Solar panel systems qualify for a number of rebates, tax credits and incentives. These incentives can reduce the cost of your system by 30 percent or more, depending on where you live.
|Start with the gross cost of the system.||$20,000|
|Deduct cash rebates.||- $2,000|
|Your cost after rebates:||= $18,000|
|Deduct federal investment tax credit (ITC).||- $5,400|
|Deduct state tax credits.||- $1,000|
|Net cost of your solar panel system:||= $11,600|
In this example, your net solar panel installation cost is nearly 45 percent less than the gross cost, thanks to cash rebates, state tax credits, and the federal ITC. Remember that net costs can vary significantly depending on what incentives are available in your area. We recommend using EnergySage’s Solar Calculator to get a quick estimate of how much you can save by going solar in your area.
In addition to the environmental benefits of going solar, your solar panel system is a smart financial investment. The financial benefits of a solar panel system include: