Are you considering solar installation but feel worried about the cost? There are many ways to save on this upgrade, and it mostly comes from your taxes. Keep reading to learn more about relevant residential tax incentives related to solar energy.

Federal Solar Tax Credits

According to EcoWatch, the Inflation Reduction Act (IRA) was passed in August 2022. The act further incentivizes solar installation, so experts expect to see a 40% increase in installation projects between 2023 and 2027 because of the IRA, per EcoWatch. If you plan to install a solar PV system, the federal government will reward you. For installations between 2022 and 2032, EcoWatch states that you can receive a 30% tax credit. Make sure you complete the installation for the year you file, as it'll decrease to 26% for installations made in 2033 and 22% in 2034.

State and Local Credits

Your rebates don't stop at the federal level. You can earn additional rebate credit from your local and state governments. However, unlike the federal government, there's no one set rebate percentage at the state or local level. How much you qualify for simply depends on your particular state of residence. For example, the state of Massachusetts provides up to a $1,000 rebate for solar energy installations throughout the state, per Forbes.

Solar Renewable Energy Certificates

Did you know you could make money from your home solar energy production? Solar renewable energy certificates (SRECs) are created for each megawatt (MW) hour of electricity generated from such solar energy systems, states the EPA. These certificates can be bought and sold to transfer their right to count solar electricity to utility companies. These certificates are only available in certain states that have a solar carve out.

As you can see, a solar installation at your home comes with many benefits, which can include monetary ones. You're already going to be saving a great deal of money when it comes to electricity bills, so imagine the joy when your savings further extend when you file your taxes. For solar installation and energy consultation services you can trust throughout Massachusetts, contact our team at NV Energy, LLC. We're happy to answer all your questions and provide more information about tax incentives!