What are solar panel rebates & incentives?

Solar panel rebates and incentives are driven by the fact that solar energy is cleaner and overall more sustainable than fossil fuels are. There are numerous financial incentives, such as state and federal tax credits and solar rebates, designed to cut some of these costs and encourage the use of residential solar power.

What are solar rebates?

Solar rebates are the numerous financial incentives designed to cut some of the costs of installing solar panels in order to encourage the use of residential solar power. These rebates vary by state.

How much does solar panel installation cost?

Solar panel installation costs depend on your home's size, energy needs, roof structure, and location. You can estimate around $10 to $15 per square foot of living space for solar panel installation. Keep in mind, this estimate doesn’t account for tax credits or local incentives, which can significantly reduce your final cost.

What is a solar tax credit and a rebate?

A tax credit is claimed through your tax returns, while a rebate is a partial refund you get after the solar panels are purchased. Solar incentives are subject to change — check with your local authorities for the most up-to-date information. Tax credits for solar installations have historically benefited higher-income homeowners.

What is the difference between federal and state solar rebates?

Federal vs State Solar Rebates The federal tax credit applies to the cost of your solar system and all its components. State incentives are a little trickier. They vary by state and sometimes even within the state itself depending on the utility company provider. Rebate amounts also change often.

Is a solar rebate a tax refund?

It is not a rebate or a refund, but it reduces what you owe on income taxes. Depending on where you live, you may be eligible for additional solar incentives, such as tax breaks and rebates. Overall, New York and Oregon have the most state-funded solar incentive programs.