Going solar usually entails an average of $20,000 for the parts and installation. To offset this problem, however, the government has come up with incentives that could make using renewable sources of energy such as solar power more attractive to homeowners and businesses. They come in the form of solar power rebate and tax credits.
Who Can Get Solar Power Rebate?
You can get unlimited tax credit for using alternative, renewable sources of energy such as solar. The law mandates a rebate of 30% the final installation cost, no ceiling, for solar power systems put up in the United States after 2009 up to year 2016. Prior to this law, a ceiling price of $2,000 was set.
On top of these federal solar power rebates, you can avail of the state incentives available in your area. The state of California, known as the biggest user of solar in the country, offers state rebate programs for installations on both new and existing buildings through the California Solar Initiative. Florida offers as much as $4 per watt for different solar systems and heaters. Colorado gives a $2 per watt upon installation and a succeeding $1.50 per watt as renewable energy incentive to maximize the power that can be generated in homes with more than enough sunlight.
Massachusetts can pay up to $20,000 in solar power rebate cash, depending on your property value and income. Other states have different incentive schemes for going solar, and you can see what applies to you on the Database of State Incentives for Renewables and Efficiency (DSIRE). In addition to these state incentives, you can maximize the financial benefits in your state by selling back your excess generated energy back to your power grid.
What Factors Affect Your Solar Power Rebate?
The government also considers the physical aspects of your installation before granting solar subsidies. Your system efficiency also dictates how much you will be able to get back so the geographical location of your house, weather conditions, obstructions, shadings, angle of installation, module efficiency, and other aspects that could affect your solar system efficiency also dictates the amount of subsidy you get for your system.