Financial incentives for homeowners looking to buy solar

Three Ways To Financial Gain Through Solar

On a preliminary level, lets discuss the facts. If you prefer to buy your solar energy system, solar loans can lower the up-front costs of the system. In most cases, monthly loan payments are smaller than a typical energy bill, which will help you save money from the start. Solar loans function the same way as home improvement loans, and some jurisdictions will offer subsidized solar energy loans with below-market interest rates, making solar even more affordable. New homeowners can add solar as part of their mortgage with loans available, where borrowers can start financing for home improvements in the home’s purchase price.

Firstly, a PPA could be your highway to easy payments and get solar regardless if you have the oney or not, Consumers have different financial options to select from when deciding to go solar. In general, a purchased solar system can be installed at a lower total cost than a system installed using a solar loan, lease, or power purchase agreement (PPA). Solar leases and PPAs allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated. Consumers enter into agreements that allow them to have lower electricity bills without monthly loan payments. In many cases, that means putting no money down to go solar. Solar leases entail fixed monthly payments that are calculated using the estimated amount of electricity the system will produce. With a solar PPA, consumers agree to purchase the power generated by the system at a set price per kilowatt-hour of electricity produced. With both of these options, though, you are not entitled to tax benefits since you don’t own the solar energy system.

The second biggest factor is ITC - Buying a solar energy system makes you eligible for the Solar Investment Tax Credit, or ITC, which is a 30 percent federal tax credit on your system that is available through 2022. 

Then there is Form 3468,  is a a government incentive to encourage people to invest in clean energy and allows them to get even more credits.  Solar qualifies as a renewable energy resource and helps reduce greenhouse gas emissions, so it is an important factor to Form 3468. Read more information on Intuit Turbo Tax about it here.