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Writer's pictureBrian Harbin

Are There Government Rebates for Switching to Solar?

A passion for renewable energy is spreading through the United States, with 78% of homeowners saying that solar systems would be installed in their homes if cost was not an issue. The good news is that there are a number of government rebates for homeowners who switch to solar and the majority of people will just need to become aware of the one that is right for them.


According to a survey of more than two thousand homeowners, 97% of people think they would need at least $20,000 at least to have a solar system installed in their homes, which would make it far too expensive for them. However the reality is very different now in 2021 and solar is both more profitable and a good deal cheaper than most people realize.


Why solar is more affordable in 2021


Increasing competition amongst solar companies and improvements to technology have seen the cost of solar panels come down and in some states such as Arizona a 5 kW solar system can be acquired for less than $5000 if homeowners take advantage of government rebates.

Lower monthly electric bills will begin to materialize immediately for homeowners who install a solar system. There are more than 30 states in the US that make use of net metering, and homeowners with solar systems in those areas will also be able to make superb returns by exporting the power their system generates for additional money.


The majority of solar installations can be bought or leased without a down payment and with lower monthly payments than homeowners are currently paying for their utilities, and those savings begin straight away.


Government rebates, discounts and incentives


Different levels of government in the US offer a range of different options to save costs for homeowners who want to go solar.


The Federal Government offers the Residential Renewable Energy Tax Credit, which allows taxpayers to claim as much as 26% of qualified expenses if they invest in a solar system for their own home. Costs that are eligible for credit include on-site labor, piping and wiring costs and the assemblage and installation of the solar system. Some tax credits may be carried forward to the following year in the event that the full amount is in excess of the tax liability of the homeowner.

A number of states also offer incentives including tax credits for the installation of solar energy systems, which work similarly to that of the federal credit.


There are also a number of utilities and cities that offer people who purchase solar systems upfront rates, though these are now relatively rare because of the growing affordability of solar, and lawmakers are also increasingly aware that consumers can receive a terrific return on investment from solar without such rebates being a necessity.


In addition to the federal credit, excellent incentive programs are still offered by some states, such as the Investment Tax Credit offered by Vermont, which provides up to 30% of costs. $936 per annum can be saved by using various programs in New Jersey while residents of Alabama and Arizona can get an installation incentive of $1000 and ongoing benefits that can last for several decades.




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