Solar Benefits in Pennsylvania
Property owners throughout Pennsylvania are realizing how affordable it is to install a solar array. The Solar Tax Credit of 26% is the best option in 2020 for Pennsylvania.
Federal Solar Tax Credit
One of the largest financial incentives for installing solar in PA is the federal solar tax credit. Officially known as the solar investment tax credit (ITC), this program allows homeowners and business owners to deduct 30% of the total cost of installing a new solar system from your federal taxes. Depending on the size of the system, this credit can save you thousands off the cost of switching to solar.
Unfortunately, the federal solar tax credit is winding down. Installations completed in 2019 will qualify for the full 30%, while installations in later years will only receive a partial credit. If you wait until 2022 to switch to solar, you will not receive any federal credits for a residential installation, while commercial systems will still qualify for a 10% deduction.
If you install a hybrid or grid-tied solar system in Pennsylvania, you can reap the benefits of net metering. Net metering is a program where you can still draw electricity from the utility grid during times of high demand (nighttime or cloudy days) and 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 electricity bill!
Reduced Energy Costs
According to one study, Pennsylvania has the 15th highest electricity prices in the nation. And the cost to generate electricity is only going to rise. By switching to solar energy, you can protect yourself against the ever-increasing electricity prices and enjoy free, clean energy produced by the sun. Add a Battery Back-up and you will drive the cost of energy further down and never lose power again.
Solar Renewable Energy Credit (SRECs)
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.
More information can be found here
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