Solar Rebates, Incentives

Solar Rebates, Incentives

Incentives, Rebates, Tax Credits for Renewable Energy

You are eligible to receive income tax credits from the government AND cash rebates or energy credits from your local utility company when you install a solar panel or other renewable energy system. Depending on where you live, you could save 60% or more off the cost of installing solar panels. Rest assured, we can help explain the available programs and make the paperwork easy for you to get low-cost solar installation.

Federal Solar Electric Tax Credit

The U.S. Treasury allows Energy Tax Credits for home or business owner incomes. Taxpayers are allowed one tax credit equal to 30 percent of the qualified investment in solar electric panels, and another equivalent 30% credit for investing in a solar water heating system. Solar tax credits do not apply to solar heating for pools or hot tubs. Remember, always consult your tax adviser, and on your next income tax return take advantage of these solar tax credits.

Download IRS form 5695 for Residential Energy Credits

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment and labor are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner.

  • The tax credit covers all costs, including plans, permits, site preparation, equipment, wiring, labor and installation. Components such as roof decking or rafters that serve only a roofing or structural function do not qualify for the credit.
  • There is no maximum credit amount for systems.
  • If the federal tax credit exceeds the tax liability, the excess amount may be carried forward to the succeeding taxable year.
  • The home served by the system does not have to be the taxpayer’s principal residence.
  • 30% for systems placed in service through 2032