Gabrielle Anderson Release: November 26, 2022 Update: December 10, 2022
Before deciding to invest in residential solar systems, consider what incentives are available. Government incentives can help you save money and help you get started. And when considering installing a residential solar system, you can also take advantage of many government incentives.
Incentives vary from state to state and may include federal tax credits and incentives from your local utility. Solar rebates and tax credits can reduce the cost of your array by 30% or more. To find out which incentives are available in your area, visit the Database of State Incentives for Renewables & Efficiency (DSIRE).
In addition to tax incentives, some states have other policies that can make a solar system even more affordable. For example, if you live in New York, you may qualify for a state-wide net metering program that allows you to feed excess solar power back into the grid in exchange for credits on your utility bill. In addition, in most states, solar power systems are exempt from sales tax. This can save you over $1,000 on an average-sized system.
In the United States, solar tax credits have been instrumental in shaping federal policy incentives that promote clean energy. In addition to helping businesses and households reduce their costs, the Residential Clean Energy Credit is a long-term and stable financial incentive that allows businesses to invest in growth. In addition to being environmentally friendly, investing in solar also helps strengthen the economy and create jobs.
Whether you plan on installing residential solar panels or relying on solar power to offset your power bill, it's important to keep an eye on trade policy. While trade policy can help correct unfair trade practices, it can also have unintended negative effects. As such, a trade policy aimed at promoting renewable power is essential.