Top 3 Incentives of Solar Panels
The list of incentives that come with installing solar panels to your home is a long one. All of the incentives can be a little confusing with taxes, credits, rebates and exemptions. Here’s a down and dirty list that simplifies and highlights the top 3 incentives that actually make the difference.
Federal Solar Tax Credit
The Federal government is pushing for more renewable energy sources. Because of this initiative they are offering a substantial incentive program for new solar installations. If you install solar panels in 2020 you receive a tax credit for 26% of the total cost on install. For context, that comes out to be $2,600 for every $10,000 spent on your installation. This credit will drop to 22% in 2021. At the end of 2021 this offer is set to expire, so right now the sooner you act, the better for you. This federal solar tax credit doesn’t eliminate you from other incentives either which makes these systems extremely affordable.
Solar Renewable Energy Credits
Utility companies must purchase a set amount of Solar Renewable Energy Credits (SREC). The requirement varies from state to state as a part of their own renewable energy program. For every 1,000 kilowatt-hours (kWh) of electricity generated by your solar panels, you earn one SREC. These SRECs are sold to different utility companies.Think of the SREC market as similar to the stock market: Prices fluctuate as demand fluctuates.
Illinois’ SREC program is called the Illinois Shines program. This program provides payment for 15 years of your credits. Payment amounts vary, but you are always guaranteed a payment. The current payback per SREC in Illinois is $70.05.
Electricity Bill Changes
Out of all the incentives, the fan favorite is the change seen in your energy bill from the month your solar panels are installed. You’ll see the fastest drop in your electric bill when your panels are optimized to receive the most amount of sunlight possible on your property. At Landmark Solar, we know exactly how to ensure that your panels are receiving the most sunlight to start dropping your bill fast. The relief that from opening your electricity bill and seeing $14 instead of $300 is a driving incentive for solar panels.
The incentives for solar are truly endless and often come in the form of money in your wallet. Federal Tax Credits, SRECs and the changes in your electric bill are the three of the largest incentives. Contact us today to talk about what these incentives and so many others could look like for you!