Many homeowners in Allentown, PA have realized how cost effective it is to install a solar system for their homes. For the residents in Pennsylvania, the Solar Tax Credit of 26% is the best choice in 2020. The tax credit is scheduled to be at 22% for 2021 and 16% for 2022. Below are more details on the solar benefits that you can enjoy.
Solar Investment Tax Credit (ITC)
The federal solar tax credit is by far one of the best incentives for installing a solar system in Pennsylvania. It is officially termed as the solar investment tax credit (ITC) and is a program that enables business owners and homeowners to deduct 26% of the installation cost of a new solar system from their federal taxes. Based on the size of your new solar system, you could be saving thousands of dollars when you go solar.
The downside is that the federal solar tax credit is drawing to a close. Solar system installations completed in 2019 are still eligible for the entire 26% tax deduction. However, future installations will only qualify for a partial credit. By the year 2023, residents may not receive any federal credits at all if they switch to solar.
Cheaper Energy Bills
A study has shown that the price of electricity in Pennsylvania is the 15th highest in the United States. Unfortunately, the price is just going to increase as time goes by. Guard your wallet against the ever-rising electricity costs by utilizing the clean and free energy generated by solar panels. To save even more money, you can also invest in a solar backup battery. This will bring your energy costs down even more while ensuring that you will always have power.
Net metering is a program that allows you to use electricity from the utility grid whenever electricity is in low supply, such as at night or when the sky is cloudy, and input excess electricity produced by your solar system back into the grid. At the end of each year, you stand to receive credit if the excess electricity you provided is larger than the amount you drew from the utility grid. This means that you get a cheaper electricity bill. It is even possible to get no electricity bill! To enjoy the solar benefits of net metering, all you need to do is install a grid-tied or hybrid solar system.
Solar Renewable Energy Credit (SRECS)
The Commonwealth of Pennsylvania strongly encourages utility companies to generate or purchase electricity from sustainable sources. In order to achieve this, utility companies purchase credits from the solar systems of residents. This program is called Solar Alternative Energy Credits (SAECs). For megawatt-hour (MWh) of energy generated by their solar system, residents receive one credit. Credits are currently worth $20-40 each but they can be accumulated to allow you to receive other incentives for going solar. Do note that SREC rates may vary depending on the season, the number of credits in supply and the SREC rates in other states. With so many great incentives, there is no reason not to go solar. Don’t wait, install a solar system in your home today!