There are many valuable state and federal financial incentives to be aware of if you’re considering solar energy. Keep in mind that your installer must be on the Department of Environmental Protection’s (DEP) list of improved installers, which Bright Eye Solar is. We’ll take a closer look at some of the most significant financial and tax incentives for solar below.
Federal Tax Incentives for Solar
There is currently a 26% tax credit on the total cost of your solar energy system for both residential and commercial property owners. In other words, if your system costs $25,000, you’ll receive a federal tax credit of $6,500, reducing your net cost to $18,500. If you’re a business owner, you’ll typically see an even greater credit, which is yet another tax benefit of solar panels.
Renewable Energy Production Credits
Another significant financial solar incentive is the ability to earn net metering credits for the renewable energy you produce. You’ll earn one energy credit for every megawatt (MW) of power your system produces over the course of a year.
In Bright Eye Solar’s coverage area, a 7kW system typically produces eight energy credits per year. You can sell these credits at the going rate, which is currently around $50-100 per MW. That means you can expect to earn $400-800 a year from your 7kW system on top of what you’re already saving in energy costs.
Net metering credits are based solely on the production of your system and earned regardless of whether you use the energy or feed it back onto the grid for other customers. Best of all, we guarantee the annual production of your system or pay you the difference.
Other Solar Incentives You May Qualify For
You may also qualify for additional solar panel incentives depending on the factors below:
- The state in which you reside and plan to install your solar system
- Any current incentives that your electric utility company may offer
- Your financial status and eligibility for low-income applicants
- Availability of Property Assessed Clean Energy (PACE) financing
- Availability of United States Department of Agriculture (USDA) grants for commercial solar
Learn More About Financial Solar Panel Incentives
Interested in NJ, MD, and PA solar incentives for new residential and commercial customers? We’d love to speak with you about how solar energy can free you from your dependence on high-cost electricity. Complete the form below to get in touch with our knowledgeable team of consultants and installers.