There are plenty of solar power benefits and perks out there. More homeowners are realizing these benefits and learning how affordable it is to install a solar array for their residential house. In this article, we are going to highlight some of those solar power benefits for you, starting with the ever appealing solar tax credit.
Solar Power Benefit #1: Federal Solar Tax Credit (ITC)
One of the very best solar power benefits is the federal solar tax credit in PA. You may also have heard it termed the solar investment tax credit (ITC), which is referring to the same program. This program allows homeowners and businesses to deduct 26% of the total cost of installing a new solar system from your federal taxes. If you do the math, this solar tax credit could save you thousands on your cost of switching to solar. Of course, the exact savings would depend on the size of your system.
However, there is some unfortunate news: the federal solar tax credit is beginning to wind down. Solar Installations that are completed in 2021 and 2022 will still receive the full 26% solar tax credit, but installations taking place in later years will only receive partial tax credit (still a decent amount of deduction savings). If you wait until 2024 to switch to solar, you will not receive any federal tax credits for a residential installation, while commercial systems will still qualify for a 10% deduction.
So what does this mean for you? If you are contemplating on making a switch solar, do it sooner rather than later if you want to enjoy this solar power benefit. For more details, visit this article How to Get a Solar Tax Credit in 2020 or contact our knowledgeable team at Belmont. Additionally, you can also view the actual IRS form to see what the application for the solar tax credit looks like.
Solar Power Benefit #2: Net Metering with Solar
Another great solar power benefit is net metering. If you install a hybrid or grid-tied solar system in Pennsylvania, you can reap the benefits that net metering presents. Net metering is a program where you can draw electricity from the utility grid during times of high demand (nighttime or cloudy days), and then send excess electricity produced from your system back into the grid. At the end of the year, if your surplus electricity is greater than the amount you used from the grid, you get a credit. That means you can reduce or even eliminate your entire electricity bill!
Solar Power Benefit #3: Reduced Energy Costs
A third solar power benefit is that of reduced energy costs. According to one study that was conducted recently, Pennsylvania has the 15 highest electricity prices in the nation. Now consider the fact that electricity costs are expected to continue rising over time! That’s a somewhat scary thought.
By switching to solar energy, you can protect yourself against the ever-increasing electricity prices and enjoy free, clean energy produced by the sun. In addition, if you choose to add a battery backup to your solar system, you will drive that cost of energy further down and never lose power again. Who wouldn’t want that for their business or home?
Solar Power Benefit #4: Solar Renewable Energy Credit (SREC)
The last solar power benefit we need to touch on it solar renewable energy credit (SREC). The Commonwealth of Pennsylvania has set lofty goals for utility companies to produce or purchase electricity from renewable sources. To meet this goal, utility companies are willing to purchase credits from your solar system. Sometimes referred to as Solar Alternative Energy Credits (SAECs), a system receives one credit for each megawatt-hour (MWh) of energy produced.
SREC rates can fluctuate based on season, amount of credits available, and rates in other states. And while each credit is only worth $20-40, these can add up to create additional incentives for switching to solar.
If you wish to learn more about SRECs, you should head over to SRECTrade and check out all the informative content they have on this topic.
Solar Power Benefits for You
Let us make this clear: these are solar power benefits that you and your family can enjoy as well! These aren’t some lofty, unattainable ideals out there, but rather achievable incentives that come with switching to solar. Are you ready to make that switch? Just reach out to us to schedule a free consultation. Additionally, you can also head over to our solar installation page and begin exploring the different types of installations that we offer.