Federal Tax Credit
Homeowners anywhere in the U.S. are eligible for the federal tax credit, which can be worth up to 30% of the total cost of your solar installation.
Under current law, the 30% tax incentive will remain in effect through December 31, 2019. After that it will drop down to 26% for 2020, and 22% through the end of 2021, after which the credit is scheduled to disappear.
It’s important to keep in mind that this is a tax credit and not a rebate, so you’ll need to pay taxes in order to claim this incentive. Check out our handy explainer for more details on how the credit works and how you can claim it.
According to the DSIRE database funded by the U.S. Department of Energy, there are a whopping 168 different state-level financial incentives for residential solar available across 43 U.S. states, along with 59 incentives available from local governments!
These incentives can be worth anywhere from hundreds to thousands of dollars. For example:
South Carolina offers a tax credit of up to 25% of the cost of solar installations worth up to $3,500 in a given tax year
New Jersey offers a full exemption from the 7% state sales tax on solar equipment
Utah offers a tax credit of up to 25% of the cost of solar installations, with a $2,000 maximum
New Hampshire offers rebates of $0.50 per watt for residential solar, up to a maximum of $2,500
Oregon offers a tax credit of $1.50 per watt of residential solar installed, up to $6,000 (of which $1,500 may be claimed per year)
Some states have also created special annual targets for solar purchasing by utilities which must be met with Solar Renewable Energy Certificates — SRECs — that can be bought and sold on an open market. Because monetizing these certificates can be uncertain and time-consuming, Mosaic is helping homeowners in several states turn these SRECs into a simplified, up-front payment potentially worth thousands of dollars.
As you can see, you can find extra incentives to go solar in every part of the country, and it can really pay to be aware of them. You can enter your ZIP code into DSIRE to find out what’s available where you live.
Ask the Experts
If these incentives, rules, and overlapping jurisdictions seem overwhelming, don’t worry – Mosaic can connect you with local installers who can walk you through the ins and outs of the policies that may apply to you and how they can impact your solar bottom line. Click here to get started.