Renewable Energy Finance
American households have access to a range of financial rebates & tax credits they can utilize on the state level, if they decide to install solar energy on their existing home or a completely new build. These benefits are classified under “Renewable Energy Finance” but they mean that energy-efficient homes have access to state subsidies. In practice, a household can request financial help when they’re investing in solar energy and this doesn’t only apply to new homes – the benefits are available to existing homes and/or home remodeling.
There are even mortgage benefits and separate mortgages for energy-efficient houses called EEM’s (energy-efficient mortgages) that can provide larger loans than the ones you’re qualified for based on your salary/down payment. A new law states all new houses in California require at least a few solar panels before they get a building permit. Under the previous Obama administration, the new Emergency Economic Stabilization act of 2018 started financing 30% of all solar installations.
Federal Financial Benefits For Renewable Energy
The financial benefits for solar installations are not offered in the form of cash – but the government hands out “trading certificates” which can be accessed electronically and used on your purchase as Federal electronic currency. The amount a certain home can receive varies based on the state and the energy production of the unit. For instance, if you live in Nevada and you expect to produce renewable energy year-round (thanks to the sunshine) you will be entitled to higher trading certificates. In practice, the Federal Government issues one certificate for each MWh (megawatt-hour) of electricity your new panels produce.
State Financial Benefits From Renewable Energy
Aside from general trading certificates, US households are entitled to “feed-in tariffs” which provide additional funds for all the excess electricity you produce that is fed to the grid. If your house is connected to the state power grid, it can provide excess energy to the grid and the state will compensate you for that excess energy. There aren’t universal feed-in tariffs nation-wide, but these are all regulated at the state/municipal level and you should contact your regular solar retailers or government to find out which feed-in tariffs you’re qualified for.
How Can You Spend The Credits?
The Federal-mandated credits you’re entitled to are going to cover 30% of the initial purchase price of the solar system.
These credits are not available in cash, but there are 2 main ways households can use these credits:
- 30% of the purchase price can be erased from the income taxes you owe, well in advance of Tax Day.
- They can be deducted from your income taxes after you pay them. If you pay income taxes in the sum of 30% of the purchase price of a solar system, the government can give you a refund for the amount owed. This will usually be after April 15th on Tax Day.
Can I Get Credits Even If I Already Have A Solar System?
Yes, if the system you purchased has been used to produce energy or heat/cool your home, you are entitled to the full extent of the benefits available under the Emergency Economic Stabilization Act. If you think you are entitled to get Renewable Energy Finance, then you need to apply today!