How do Solar Rebates Work?
One of the main perks of solar panels, aside from their environmental benefits, are the financial savings that homeowners get. However, a lot of these rebates and credits are incredibly confusing, and it can be difficult to understand exactly what you’re saving and how much you’re saving. We’re giving you a breakdown on a few of the most common savings programs below.
Federal Solar Tax Credit
This credit means that when you install solar panels, 30% of the total cost of your project, including equipment, permits, and installation fees can be claimed as a credit on your federal tax return. For example, if you spent $10,000 on your solar system, you would owe $3,000 less in taxes the following year. This credit expires in 2022, so take advantage of it while you can!
California Solar Initiative Rebates
CSI rebates vary based on multiple factors, including location, system size, performance, and installation factors. This program pays solar customers an incentive that’s tied to system performance. The incentive is paid as either an upfront lump sum payment based on expected performance or as a monthly payment based on actual performance, spanning a five year period.
If you have a system that is greater than 30 kW in size, then you are required to use the performance-based incentive, which is one factor that makes this more ideal for larger commercial projects.
If you are interested in installing solar panels on your home or business and want to learn more about all of the benefits and incentives, then contact Energy Concepts today to request more information. We are available, in store, through the phone or at our website to assist you in making the best decision for your household!
We are ready to put our decades of experience in solar energy to work for you!