Monday, October 10, 2016

5 Savings Benefits When Going Solar

Making the choice to switch over to solar power may seem like a big decision, but with the economic, financial, and environmental sense it makes, a growing number of people are taking the plunge. 

In fact, having a solar power system installed in your home has so many benefits that even the government offers tax credits to incentivize homeowners and businesses to switch over. Here are five ways you will save when you decide to go solar.

Federal Investment Tax Credit (ITC)

Perhaps one of the biggest benefits you’ll get for installing a solar power system is the Federal Investment Tax Credit (ITC). 

This benefit is worth 30 percent of the cost of your solar system, including labor, permitting, and engineering. The amount will be deducted from the amount of taxes owed by the system’s owner, but the tax credit is not capped. 

This means you can start out with a basic system this year and claim this solar tax credit, and then add on to your system next year, and still claim the credit. 

Keep in mind, however, that the government is reducing the credit value in the upcoming years, so get your system in sooner rather than later to take full advantage of this tax credit.

State Tax Credits

In addition to the ITC, several states also offer a tax credit for owners of solar systems. This is also usually in the form of a tax credit, with the amount deducted from your tax bill. 

Some states offer up to 25 percent or more, which means that you could save 55 percent in solar power tax incentives between the ITC and your state’s tax credits. Check your state’s policies and incentive programs to get the most benefits for installing your solar power system.

Cash Rebates

Sometimes a particular state, city, company, or other organization will offer cash rebates in order to promote the usage of solar energy. 

These rebates are usually capped and will end once a certain amount of solar panel systems have been installed. If you’re lucky enough to snag one, you could save up to 20 percent on your system.

Monthly Electrical Bill

Once your solar power system is installed and begins to generate its own solar power, you will see your monthly electrical bill decrease more and more, with some solar power customers claiming a nonexistent electrical bill some months.

Solar Renewable Energy Certificates

You can also make money with your solar power system through Solar Renewable Energy Certificates (SREC)’s. Basically, several states have passed legislation that require utilities to generate a certain percentage of their energy from renewable sources. 

These companies must obtain a certain amount of Renewable Energy Certificates, including SREC’s. As it turns out, your solar power system will produce several kilowatts each year, which are each associated with their own SREC. 

You can turn around and sell these SREC’s to utilities that need them to meet their requirement. An average solar energy system produces around five kW’s per year, which can be sold for anywhere from $50-$200. That’s a nice little chunk of extra change per year.

What are you waiting for? It’s time to find out how to get a solar energy system installed in your home. Learn just how much you could start saving by installing a solar energy system.

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