Government incentives for installing solar panels

Government Rebates and Tax Credits

There are a number of remarkable incentive programs that have been introduced by local, federal and state governments for individuals who agree to install solar panels to generate electricity for their household using the limitless energy of the sun. These incentives have been introduced in order to encourage more and more people to shun the conventional power production and move towards the clean and environmentally friendly generation of electricity with the help of solar energy. What may seem like a significant investment may actually turn about to be a great source of profit for those who purchase solar panels for their homes and businesses.

State and Local Rebate Programs

A number of cities and states across the world have established various programs for the benefit of individuals who plan to produce their own electricity with the help of photovoltaic panels. The main purpose of these programs is to encourage more and more people towards power independency as the sun is a source of limitless and clean energy. The amount of tax credits and rebates that are offered to these individuals may vary from state to state and country to country, which is why it is essential to find out everything about the credits and rebates that you are eligible for, prior to the installation of the solar panels. In some cases, these incentives can allow you to cover up to 40% of the total cost of the purchase and installation of the solar panels, thus allowing you to save a considerable amount of money. It is important to remember that majority of these credits and rebates are allotted for individuals who can adopt solar power early. This is because the amount of the rewarded funds drops over time.

Federal Tax Credits

There are many solar power incentive programs that are offered by the federal governments of a number of countries all over the world. Some of these incentive programs can entitle you to a 30% ITC (investment tax credit) on the total amount of money spent on the purchase and installation of the solar panels.

Renewable Energy Credits

RECs are gaining immense popularity these days as they are some of the most reliable tradable commodities in the field of renewable energy sources. RECs, also known as Renewable Energy Credits were introduced to give value to clean power production using natural sources such as solar energy.

More information about the Solar Incentive Programs

The incentive programs tend to vary from state to state. you can find out more information about the particular programs in your region by checking out the Database of State Incentives for Renewable Energy (DSIRE).

In the state of California, the California Solar Initiative is in charge of the rebates. These rebates also depend upon the actual size of your solar project. You may be able to qualify for the Performance Based Incentive or the Expected Performance Based Buydown. Check out the different governing bodies in your own state to find out more information.