Solar Tax Credit and Rebates
Although there has been a push in recent years by the federal government in terms of providing tax credits and rebates for solar energy, it is the states themselves that have led the way. It should not come as a surprise that that the states which offer the best incentives for the use of solar energy should also be the ones that receive the most sunlight on a year-round basis.
Arizona: With over 300 days of sunlight, this desert state has taken full advantage of using tax credits and rebates to help fuel the solar industry. The rebates do vary depending on the utility company, but they average around $100 per kW generated and the state itself provides 25% of the total cost of installation in terms of tax credits up to $1,000. Plus, solar systems are completely exempt from property and sales taxes which means that most solar energy systems will pay for their installation costs in roughly seven years time.
California: Arguably the most environmentally conscious state, California offers substantial incentives for solar power. Depending on the utility company, the rebates generally fall within the $700 to $1,000 range and while tax credits are not provided, there is a complete exemption from all property taxes which means that on average a solar energy installation will pay for itself in a decade.
Colorado: Although most people associate this state with mountains and snow, it does receive a considerable amount of sunlight the year round. Colorado became the first state to create a renewable energy standard and offers impressive rebates depending on the utility company some of which goes up to $15,000. There are no tax credits, but there is a 100% tax exemption on installation and properties which means that on average a system will pay for itself in just eight years time.
Connecticut: Many people might not think a state this far north would provide so many solar energy benefits, but Connecticut is focused on renewable forms of energy. Their high electricity prices has created a big demand for solar power which is why their power rebates go up to $6,750 and with a 100% tax exemption from installation and property taxes, it only takes about eight years to pay for itself.
Delaware: Small in size, but big in solar energy, Delaware offers some of the biggest rebates depending on the utility company which can range upwards of $15,000. Even without tax credits or exemptions, installing a solar system in the state means that it will pay for itself on average in just nine years time.
Hawaii: This beautiful state seems like a natural for solar energy and with tax credits ranging up to 35% or $5,000 maximum for installation, it acts as an attractive incentive. However, it must be pointed out that only in Honolulu is there any property tax exemptions. Still, considering the high cost of electricity on the grid and the high amount of sunshine throughout the year, it only takes four years on average for a solar system to pay for itself.
There are several other states which also offer incentives for installing solar power, so it is worth checking them out if you want to save on your electricity bill.