How to Take Advantage of the Solar Tax Credit
by Kelly Anderson, on Jan 15, 2020 10:33:00 AM
There’s more than one way to save
You may have started thinking about new ways to save on your energy bill in 2020. One of the most exciting and popular methods is by adding solar panels to your Rockford, IL home. You may have even heard you can save money through a solar tax credit. Well, the answer is that it’s entirely possible to save -- but the answer is more expansive than that. Want to learn how you might be eligible to lower your monthly bill and add value to your home? Keep reading.
First of all, the vital thing to remember about the Illinois incentives is that it's three separate programs run by the Illinois state and federal government. To understand if you can take advantage, first, you must know what they are.
SRECs: SREC stands for Solar Renewable Energy Credit and is earned for every 1000 kilowatt-hours of solar energy produced by your system. You can sell those credits back to the government and use the money to help reduce the cost of your installation.
Investment Tax Credit: The Investment Tax Credit is a program run by the federal government. Currently, you can deduct a 26% of the cost with no cap on the potential value. It’s designed to simplify the process of adding panels to your property so you can help contribute to renewable energy.
Net-Metering: It’s a way that the local Illinois government helps you manage your solar power. When your system produces energy, it can be stored on the local power grid. During the day, you’re most likely at work and not using much energy at home. Once you finish your day, you can use all the power you need. Net-metering helps regulate the time-of-use, so you won’t suddenly lose power in the middle of the night.
To take advantage of these benefits, you'll have to own your system and have a tax appetite to support it. However, if you qualify, you could pay less in monthly energy costs than you would if you continue to pay the local electric company.
Work with a Local Solar Expert
At Summit Solar, we believe solar should make sense. We won't pressure you into buying a system that doesn't save you money.
If you want to work with a local, premium solar installation service, click here or give us a call at 888-884-3557 today.