The Federal Income Tax Credit is valued at 30 percent of your total solar system cost. A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to next year. You should check with a tax adviser to make sure you can claim the entire value. This incentive reduces from 30 percent to 26 percent in 2020 and 22 percent in 2021.
Net metering is a contract that you sign with your utility that allows you to trade your power with them at retail rates. You get credit on your bill for your excess kilowatt hours (kWh) when your system is producing more than you consume. At night or when your system isn’t producing, you buy power from the utility like you do now. Typically, in New England we produce more than we consume during the summer and build up credits. Then during the less-sunny winters we use the accumulated credits.k
Installing a solar energy system can increase a home or commercial building’s value. A recent study shows that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement…
According to the Department of Energy, people are willing to pay a $15,000 premium for a home with solar.
Solar is an investment with very little risk. Markets are very volatile, and putting your money into solar panel can pay dividends better than most stocks.
State rebates are available in most New England states. The state of Connecticut offers a rebate of over 10% of the cost of the solar system. Commercial and other large systems may receive a 15 year payment based on the amount of solar energy generated.
Low-interest loan payments from credit unions and banks for adding solar to homes makes going solar even easier. Commercial, municipal and non-profits can use power purchase agreements (PPAs) to install solar with no up front cost.
