Solar Loan, which allows you to pay for your system with a low-interest loan. The Solar Massachusetts Renewable Target pays a fixed rate per megawatt-hour of excess energy generated for up to ten years. The rate depends on your income level, with poorer households being offered higher rates.