Federal, state and local governments offer substantial financial incentives to encourage homeowners to switch to solar energy. These incentives dramatically lower the cost of buying and installing solar panels. They also reduce your out of pocket expenses and shorten the amount of time it takes to make a positive return on investment.
Local Rebate Programs
Southern California Edison, the LA Department of Water and Power, and other local utilities created incentive programs to encourage homeowners to lower their energy usage and switch to solar power. The amount of the solar subsidy varies by utility but some can cover up to 20% of your solar system cost.
Federal Tax Credits
The federal government allows you to deduct 30% of your solar system costs (less local utility rebates) off your federal taxes. For example, if you purchased a system for $20,000 and received a $3,000 rebate from DWP, then you can deduct 30% of the remaining balance of $17,000, which is $5,100, from your federal tax liability. That is a reduction of $5,100 from your federal taxes. If you do not use all of your solar tax credit this year, you can roll over any remaining credit to the following year.
SunCraftsmen Will Maximize Your Financial Incentives
We are committed to helping you benefit from every available federal, state and local utility rebate and tax credit. Navigating through the bureaucratic maze of government programs can be intimidating and confusing, which is why SunCraftsmen will identify all the qualifying programs for your system and file the paperwork for you. All financial rebates and incentives will be mailed to your home directly. To find out exactly how much you can save, call us to set up a free consultation.