Government incentives for solar energy are a common thing today. Incentives are things that motivate you to do something. Solar energy is the number one developing source of electric power. It delivers positive impact to the environment and contributes to energy independence. In the USA and other developed countries such as Sweden, United Kingdom, Australia, China, etc. to encourage the expansion and promote the use of solar governments and other organization are offering various solar incentives such as financial incentives and solar tax breaks.
With government incentives, the net cost of solar energy systems is reduced by 30 to 50 percent.
Government Incentives – Solar Energy
Investment tax credit:
Governments provide this incentive to all owners of homes and businesses. It is also known as solar tax credit. It allows businesses and solar panel home system owners to deduct a certain value of their solar costs from their taxes.
State tax credits:
For installing solar power alone, some states allow you to deduct a portion of your solar panel system from state tax bill. This is similar to investment tax credit.
These amounts one is supposed to deduct vary by state.
Governments, companies, or other organizations provide solar cash rebates to promote solar energy.
These rebates are available duration of time and they are withdrawn when a certain amount of installations are met.
Rebates help reduce the cost of installing your system by 10 to 20 percent.
Solar Renewable Energy Certificates. (SRECs)
In some states legislation requires utility companies to have solar renewable energy certificates at a certain percentage of electricity production.
For solar panel systems, you are also given the certificates for a certain amount of power that your system produces.
To reach the amount of electricity production required to acquire the certificates, utility buy other peoples SRECs. You can make a lot of dollars by selling you certificates to the utility depending on the market.
Performance based Incentives:
In some countries, utility pay solar system owners per kilowatt credit produced by their system. Certain programs require you to install solar panels manufactured in your state to qualify.
PCBs don’t have to be sold through a market and can go in hand with net metering policies.
One may be legible for a solar subsidized solar loan to finance your solar panel system.
These loans are usually offered by both governments and non-government organization and sometimes even by your utility companies.
They are not always available.
Once you have installed your solar power system, eventually the value of your home increases.
In some states they do not include the system in your property tax assessment.
This means even if the value of your home has increased, the property tax bill will remain the same.
Net metering/feed in tariff:
This might the most motivating incentive of all times. It allows you to feed the utility grid with the excess power generated by your system. The utility company credits you for that.
During the nights and days of autonomy you can use the credit you generated to draw power from the grid for your home.
This type of government incentive allows business owners to write off their business value of their solar energy systems.
These help in reducing their taxes and accelerate solar returns on the investments done through solar leasing to home owners. All solar energy equipment is eligible for the cost recovery period of five years.
Accelerated depreciation can reduce this by 30 percent.
Solar cities initiatives:
Residents looking forward to building solar cities in their neighborhood are offered finances that are subsidized. This type of government incentive varies from one country to another and from one project to another.
Energy storage subsidies:
Solar energy is more effective and more appreciated in places where there is no grid power. In places like this solar batteries are the most preferred way of storing your energy.
Government incentive programs provide solar rebates, grants and other subsidies to support the purchase of solar batteries for the systems which are off-grid.
Solar water pumps rebates:
Governments now than ever will appreciate anyone displacing diesel powered pumps and engines. The renewable water pumps schemes provide rebates to renewable equipment of water pumping systems.
Hot water rebates:
Apart from saving your energy by using solar to heat water, government generously offer tons of money to consumers on their initial cost of their solar hot water systems.
Government Incentives for choosing solar energy will vary from country to country and state to state. They also depend on the size of the system you have installed or want to install and the estimated amount the system is capable of producing.
You as a business owner or a consumer can both benefit from these generous offers by our government so search and know which ones are available in your country.
Thank you for reading
Solar pv technician and team member on: