It’s never been a better time to go solar, thanks to an array of financial incentives. With a combination of tax credits and grants in your area, you can realize the dream of a solar home at ease. Here’s all you need to know:
Financial Incentives
Maryland Customers
For residential solar power system installations in Maryland, you can avail federal tax incentives of up to 30% net cost of the system. Further, under the Solar Energy Grant.
Program, with a maximum cap of USD 10,000, you get:
- USD 1.25/W for the first 2,000 W capacity
- USD 0.50/W for 2,001-10,000 W capacity
- USD 0.35/W for 10,001-20,000 W capacity
Residential clean energy grant program -
This MD solar rebate program is beautiful in its simplicity: If you install a solar energy system, Maryland will pay you $1,000. As easy as that. Just make sure your system is smaller than 20 kilowatts (kW), is located at your primary residence, and that your installer has the standard NABCEP certification.
Solar Renewable Energy Certificates (SREC) -
Maryland has set a renewable portfolio standard goal to produce 2.5 percent of its electricity from solar resources in 2020, and you can get paid to help. Under this program, you are granted one Maryland SREC for each megawatt-hour (MWh) of clean electricity your panels produce, which you can then sell in the SREC market.
Maryland solar power tax benefits -
As if the grant and credits above were not enough, Maryland also gives you a few tax breaks so you do not have to worry about your tax bills going up as a result of going solar. Thanks to the Property Tax Exemption for Solar and Wind Energy Systems, you will not have to pay any extra taxes on the increased value of your home when you go solar in Maryland. The Sales and Use Tax Exemption for Renewable Energy Equipment makes your purchase of your new solar energy system tax-free.
The federal solar tax credit -
Don’t forget about federal solar incentives! With the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 26 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), and that you must have enough income for the tax credit be meaningful.
DC Customers
Solar Renewable Energy Credits (SRECs)
D.C. has set a renewable portfolio standard goal to produce 5% percent of its electricity from solar resources in 2032, and you can get paid to help. Under this program, you are granted one D.C. SREC for each megawatt-hour (MWh) of clean electricity your panels produce, which you can then sell in the SREC market.
Low income residential solar
The Solar Advantage Plus Program is a truly incredible and unique incentive for eligible low-income D.C. residents. This first-come, first-served rebate program provides qualified applications with up to $10,000 to cover the full cost of a 3kW to 4kW solar system. Not only will participants own the system and the energy it produces, but they will also be able to cash in the SRECs discussed above.
Property tax exemptions
Thanks to the Solar Energy System and Cogeneration System Personal Property Tax Credit, you can also avoid paying any additional property taxes on the value you are adding to your house by installing that solar energy system.
The federal solar tax credit
Don’t forget about federal solar incentives! With the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 26 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), and that you must have enough income for the tax credit be meaningful.
Virginia Customers
The federal solar tax credit
Don’t forget about federal solar incentives! With the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 26 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), and that you must have enough income for the tax credit be meaningful.
Residential property tax exemption
All of the benefits of solar mean that installing a solar energy system on your home can increase your property value. That’s great news for homeowners who want to sell their property, but what about the impact of higher home value on your property taxes? Virginia has a law allowing localities to exempt or partially exempt solar from the property taxes residents pay. Note, however, that not all localities allow this exemption – currently only 30 do. If yours doesn't, you may wish to petition your Board of Supervisors to approve an ordinance to allow it.
Pennsylvania Customers
Residential solar power system installations in Pennsylvania can avail of multiple benefits -
Federal Solar Investment Tax Credit (ITC)
Owners of residential solar systems get a Federal Solar Investment Tax Credit (ITC) of 26% for installations done by December 31, 2022.
Solar Renewable Energy Credits (SRECs)
SRECs track the solar energy you generate. You generate one SREC for every megawatt-hour (MWh) of electricity your solar energy system produces. In Pennsylvania, the SRECs can be sold to utility companies through the state’s SREC market. An SREC has a useful life of three years, which means that the SRECs generated in 2020 can count towards 2020, 2021, or 2022.
Philadelphia Solar Rebate Program
The Philadelphia Solar Rebate Program allows the residents of Philadelphia to get a $200 rebate for every kilowatt (kW) of solar power installed if they fulfil the following criteria:
- Installed solar on their property located in the city of Philadelphia.
- Have received permission to operate from PECO on or after July 1, 2019.
- Be current with or in a payment agreement for all taxes and other indebtedness to the city.
- Do not have any unresolved building code or other property-related code violations.
Costs
The cost of a solar electric system can vary significantly depending on the amount of power required. A home with a USD 50/month electric bill will require a completely different system than one with a USD 500/month electric bill. Therefore, the cost of a solar electric system can range anywhere between USD 10,000-100,0000.
Financing
Many homeowners finance their systems with funds from a home mortgage or home equity line of credit. Loan payments are frequently similar to or less than what you’d pay to the utility provider. Plus, you get to own the system, increase the value of your home, and insure yourself against rate hikes in the future.
Renewable Energy Credits (RECs)
Utility companies are required to generate a part of their power through a renewable source. This share is called the Renewable Portfolio Standard (RPS). Your utility provider can purchase the extra solar power you produce and give you Renewable Energy Credits (RECs). If your system produces a certain number of RECs in a year, it can be traded on the open market to help offset the system ownership costs.
Advantages of RECs
With RECS, you can:
- Insure yourself from rising energy costs and blackouts
- Benefit from government grants and tax credits
- Use the net-metering law to cut down on out-of-pocket utility expenses
- Minimize maintenance costs
- Decrease your carbon footprint and help protect the planet
Energy independence
Did you know that over the last 3-4 years, residential electricity rates have increased by 30-60%? Most experts agree that the rates will continue to climb, at an even higher pace than inflation.
Here’s a history of Pepco electricity rates in the state of Maryland:
Year | Electricity Rate | Electricity Rate |
---|---|---|
1998 | 6.15 | – |
1999 | 6.35 | 3.25 |
2001 | 6.33 | -0.31 |
2002 | 6.22 | -0.74 |
2003 | 6.38 | 2.57 |
2004 | 7.46 | 16.93 |
2005 | 9.12 | 22.25 |
2006 | 11.24 | 23.25 |
Being an energy producer instead of a consumer, you can lock in power at a fraction of the current charges and protect yourself from rate hikes in the future. With a solar power system, you can not only free yourself from power uncertainties but also the instability of global energy markets.
Solar power is cheaper than utility power
Installing a solar power system is equivalent to prepaying for 40 years of power at a fraction of the cost you currently pay. The cost/unit of energy you pay now is higher than what you would pay with solar. As rates increase in the future, this difference will increase, leading to even more savings over the lifespan of your solar energy system.
Contact Details
Find out if solar is right for you.
Contact us to get a free quote. contact@greenbrilliance.com