Even if you have the knowledge that a solar energy system is going to pay for itself given enough time, it is good to reduce any costs you can up front. Other than the federal Investment Tax Credit—allowing you to obtain a 30% credit for certain installation and equipment expenses—numerous incentives are offered on municipal, state and utility bases.
Prior to the purchase of any solar energy system, be sure to review our Solar Rebates and our Tax Forms 101. Checking out our record of the best tax credits, incentive plans, and rebates available in your state is a smart idea as well. Also make sure that you skim over our guide to picking a proper solar installer.
A financing plan to make your building more energy efficiency is the AlabamaWISE Home Energy Program. It includes loans from $2,500-$15,000 and an interest rate of 1%. One plan that gives you a set amount (usually the typical retail price) for each kWh produced by an enrollee’s renewable energy arrangement is the ones offered by TVA Green Power Providers.
Incentivized price cuts depending on your solar power generation per kWh is offered through the Sustainable Natural Alternative Power (SNAP) Plan.
A Small Building Materials Loan is also available for a maximum of $100,000 that applicants can use when they finish or renovate a piece of property placed in a “small community.”
A solar energy credit that reaches a maximum of 25% of the price of your device or a maximum of $1,000 is also available. It is called the Residential Solar and Wind Energy Systems Tax Credit.
There is a sales tax exemption for those who sell solar energy arrangements in retail circumstances. This also applies to the price of installation from the contractor. It’s designated as the Solar and Wind Equipment Sales Tax Exemption.
$0.05 per watt is incentivized with a system capacity of 50 kW at most. It stops at $2,500 and is included in the Mohave Electric Cooperative Renewable Energy Incentive Plan.
A tax credit is offered on qualified systems that were installed on or after December 31 of 2010. It is dependent upon the level of electricity generated every year in a ten-year time frame. This is called the Renewable Energy Production Tax Credit.
Arkansas currently doesn’t permit the use of public-purpose-funded energy plans for efficiency. The state does implement metering for totals that are based on guidelines supported by firms such as Entergy Arkansas.
A property tax exclusion for the complete total of a solar energy arrangement’s price is available for particular kinds of systems established between January 1 of 1999-December 31 of 2024.