Did you know there are so many benefits to owning your solar panel photovoltaic system versus leasing? The main reason is because you get to keep all of your incentives, which can add up to create a speedy ROI when going solar. Here are some of the incentives available:
Net-Metering
One-for-one net-metering is a great incentive that your electric utility may offer. The purpose of the net-meter is to measure power “delivered” (DEL) to your house or “received” (REC) by the utility from your solar array. At the end of the month, excess kWh credits are used to offset power delivered to your house. The “net” power delivered to your house forms the basis for calculating your electric bill for that month. At the end of the month, if you generated more power than you consumed, excess kWh credits carryover to the next month. The monthly carryover then continues month after month.
30% Federal Investment Tax Credit (ITC)
A tax credit is a dollar-for-dollar reduction in the income taxes that a person claiming the credit would otherwise pay the federal government. The Energy Policy Act of 2005 created the ITC and in August of 2022 President Biden signed the Inflation Reduction Act (IRA) that extended the ITC to 30% until 2032 for residential solar. The ITC will then step down to 26% in 2033, 22% in 2034, and then 0% in 2035 and thereafter.
Illinois Solar Renewable Energy Credits (SRECs)
In Illinois and other select states, SRECs provide an outstanding solar incentive that helps an owner recoup a solar system’s investment. SRECs have been created to help States meet Renewable Portfolio Standards (RPS) which set goals for generating a percentage of that state’s overall electricity from renewable energy. In Illinois, for example, an SREC can potentially cover 30% to 50% of the total solar investment.
Stateline Solar customer’s own their solar arrays and get to take advantage of these incentives if they are applicable to them. To verify what incentives apply to you be sure to contact your tax preparer or accountant when deciding to go solar. If you’re an ag or business owner, there are even more incentives that could apply to you.
Want to learn more about how we can help you achieve your energy goals? Contact us today!