2023 Solar Panel Rebates and Incentives: What’s Available?
As the world faces increasing levels of pollution and environmental destruction, governments worldwide are encouraging their citizens to invest in cleaner and more eco-friendly energy solutions. One such solution is the installation of solar panels in homes and businesses. To encourage the adoption of such alternative energy sources, several governments and organizations have put in place various rebates and incentives. In this article, we will explore some of the 2023 solar panel rebates and incentives that are available.
Federal Solar Cost Recovery
The Federal Government has introduced tax credits to encourage the adoption of clean energy sources. One such credit is the Solar cost recovery credit. This tax credit applies to businesses that install a solar panel system in their establishments. This means that the business can claim up to 26% of the total cost of the installation of solar panels as a tax credit. This tax credit also applies to homeowners who install solar panels in their homes.
The tax credit expires in 2023, meaning that any installation carried out before December 31st, 2023, is eligible for the tax credit. It’s essential to note that the 26% tax credit is not guaranteed beyond 2023.
State Solar Incentives
Many state governments across America have implemented their solar incentives to encourage the use of solar panels as a source of energy. States such as California, New York, and Hawaii have implemented various solar incentives that have helped increase the number of installations carried out in the areas.
One such incentive is the California Solar Initiative. This initiative is targeted at residential and commercial customers of the state’s three largest utility companies: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E). Through this initiative, customers who install solar panels are eligible to get cashback incentives based on the system’s size.
Another incentive is in Hawaii, where homeowners and businesses that install solar panel systems are eligible for both tax credits and other incentives. Hawaii homeowners can take advantage of the ‘Solar Roofs and Clotheslines’ program, which provides homeowners with $1,000 incentives to install a solar panel system.
Other states such as New York have implemented measures such as the NY-Sun initiative, which provides homeowners that install solar panel systems access to tax credits and other incentives. Through this initiative, homeowners and businesses in the state can access tax credits of up to 25% of their total solar installation cost.
Local Solar Incentives
In addition to state and federal incentives, local governments such as cities and municipalities have implemented their solar incentives. Local incentives are more commonly targeted towards smaller businesses or homes.
Some local incentives include property tax rebates for solar panel installations, grants for solar panel installations, and low-interest loans for solar panel installations. These local incentives are put in place to help lessen the financial burden on people and businesses that want to install solar panels.
Utility Company Rebates
Utility companies offer rebates to encourage their customers to adopt cleaner and more eco-friendly energy sources. These rebates can cover a significant portion of the solar installation costs.
For example, customers of PG&E are eligible for rebates that could cover up to 50% of the total installation costs. Other utility companies such as Duke Energy and Rocky Mountain Power offer their rebates to customers that install solar panel systems.
Solar Renewable Energy Certificates (SRECs)
SRECs are tradeable certificates issued by the state government to solar panel owners. These certificates are issued based on the solar panel system’s energy production and can be sold to companies that need help meeting their renewable energy targets.
SRECs provide an additional source of income for solar panel owners, helping them offset some of their installation costs. States such as New Jersey and Massachusetts implement SREC programs that can generate hundreds or even thousands of dollars extra per year for solar panel owners.
Conclusion
2023 Solar Panel Rebates and Incentives vary from state to state and utility company to utility company. Homeowners and businesses looking to install solar panels must research the incentives available in their specific state, utility company, or local government.
With the Federal Solar Cost Recovery Credit set to expire in 2023, now is the time to invest in solar panel installations to enjoy the financial incentives available while they last. Investing in solar panels not only helps homeowners and businesses save on their energy bills but also contributes to reducing their carbon footprint and preserving the environment for future generations.
