Financial Incentives for Solar Panels
Financial Incentives for Solar Panels
Did you know that according to the Solar Energy Industries Association, the price of solar in Virginia has declined 43% over the past 10 years?
Did you also know that you will never see that type of decline in your energy rates from your utility company? Rather, your power bills will just keep rising!
As solar technology continues to improve and more incentives are made available, solar is becoming more affordable for homeowners. Not only does solar have a variety of financial benefits of its own, but there are also a myriad of government incentives that can be applied to solar projects to further decrease the price.
These financial incentives come from a variety of sources and can be applied in different ways. While some help finance your solar system, others put money straight back into your pocket, and others are reflected by savings solar brings about naturally.
Financial Benefits of Going Solar
Even without looking at available programs and incentives, there are plenty of financial benefits you can expect from going solar. These include:
- Reduced Power Bill: When you go solar, the energy your system produces will offset part, or sometimes all, of the power your home consumes each day. This means that you will see a reduction, or potentially an elimination, of your monthly power bill as soon as you go solar.
- Increased Energy Efficiency: Prior to installing a solar system on your home, we perform energy efficiency upgrades. These upgrades reduce your home’s energy waste, lowering the amount of power your home is using each month. This means your home will need a smaller and less expensive solar energy system to power your home.
- Fixed Rate: Utility companies aren’t ever going to stop raising power rates. When you go solar, you are securing a low, fixed rate for your energy that will never go up. No more unexpected rate increases!
- Home Equity: Every payment you make on your solar system is going right back into your pocket by increasing your home equity. A 2019 Zillow study found that, on average, solar increased a home’s value by 4.1%. If you ever decide to sell your home, you will be able to reflect the value of your solar system in how you price your home.
Financial Incentives for Going Solar
Beyond the natural financial benefits that solar provides, there are also a variety of incentives that further decrease the overall cost of going solar. Because renewable energy is better for the environment and reduces strain on the grid, the government is pushing for more homeowners to go solar by offering financial incentives that make it easier to afford.
- 30% Tax Credit: The federal government offers a 30% tax credit on the total cost of your solar project. You can choose to apply this money towards the cost of your solar project or use the money for other things.
- Net Metering: The net metering program is available to homeowners on Appalachian Power, Dominion, or their subsidiaries. The program allows homeowners to store excess power produced by their solar system on the grid instead of relying on an expensive solar battery.
- SRECs: Every time your solar energy system produces power, you earn SRECs: Solar Renewable Energy Certificates. These SRECs can be sold on the SREC market, much like stocks or cryptocurrency. They are valuable to utility companies who are required to sponsor a certain amount of renewable energy, but for you, it’s basically free money just for going solar!
These incentives and financial benefits greatly reduce the cost of solar, increasing ROI and making it easier for homeowners of any financial situation to switch to renewable energy. The incentives mentioned above are available to Virginia residents, though some qualifications may be necessary. When you go solar, be sure to research the incentives and financial benefits available in your specific state or region, as these vary based on location.
If you go solar with Earth Right Mid-Atlantic, we will ensure that you are set up to participate in as many incentives and programs as possible to maximize your solar savings. We want you to enjoy all of the financial benefits that solar has to offer!
