Each day, we see and hear all the advertising both on radio and on TV regarding how cheap and sensible it is to install solar panels on your home. There are rebates talked about and some companies seem to imply that they will give them to you on a lease basis. So, aside from helping the environment and paying less for energy, are there any real incentives to installing solar on your home?
There are in fact rebates that you may be able to get from local power companies. Some local and municipal utilities will pay you rebates anywhere from $0.20 to $1.25 per watt of installed solar capacity.
In the case of Silicon Valley Power, it’s customers receive a cash rebate for every watt of solar power that they install up to 10 kilowatts. The catch is that as more people install solar the incentive decreases in value.
Los Angeles Department of Water and Power has a similar incentive plan that can give a homeowner up to $1500 back when installing a 6kW system. The value of this incentive also decreases as more people get solar installed.
Many cities and counties in California offer the Home Energy Renovation Opportunity. This program allows the homeowner to finance their solar installation and pay it back through their property taxes. There is also the net metering incentive in California. Net metering gives the homeowner bill credits from the utility company for their extra solar power.
There is also the Federal ITC (solar tax credit). The Investment Tax Credit, also known as ITC has been extended through 2021. The credit allows every homeowner who buys a solar panel system to benefit from a 30 percent discount on top of all additional state rebates and incentives.
When you add all that up it really does seem to make sense to install solar panels on your home. For more possible tax breaks and incentives, speak to a professional.