There are a variety of tax incentives available to homeowners who go solar. They range from state and local programs to subsidized loans for financing your new solar panel system. These incentives can add up to significant savings, so it’s important to understand them when you’re looking to invest in a solar system.
The 30% Solar Tax Credit
For homeowners who install a solar panel system, the federal government offers a generous tax credit. For example, if you pay for a solar panel installation that costs $10,000, you can deduct up to $3,000 from your taxable income. The tax credit isn’t a guarantee, but it can make going solar much more affordable.
The Residential Clean Energy Credit (RCEC) is also an excellent incentive for homeowners who go solar. This credit can be applied once, and it reduces your taxable income by a maximum of $3,000. Link : https://www.home-dzine.co.za/News/what-homeowners-need-to-know-about-solar-incentives.html
In addition to the residential tax credit, homeowners can also claim the state tax credit in some states. These credits are usually not worth as much as the federal credit, but they can add up to a substantial amount of money over time.
Property Tax Exemptions and Sales Tax Exemptions
Many states, including Minnesota, Missouri, Colorado and North Carolina, offer property tax exemptions for renewable energy systems that increase the value of your home. In addition, solar owners in these states don’t have to pay sales tax on their systems, which can save you a lot of money.