Tax Credit for Solar Panels

 

As the cost for solar panels have come down in price, rebates and incentives have also grown so that more Americans can take advantage of this alternative energy source. How to search for a tax credit for solar panels or a rebate is relatively easy. Let me walk you through it.

First, decide what type of solar panel system best fits your needs. You can get online bids or contact a local installer. An online solar calculator can help estimate the size and cost for your home or your building. Here’s a good one: My Solar & Wind Estimator 

Ideally, you want to get at least three solid quotes from reputable installers before moving ahead.

Once you have an idea of the type of system you’re going to install, there are a few areas you should investigate for tax credits, rebates and incentives.

Solar Federal Tax Credits

Currently there is a 30% tax rebate for solar panel installation with no maximum amount. Any U.S. taxpayer is eligible for this rebate with the purchase of a solar system (or other renewable energy system).

For the details of this program, see Residential Renewable Energy Tax Credit under our Federal Incentives page.

Solar State Tax Credits

Next, go to your state listing and check to see what state tax rebates or incentives are offered. Many states have programs in place, such as property state tax exemptions for installed solar systems.

Under the listings, look also for your local city and energy supplier. There you will see if there are any rebates you can add. Many electric companies have their own programs in place. If you don’t see yours on the list, call them anyway. They could have added one very recently.

Energy Star Solar Rebates

If your home qualifies as “green-built” you might get an additional $500 bonus from Energy Star. Learn more about Energy Star here.

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