Incentives for Using Solar Energy in Your Home
There are several incentives, rebates, and tax credits that make switching to solar even more affordable. Thanks to the work of the federal government, state lawmakers, and partnerships between local utility companies, homeowners can save thousands on the cost of their installation with these residential solar incentives.
At Earthlight Technologies, we work with you to find and apply for these rebate programs. If you have any questions, or want to check your eligibility for a specific program, call us at 866-499-3084.
Popular Incentives and Tax Credits for Solar Panels for Homeowners
Federal Solar Tax Credit
Homeowners can receive a federal tax credit for 30% of the total system cost. This credit is used in the same calendar year the solar system is installed and goes live. The credit can be enjoyed throughout the US, including CT, MA, and OR.
Net metering is a way for utility companies to track how much excess energy you sell to the grid. This can significantly reduce or even eliminate your electrical utility bill. Net metering rules can vary state by state, and is permissible in CT and MA.
Property Tax Exemption for Solar Energy
While adding solar panels can increase the value of your home, some states have laws that exempt a new installation from increasing your property tax. For residents in OR, MA, or CT, you don’t have to worry about rising property tax bill due to your solar installation.
Sales Tax Exemption for Solar Energy
In MA and CT, the state sales tax is waived on solar installations. That means you can save 6.25 percent in Massachusetts or 6.35 percent in CT off the total cost of panels, inverters, and materials for your home’s solar system. And since Oregon doesn’t have a state sales tax, you are already saving.
- Energize CT (Connecticut Energy Efficiency Fund)
- Connecticut’s generous rebate program, made possible by the Connecticut Energy Efficiency Fund, can help reduce the cost of adding solar to your home by thousands of dollars. Current rates based on generating capacity: $513 per kW (up to 10kW) and $400 per kW (10-20kW), with a max rebate of $9,130.
- Massachusetts allows you to sell your system’s solar renewable energy certificate (SREC) to local utility companies. SREC costs can fluctuate and are dependent on the size of your installation, but this incentive can generate thousands of dollars for you each year.
- Massachusetts state tax credit for solar energy
- MA has a 15% state tax credit for residential solar installations. However, the credit comes off the net cost of your system (minus the federal tax credit), and it has a $1,000 limit.
- Energy Trust of Oregon Incentive
- The Energy Trust of Oregon offers a cash incentive for Pacific Power and Portland General Electric customers. This incentive is paid to the installer and is immediately taken off the total project cost.
- Oregon state tax credit for solar energy
- OR currently offers a state tax credit of up to $6,000 to be taken over 4 years.