Financial Incentives to help you Use Solar Power in Your Home
It is undeniable that energy prices are going through the roof. Just take a look at your utility bill. Although competition is driving prices down, solar panel systems can require you departing with a chunk of change. If you are considering improving your home with a solar panel system or the hot new thin solar roofing systems, you need to know how to save yourself some money. The good news is using solar power can save you money after you install it but you can also save on the installation, particularly with new incentives.
Some of the following may not be available where you live or may differ in the way they are set up or handled. They are worth checking into.
Rebate Programs
To promote solar energy, rebate programs are offered to homeowners by government and utilities. The characteristics of such programs vary wildly, but typically come in the form of rebates ranging from a couple hundred bucks to $4,000 or more.
Personal Tax Credit and Deductions
If anything is more aggravating than exploding energy costs, it’s your tax bill. New and established government programs let you attack both by going solar. The first method is by simply saving money on taxes. If you install a solar energy system on your home, the federal government is going to give you a tax credit of up to $2,000. Tax credits reduce your tax liability dollar for dollar unlike deductions which are subtracted from your gross income. A majority of provincial or state governments now also offer tax credits you can use when paying your taxes. Each place handles the matter differently, but you can expect to get a credit for a percentage of your installation cost or a fixed figure.
Property Tax Incentives
Property taxes. How we all hate paying property taxes. Well, many places now provide exemptions, exclusions or credits for homes with solar power. Each government handles this issue differently, so look into the potential savings in yours.
Net Metering
Net metering is a concept that has resulted in exploding sales in the solar energy industry. Net metering refers to laws that require utilities to purchase power generated from your residential solar system at the same price the utilities would otherwise charge you for electricity. In effect, net metering lets you use the utility company as a battery. While you are at work during the day, your solar system sends energy to the utility and your power meter actually runs backwards. When you come home at night and use power, the power meter runs forward. All in all, net metering will either slash or completely eliminate your utility bill. With solar panel systems having a life of 40 years, think how much money you’ll save! While a majority of places have net metering laws, not all do. Make sure to check if yours does.
Energy Efficient Mortgages
Energy efficient mortgages came to be because of a nudge from the government to lenders in an effort to promote the use of solar energy as a power source. Put another way, the government told lenders to do it and do it now. So, what exactly is an energy efficient mortgage? An energy efficient mortgage is a loan that allows you to incorporate the cost of your solar improvements into your mortgage.
With your utility bills going through the roof, it is time to consider the steps you can take to save money. The economic benefits of going solar have never been better, which makes now the time to convert.
