Using renewable energy is a great way to contribute to the health of the environment. It also frees you from experiencing nationwide blackouts because you control the power you generate to a certain extent. However, these benefits are not the only upside to getting solar power.
The government wants to motivate more people to make the switch to renewable energy. This is why it provides certain incentives to encourage citizens who may be hesitant about making the switch. These incentives come from both the federal and state government, and sometimes, come from the electricity companies. However, the state government incentives differ from state to state.
Here are some of the incentives you stand to gain from the government if you switch to solar power today:
1. Federal Investment Tax Credit
If you use solar power, you can claim 26% of the amount it cost you to purchase the system from your federal taxes. This incentive covers the purchase of the solar panels, the cost of installation, and other additional equipment for the installation.
However, you should know that this incentive is only available to people who bought their solar power setup. Also, it only covers the original installation of the system. This means that if you buy a house that has a solar system in place, you cannot benefit from the tax credit.
2. Solar Renewable Energy Credit (SREC)
Several states offer solar system owners a chance to earn SRECs and in turn, sell this credit to local power companies to regain the money spent on installing and purchasing the system. In Illinois, this incentive is administered by the Illinois Shines Program and it helps the government meet its required renewable energy quota.
3. Net Energy Metering
If you generate more power than you use from a renewable source, you can get credit for it through your electricity company. The Illinois Net Metering Law requires utility companies in the state to one-on-one metering that helps to reduce the rate at which renewable energy users are charged for electricity.
4. Property Tax Exemption
Installing solar power in your home increases the value of your property. Ordinarily, when your property appreciates in value, the amount of property tax you are expected to pay also increases. However, in some states, Illinois included, this increase in property tax is waived for a property with a solar power system.
5. Cash Rebates
In some states, after you buy your solar power system, you can receive a certain amount of the money spent back. It usually involves a simple process of filling out a form and mailing it to the appropriate authority. This way, you can get up to 20% of your investment cost back. Most states in the U.S. do not offer cash rebates and this includes Illinois.
Though incentives should not be the motivating factor when choosing to go solar, it can feel nice to be rewarded for helping the environment. Do not forget that aside from the federal investment tax credit, all other incentives depend on the state. Considering installing solar power in your home? Reach out to us here for a quote.