Solar Power Rebates – What are my Federal, State, and Local incentives?
Solar Power Rebates are an added benefit when transforming your home into using solar power energy. The U.S. Treasury IRS provides a rebate (money given back to the customer after a purchase) and energy tax credit for those who install a solar power system, as motivation to use renewable power as opposed to conventional energy. Although there is a lot of paper work involved when receiving the Federal Solar Power Rebate, saving a total of 30-60% on installation costs, depending on the system and location of your home, rebates alone prove how solar power energy is a great investment for you and your home.
As you begin your research on solar power, keep in mind the following questions: Does my state also have a sales tax incentive? (If so, ensure that it will not conflict with the Federal solar power rebate). Does my electric or utility company have any type of rebate or tax incentive? (Some may pay you if you were to store extra energy within the electrical grid). Will my property taxes decrease when using solar power? Furthermore, does my city or state have incentives specific to “green building?”
Currently, homeowners will receive a 30% rebate through the Federal Government if making the switch to solar panel in their home (installing and operating solar systems), which is stated in the Energy Policy Act of 2008 and the Energy Improvement and Extension Act of 2008. The rebate includes both the materials purchased and the work involved for both new and existing homes (excludes rentals), and will end on December 31, 2016. It is best to check the exact timing of when the 30% rebate will be applied, in accordance to any other rebates or credits you use. Most often, the 30% is applied after all other solar power rebates are used. Individual states provide rebates as well, usually in regards to the installation costs. These state rebates can go as high as $26,000. It is important to do your research and planning when reviewing what rebates you are eligible for, both Federal and State, so that you receive the maximum amount back for using solar power.
There are currently 29 states that offer some types of solar rebate. Solar power rebates vary from state to state, so it is important to research what is available depending on your location. Some states offer better rebates than others. For example, New Jersey offers rebates to cover up to 10 kW home solar systems. Massachusetts provides great rebates, in which the rebate amount is altered depending on the homeowner’s income and the value of their property. On the other hand, some states are not as generous or plentiful. Minnesota’s funds for solar rebates have been depleted and there is a current waiting list. Texas does not offer any rebates, as it is up to the actual power company. For a complete listing by state, visit www.green-planet-solar-energy.com/solar-power-rebate.html.
While deciding what type of solar power system you will install, keep in mind that you will receive even more benefit if you were to connect your solar system to your electrical grid. This type of system will store the excess energy, which can be sent back to your electrical company, resulting in an additional federal rebate.
When filing for taxes, you will use the IRS form 5695 (for Residential Energy Credits) in order to claim your rebate. To view the form, navigate to the following link: http://www.irs.gov/pub/irs-pdf/f5695.pdf.
For complete information on solar power rebates, visit http://www.dsireusa.org