What You Need to Know About Solar Financing Available in the U.S.
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
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
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
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
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