While many people have solar panels installed on their roofs to become more energy-efficient, another major reason why people go solar is for savings.
Solar panels can save you money on your energy bill over time. Plus, many states offer incentives for installing solar panels. So while installation can be a hefty cost upfront, you can take advantage of savings and reduce your tax liability to reduce your overall costs.
If you’re considering solar panel installation for your home, you may be interested in what residential solar incentives are available. Design 1 Solar Group serves the following 11 states. Here’s a rundown on the incentives you can expect for each state.
Arkansas is one of a few states that has no state-level incentives, rebates, or tax breaks for installing solar panels.
Many power companies in Georgia offer net metering, which means that if your solar panels generate excess energy, you can exchange it for credit on electric bills. Each power company is different, though. For example, Georgia Power is limited to a total capacity of 32 megawatts or 5,000 participants.
Georgia also has net billing, which offers a reduced credit on a customer’s energy bill.
Kansas is unlike other states in that it does not promote solar energy as an option for renewable energy. The state is pretty much anti-solar. It has not only repealed the state’s green energy initiative but also allowed energy producers to tax homes that have solar panels.
Despite this, the state does allow for a couple of residential solar incentives. One is net metering, while the other is a property tax credit. This allows homeowners to save money by not adding the value of their solar energy system to the value of their homes, which means they save money on property taxes.
Like many other states, Kentucky offers net metering. There is also an extra $500 tax credit available. Customers of the Tennessee Valley Authority get a $1,000 rebate, as well as a special price on electricity.
Mississippi does not have a statewide net metering policy, but many utility companies in the state do offer it. The Tennessee Valley Authority utility is available in Mississippi, so customers may be eligible for the $1,000 rebate and special electricity price.
In Missouri, residential solar incentives will depend on your utility company. Ameren Missouri offers a 25-cent/watt rebate, while the City of Columbia Water and Light provides a 50-cent/watt rebate for systems under 10KW.
Ohio, like many other states, offers net metering. It also offers solar renewable energy certificates (SRECs) that you can sell for extra cash. You will receive one SREC for each megawatt-hour of electricity your solar panels produce.
While there are no state rebates for solar panels in Oklahoma, the state does offer net metering.
In Tennessee, residents can save money on solar panels if their utility is the Tennessee Valley Authority. They can receive a rebate and special pricing on electricity.
In Texas, rebates are available for various utility companies, such as Austin Energy, CPS Energy, Guadalupe Valley Electric Cooperative, and the City of Sunset Valley. Net metering is also available, although there is no statewide policy.
While there are no state incentives, West Virginia does offer net metering.
Will There Be Solar Incentives in 2021?
Getting ready to do your 2021 taxes? If so, you’ll be happy to know that there are also federal benefits available for those who install solar panels on their home. On top of residential solar incentives such as state tax credits and cash rebates, you can also receive the federal investment tax credit (ITC).
This credit is available for solar systems installed in a residence by December 31, 2022. It works by giving you back 26 percent of what you paid for solar. It is a tax credit—not a deduction. This means your tax due is offset, and you may receive a refund.
In 2022, the tax credit is also expected to be 26 percent. However, it will drop to 22 percent in 2023 and go away in 2024. So if you have solar panels, be sure to take advantage of these residential solar incentives.
Contact Us Today
Ready to go solar? There may be benefits to doing so, depending on where you live. Design 1 Solar Group can help you understand which residential solar incentives are available. Get the most beneficial solar panel system for your home for the lowest cost. Contact us today to learn more.