Solar Power Financial Incentives Primarily In The Form Of Tax Credits And Rebates
Let’s take a look at three primary ways to make or save money with solar panel financial incentives. With current rebates and credits, there has never been a better time to go solar!
Number one on the list of solar power financial incentives is the federal tax credit
The Federal government is incentivizing home and business owners to go green. They currently offer a 30% tax credit on the full cost of the system.
How does this work? It depends on how you pay taxes. If you are on a regular salary, and your taxes get paid automatically with every pay check, at the end of the year you have have paid a certain amount in taxes. Out of the federal taxes you have paid, you will get 30% of the system cost back from the government when you file your taxes.
If you have paid in (or owe) less than the credit amount, the remaining balance can roll over to the following year.
Are you a contractor or self employed?
If you are a contractor, or self-employed, and you only pay taxes once per year, then you will deduct 30% of the system cost from what you owe the federal government.
If you have paid in (or owe) at least the full amount of the credit in that year, you will get back (or deduct from what you owe) the full amount in a single year. If you have paid in (or owe) less than the credit amount, the remaining balance can roll over to the following year.
At Number Two On the list of solar power financial incentives is the State Tax Credit (SC)
The South Carolina government is also incentivizing home and business owners to go green. This is good news for you! The state currently offers a 25% tax credit on the full cost of the system.
The South Carolina government is also incentivizing home and business owners to go green. This is good news for you! The state currently offers a 25% tax credit on the full cost of the system.
How does the state credit work?
It is paid back to you, or deducted from what you owe much the same way as the federal tax credit. The only difference is how much of this credit you can claim in any one year.
Finally at Number Three On the list of solar power financial incentives is Free energy for 25+ years
The harsh reality of living in the modern world is if we want to keep the lights on, we need to pay someone for the electricity needed to do that. This is something we cannot escape, and it is a monthly expense that continues to rise year after year.
Some utilities in the state of South Carolina are averaging more than 4% increases every year! At that rate, if your average bill today is $200, in 10 years from now it will average $310 per month, and you will have spent more than $30,000! And for what? Just to keep the lights on.
10 years from now, considering your utility bill will have likely increase 4% each year, you will probably have spent more than $30,000! And for what? Just to keep the lights on.
There’s a better way—become your own utility.
Going solar will free you in whole, or in part from your monthly bill for 25+ years. Wouldn’t you rather put that $30,000 in your own pocket, rather than handing the money to your utility company? Not to mention that solar panel systems increase the value of your home. In fact, that could easily be number four on the list of solar power financial incentives. We could go on about the benefits of solar. However, if you have further questions about solar energy and solar panel systems, check out our Solar FAQs. And, as always, feel free to reach out to Firefly Solar with any questions.
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