Solar Tax Incentives
Making Solar Power Affordable
In the United States, both the state and federal government have fully recognized the benefits of solar energy. The government encourages the use of solar energy to power homes as well as commercial, utility and government buildings by offering solar tax incentives and solar power rebates. Offering tax incentives is the government’s way of telling people that using eco-friendly renewable energy is the right choice.
When people choose to install residential or commercial solar power systems, they can take advantage of solar energy rebates and solar power tax credits that will reduce the cost of installation. Additionally, if people need funding for their solar power project, the government provides access to below-market rate loans. With solar energy becoming an increasingly affordable option, people should seriously consider using energy from the sun to power their homes and commercial spaces. By using solar electricity, people can:
- lower or eliminate their annual electric bills
- increase the value of their property
- reduce their impact on the environment
Solar power is not only abundant – it is reliable, clean and affordable!
American Recovery and Reinvestment Act of 2009
In 2009, Congress passed the American Recovery and Reinvestment Act which allows eligible taxpayers to take the federal business energy investment tax credit (ITC) or receive a grant from the U.S. Treasury Department that can be applied toward the cost of installation for alternative energy systems. Under the Act, taxpayers that are eligible for the renewable electricity production tax credit (PTC) can receive a federal grant from the U.S. Treasury Department instead of using the PTC for new installations (Learn More…)
Residential Solar Power Incentives in California
Passed into legislation on January 1, 2007, the California Solar Initiative offers rebates to people who use renewable energy, providing instant return on investment for people who install solar power systems. At first, the rebate was offered as $2.50 per watt, but now the rate is decreasing because more people are choosing to use solar energy. The California Solar Initiative rebate is offered to residents and businesses that are connected to areas that are serviced by Southern California Edison, San Diego Gas & Electric Company and Pacific Gas & Electric Company.