Installing a solar energy system on your home is a worthy investment. However, this investment does come at a large price. Although your energy bills will be lowered for the coming years, you may need capital to install now. Local, state and federal governments have all recognized the importance of solar energy and are incentivizing these systems via tax breaks.
Figure 1: Solar Energy Incentives Across the American Southwest [10]
Local
Cities and counties across the American Southwest have tax incentives for solar energy systems. Just to name a few in California, the city of Glendale, Silicon Valley, and San Diego County all have tax breaks for homeowners that install solar energy systems on their property. To find tax incentives for your local area, there are websites that have compiled many local tax breaks for solar energy systems. Database of State Incentives for Renewables & Efficiency (DSIRE) is a North Carolina State University database which compiles state and local government tax incentives and law relating to solar power. Many solar power companies use this database than their online cost of solar power calculators. Contacting your city and county governments, along with a tax accountant, about tax breaks and incentives will give you even more insight on the potential tax breaks you can be receiving.
State
The states in the American Southwest are embracing the use of solar energy. The governments of these states realize that solar energy is not just the future, but also a booming industry which they want to be a part of. Several states have will refund you the state sales tax to incentivize solar energy. This means a bigger tax refund check the year after purchase. Others will rebate part of the cost of your solar energy system. Below is just some of the many rebates by state that can be found.
Arizona:
Arizona is one of the most friendly states to solar energy, which is good for you. Arizona will waive both the sales tax on your solar energy system along with any additional property taxes occurred from the property improvement caused by a brand new solar energy system. The state will also pitch in to help with the cost of the solar energy system. All of the rebates, incentives, and programs for the state of Arizona can be found through this link. (Click apply filters, Technology, Renewable Energy, Solar, All Solar) and (Click apply filters, Eligible sector, Residential, All Residential)
California:
The state of California has the most amount of local incentives, but there are still some programs at the state level. California will not raise your property taxes because of an upgrade made by a solar energy system. All of the rebates, incentives, and programs for the state of Califonia can be found through this link. (Click apply filters, Technology, Renewable Energy, Solar, All Solar) and (Click apply filters, Eligible sector, Residential, All Residential)
Colorado:
The state of Colorado will help you save some money when tax season comes around. The state will rebate the sales tax for the solar energy system along with not charge additional property taxes caused by the property improvement of a solar energy system. All of the rebates, incentives, and programs for the state of Colorado can be found through this link. (Click apply filters, Technology, Renewable Energy, Solar, All Solar) and (Click apply filters, Eligible sector, Residential, All Residential)
Hawaii:
The Aloha state may not give any tax breaks for your solar energy system, but they will help pay for it. The state will pay up to 35% of the cost of the solar energy system that you install on your property. All of the rebates, incentives, and programs for the state of Hawaii can be found through this link. (Click apply filters, Technology, Renewable Energy, Solar, All Solar) and (Click apply filters, Eligible sector, Residential, All Residential)
Nevada:
The state of Nevada may not be the best place to live for solar energy, but the state government will still help their residents out. As with many states, Nevada will not charge any additional property taxes on your property for improvements made by the addition of a solar energy system with a few additional requirements. All of the rebates, incentives, and programs for the state of Nevada can be found through this link. (Click apply filters, Technology, Renewable Energy, Solar, All Solar) and (Click apply filters, Eligible sector, Residential, All Residential)
New Mexico:
New Mexico fits in the middle of the road when it comes to solar energy incentives in the American southwest. The state will not charge you any additional property taxes caused by improvement from a solar energy system. All of the rebates, incentives, and programs for the state of New Mexico can be found through this link. (Click apply filters, Technology, Renewable Energy, Solar, All Solar) and (Click apply filters, Eligible sector, Residential, All Residential)
There are many additional rebates and tax breaks that you can get. All you need to do is search your state in the DSIRE database which can be found here.
Federal
The federal government also helps out for you to install a solar energy system on your property. Although there is no longer a federal tax break, there are still many programs that you can take advantage of.
If you are unable to pay for a solar energy system even with these state and local tax breaks, there are programs that are able to help. Through the Federal Housing Administration, loans can be obtained to pay for a solar energy system. These loans will allow homeowners like yourself to spread the cost of a solar energy system for up to 20 years. With loans up to $7500, you may be able to have your entire solar energy system paid for with zero out of pocket.
With all of these great incentives, the only question is, what are you waiting for? Solar energy is the future and we want you to be on the leading edge.
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