Converting a household or commercial property to a sustainable solar system comes with the obvious benefits such as lower energy costs and an eco-friendly energy source. However, did you know that residents of Pennsylvania qualify for several incentives to switch to solar? A solar energy system can quickly become an affordable alternative to traditional grid power, especially when considering the array of incentives offered. Meant to ease the transition to solar energy, these encourage opportunity for rebates, energy credits and loans. Understanding PA solar incentives introduces one to a diverse array of options that cater to the individual and make going solar an excellent and cost-effective option.
Net metering is a useful asset in giving you more control over your energy costs. Essentially, net metering delivers excess energy back to the grid when your home generates more than it consumes, typically during the day. The energy sent to the grid builds an energy credit that is redeemed when the solar system is not producing adequate power for the home’s consumption, typically at night. Your electricity will be automatically drawn from the grid if your system does not have battery storage. Additionally, if you send more power to the grid than you consume, the utility company will grant credits on your energy bill. By doing this, solar users can save on the energy they use from the grid. Pennsylvania energy utilities have some of the best solar net metering policies in the country with companies like PECO at the top of the list.
Solar Renewable Energy Credits (SREC’s)
Instead of storing your excess electricity to be used at a later date, solar renewable energy credits can be sold directly back to the utility company at market value. This means that your solar system could be making you money every month. The extra MWh produced by your system has a going rate that generally fluctuates around $30 and $40. With these extra monthly finances, solar users can acquire passive income that can be used to assist in paying off the solar panel systems. This is one of the most valuable PA solar incentives, due to its ability to give the residents control and ownership over the extra energy they produce.
Philadelphia Solar Rebate Program
Pennsylvania consists of many local solar incentives that offer a wide range of convenient advantages. One of these is for residents located in Philadelphia. Known as the Philadelphia Solar Rebate Program, this PA solar rebate program was established in order to provide financial rebates for installing solar. By way of a one-time rebate payment, new solar system owners have the opportunity to apply for this and recoup some of their initial expenditure. The amount of the rebate is determined by the size and capacity of the solar panels. Under this program, residential projects receive $0.20 per watt and commercial solar projects receive $0.10 per watt. For instance if you pay the average overall cost of $15,420 for a residential 6000 watt solar system, you would receive a rebate of $1,200.
Federal Investment Tax Credit
The Federal Investment Tax Credit is a valuable resource available across the country. By installing a solar system, you can become eligible for a federal tax credit, currently allowing for 26% off of your solar installation costs by way of federal tax credit. You must report enough annual income on your taxes to be eligible for this credit. For example, if you only pay $1,000 in taxes then you are limited to that amount in applicable credit. This incentive is time sensitive due to the declining percentage of tax credit. By 2023, the rate drops to 22% and subsequently to 10% by 2024 with the additional deduction of residential properties. To capitalize on this tax credit it is vital to commence the conversion to green solar energy as soon as possible.
Both Federal and State governments understand the crucial importance of implementing measures to incentivize commercial and residential property owners to switch over to a renewable energy source. The most practical of these energy sources is, by far, solar energy. By offering these rebate and credit systems, those interested in installing solar find it much more realistic to be able to afford the installation. If you are ready to make the switch to a renewable and clean energy source, reach out to our expert team of solar professionals at Lumina Solar and allow us to formulate a personalized plan that fits your individual needs. If you’re ready to get started with PA solar incentives, contact us to get your free quote today.