Residential Solar Federal Investment Tax Credit
Any purchase of a solar power system before December 31, 2022 results in a 26% federal tax credit making the Investment Tax Credit (ITC) the most important financial incentive for potential solar energy customers, and one of the most lucrative tax incentives across all categories. The ITC drops to 22% for 2023 and goes away completely for residential in 2024.
The Investment Tax Credit (ITC) For All States
The Investment Tax Credit (ITC) is based upon the amount of investment in solar property and can be carried back 1 year and forward 20 years. It is a dollar for dollar reduction in income taxes for those claiming the credit. Any structural roof work or tree trimming that prevents the system from being shaded can also be included in your overall credit. Check with your accountant and reference IRS form 5696 and Section 25 of the Internal Revenue Code.
Residential Financial Incentives for Alabama
Although Alabama does have state sponsored rebates and incentives, they are included in the Investment Tax Credit shown above.
Residential Financial Incentives for Georgia
Georgia has been one of the fastest growing solar markets in the country.
The Solar Power Free-Market Financing Act of 2015, also known as House Bill 57, was signed and passed on May 12, 2015. This Act enables solar energy procurement agreements (SEPAs) which lessen the impact of solar panel costs for homeowners across Georgia. The bill allows homeowners to finance the cost of construction of solar panels while paying back the investment over time through their energy savings from using solar. Contact Eagle Solar and Light to see how SEPAs can lower your utility costs.
Residential Financial Incentives for North Carolina
The Solar Rebate Program is helping accelerate the clean energy economy in North Carolina by providing a rebate on power produced by solar power producers. This has helped make going solar more affordable in North Carolina and will continue to influence the solar industry.
The solar rebate is divided per customer type: Residential, Commercial/Industrial, and Nonprofit. The rebate rate is different for each class and also contains a cap of revenue per customer. The rebate amount is based on watts produced by each customer.
The rate classes and rebate amounts/caps are as follows:
Residential: 60 cents per watt, up to $6,000.
Commercial/Industrial: 50 cents per watt, up to $50,000.
Nonprofit: 75 cents per watt, up to $75,000.
The Solar Rebate Program is a first come, first serve basis. Our solar representatives can help walk you through and handle the application process for the solar rebate program. You can also find out more information about the rebate program on the Duke Energy Website here.