Investing in a solar solution for your home is not just a way to offset your carbon footprint. It is how you can dramatically reduce your own energy costs and even get off-grid. Say goodbye to power outages and hello to consistent energy that is entirely your own.
An average solar panel solution can cut an estimated $1,100 every year on your electricity bills. Still, you don’t solely have to look at energy savings to help you manage the cost. There are three options available to you so that you can afford a great solar system for your home:
1. Solar Company Payment Plan
The first great way to offset the costs is to keep financing in mind when searching for the best solar companies near me. That way, you can get full solar panel systems as well as solar batteries at affordable rates. Some companies will offer great offers like zero money down, with a 2.99% APR /25 yr. and throw in a Tesla Powerwall battery backup battery. Check to make sure that the solar solution has a warranty covering this period, so you can rest easy knowing you have invested in a quality solution that will save you money year after year.
2. The Federal Solar Investment Tax Credit (ITC)
The federal Solar Investment Tax Credit (ITC) has been around in some form since 2007 and has been an extremely popular incentive since its inauguration. New solar owners can currently deduct 26% of the cost of the solar system from their taxes. By 2021 this will drop to 22%, and by 2022 (and presumably longer, though it hasn’t yet been extended), homeowners will be able to deduct 10% of the cost of their solar panels. Now is the time to invest in your solar solution!
3. The Residential Solar Tax Credit
States also have their own solar tax credits, which you would use to deduct from your state income tax. In Arizona, this tax credit is 25% of the solar panels’ cost, up to $1000, which is then taken off your personal income tax the first year you install the system. Solar panel costs and property value increase is also exempted from tax in Arizona.
Other sunny states go even further. California is a leader when it comes to solar solution incentives. The Property Assessed Clean Energy (PACE) tax credit is one of the best in the country. It even offers the Home Energy Renovation Opportunity (HERO) financing program, allowing homeowners to pay for their solar panels and batters back to the state through their property taxes, rather than upfront. California also has a net metering program, meaning you can earn bill credits from your utility provider for selling energy back to the grid from your solar panels. For those to income-eligible and single-family homeowners looking to install solar panels, there is also the Disadvantaged Communities – Single Family Solar Homes (DAC-SASH) program to help you with your financing.
With all of these options, you can usually bring down the cost substantially, typically from $2.79 per watt without any incentives down to $2.00 per watt with the incentives.
