Advantages of Solar Energy
There are many great incentives to help you reduce the overall cost of going solar. It’s important to note that government policy affects the solar industry as well as the oil and gas industry. The fossil fuel industry, which includes some of the largest companies in the world, got a total of $5.9 trillion dollars in subsidies in 2020.
Solar industry subsidies, while not as large as the fossil fuel industry ones, are put in place to help you make the switch to clean energy– so make sure to take advantage of these great incentives and join the renewable energy revolution!
The Basics
As soon as your project is complete, all solar owners are eligible for three separate (totally unrelated) solar incentives: Solar Renewable Energy Credits (SRECs), the 30% federal tax credit, and net metering through your utility company.
SRECs:
These are your Solar Renewable Energy Credits, created as a result of your state’s Renewable Portfolio Standard. You can sell these credits on the energy market, like commodities, through a broker. We are happy to assist you with registration with our vetted brokers. You can register yourself with the information provided in your documents section, or reach out to us at [email protected] and we can assist you!
30% Federal Tax Credit:
This is the Federal Investment Tax Credit recently extended by the Inflation Reduction Act. To claim your credit, all you’ll need is your invoice and the IRS Form 5695. You’ll find your invoice in the documents section and a link to the form in our blog post about the tax credit.
Net metering:
This is the dollar-for-dollar credit (totally separate from SRECs) that your utility company will give you on your bill if you produce more solar energy than you use in any given month. Your utility company will install a net meter on your home after your solar project is complete so you will be set up for net metering. No action is required on your part. You’ll see the credits reflected on your utility bill when you earn them.
Multiple Levels of Incentives
Researching the solar incentives in Virginia – or any of the states we serve – isn’t time-consuming. There are five points you need to know:
Federal Incentives
There is a 30%Federal Tax Credit: This means you can deduct 30% of the total cost of your solar project from your tax liability.
HOAs
Some HOAs promote solar (others try to resit it and create all types of rules to avoid solar). Make sure to check that your HOA rules are related to solar PV, and not to solar hot water systems that are big and bulky compared to solar electric systems.
State Incentives
Solar Renewable Energy Credits (SRECs) are available in DC, VA and MD.
Utility Incentives
Depending on which utility you will interconnect your solar panels with, you will get access to different incentives and solar programs.
County Incentives
Every county is different, and some have property tax exemptions or other solar policies. Some cities have their own incentives unrelated to county incentives.
Grant
There are several grants available to go solar. Check out the REAP grant (Rural Energy for America Program)
Increase Your Home Value
Don’t delay your solar project any longer. With every passing minute, you’re losing money that you could be saving with solar energy. By investing in solar, you can not only add value to your home but also enjoy lasting benefits that will save you money for years to come.
Start generating your power and take advantage of the various financial incentives offered.
