by Kelly Anderson, on Apr 27, 2020 2:21:23 PM
Lower Your Solar Cost with State & Federal Incentives
Though solar panels have been around for a long time, we’re seeing a greater interest from homeowners across Illinois. This push can be credited to increased awareness of solar power’s benefits and a wide variety of tax credits provided by both the state and the federal government.
While you’ll probably see estimates online for upwards of $10,000 (and sometimes much more), you need to understand that every situation and every solar cost is different. There’s a wide variety of factors that go into your Chicago, IL system’s final cost.
SEE ALSO: Can I Get Free Solar Panels on My Roof?
While Systems Are Rarely Free, the Investment Pays Off Over Time
The first thing you need to understand is that both federal and state incentives not only knock a chunk out of your initial cost to install solar panels, but there are additional incentives that continue to pay dividends long after the initial cost has been recouped.
First there’s the Investment Tax Credit (ITC) which allows you to deduct the cost of 26% (for 2020) of your system’s installation cost from your tax liability. If you don’t use the full deduction in the year in which you bought your system, then you can apply it to the next year.
There’s an ongoing step-down process that makes that tax credit lower each year, so be sure to install soon to save. Most of our customers in Chicago, IL have already taken advantage of the higher tax credit from last year (30%), so get this now while you still can.
Beyond this credit from the federal government, Illinois offers a variety of state-level credits. For example, you get a break on the value that the panels add to your home. Your home will not be taxed extra just because you added solar panels—that value will be ignored in tax evaluations.
Save After Installation, Too
Once you get the system in place, you get even more savings. For each megawatt hour of electricity that your system produces, you receive something called a Solar Renewable Energy Credit, which can then be sold at a profit.
Additionally, your electric provider is required by Illinois law to buy back any excess electricity you generate throughout the year, ensuring that you only end up paying the net cost of the electricity you use.
When you add all these incentives together and combine them with the purchase of a cost-effective system, you can imagine how the savings build upon each other and grow into a profit over time.
The only way to find out how much your system will cost initially and how long it will take to recoup your costs is to work with a solar installer who can come to your property and give you a proper estimate.
Let’s Build You the Right Solar System
Solar systems come in all shapes and sizes. Let’s build you the right system for your needs.
All you have to do is click here, or give us a call at 888-884-3557 today!
