Converting to solar might represent a significant investment, however, there are a variety of financial incentives that help cut down upfront cost and bring in big savings when tax season comes around. 

Below, Geneverse goes over federal and state incentives that homeowners with solar energy storage systems can take advantage of at the federal, state, local, and manufacturer/provider level.

Federal Tax Credit

The Investment Tax Credit (ITC) is available for solar PV systems installed from 2020 through 2032. Systems that were installed in 2020 and 2021 received a 26% tax credit while systems installed between 2022 and 2032 are eligible for a 30% tax credit. The important thing to note here is that there is no maximum amount that can be claimed. You can learn more about the federal tax credit by visiting the U.S. Department of Energy website. 

Those eligible for this credit can complete and attach IRS Form 5695 when filing federal tax returns – Form 1040 or Form 1040NR.

State Tax Credits

Depending on what state you live in, there may be tax credits and incentives specific to your state that will help you save on top of what you save with the ITC. Some states offer tax credits for solar system purchases. Certain states also offer property tax exemptions and sales tax exemptions related to solar energy system purchases. 

Refer to the IRS website for the latest information regarding the Residential Clean Energy Credit. Qualified expenses include:

• Battery storage equipment/technology (which begins in 2023)
• Geothermal heat pumps
• Fuel cells
• Solar electric panels
• Solar water heaters
• Wind turbines
• Contractor expenses/fees (including site preparation, assembly or initial installation)
• Permit fees
• Inspection costs
• Developer fees

State tax credits can be deducted from state taxes owed. States that do not offer tax credits or other incentives typically offer net metering programs that help solar energy system owners get credit toward their energy bill in exchange for excess energy produced.

State Government Rebates

Some states offer state government rebates for solar energy. This is typically a set amount of money that is given to people who purchase a solar energy system in addition to other solar technologies (such as solar batteries and solar water heaters).

Solar Renewable Energy Certificate

Solar Renewable Energy Certificates (SREC) are state-level solar incentives based on renewable energy certificates which represent each megawatt-hour generated from solar energy systems.

States that have SREC markets boast lower energy bills that come as the result of selling associated SRECs to local utility companies. The monetary value of SRECs is typically determined by supply and demand.

Local Utility Rebates

Some local utility companies may offer rebates for the installation of a solar PV system. Local utility rebates are subsidies excluded from income taxes. Typically, these rebates are subtracted from the total solar system cost (which is done before calculating solar tax credit).

Some solar energy system manufacturers and providers may also provide instant rebates or mail-in rebates at the time of purchasing their products and services. 

Power-Pillar ESS: Power for Good

Tax credits, rebates, and other financial incentives help make it easier and more viable to convert to solar – for everyone. At Geneverse we stack on the savings by also providing the most cost-efficient energy storage system available on the market. Fewer components. Easy installation. Own your power while getting the fastest return on your investment possible with Geneverse.

energy. Our PowerPillar ESS integrates solar power, battery storage, not to mention grid and generator power sources that help our customers get the most out of their energy storage investment – all at the most competitive pricing on the market. We craft complete home energy systems that power energy independence rain or shine in addition to portable solar products that provide decentralized power during emergencies and unforeseen circumstances. Learn more about Geneverse and how we can bring protection and security to your family/household by visiting our website today.