Going solar is a great decision. You’ll save money, have cleaner electricity, lower your carbon footprint, and more! But the cost is one of the most significant barriers that push people from making it happen.
Kentucky solar energy incentives are what make the installation cost feasible for homeowners. Without the many different incentive programs nationwide, the residential solar industry would not exist as it does today.
But if you are considering going solar, what are the incentives, and why do they matter? Here are seven things to know about energy incentives and solar panels.
1. Cost Savings
Going solar has many cost-saving benefits. While installing a solar energy system may initially seem high, the long-term cost savings are substantial. One of the significant benefits of solar energy is that it costs very little in utility costs each month. Depending on the system size, it also helps reduce or even eliminate a person’s electric bill each month.
Homeowners can also receive generous federal, state, and local incentives, such as tax credits, grants, and rebates that help cover a part of the total cost of the installation. Additionally, energy price increases don’t affect solar power systems. Thus, going solar can help homeowners save thousands of dollars in energy costs over time.
Furthermore, homeowners who switch to solar enjoy increased home values, as solar systems add significant value to a home. More in-depth information can be found at Blue Raven Solar, linked here.
2. Increased Home Value
Having a home with increased value can be rewarding now and in the future. There are many different ways to increase the value of your home. For example, making repairs and ensuring maintenance needs are taken care of helps keep a home in good condition, improving value.
Additionally, modernizing or remodeling your home can bring significant returns on the home’s value. Other strategies such as landscaping, painting, adding outdoor living spaces, and updating amenities like appliances and fixtures can help boost your home’s value. A well-rounded plan will ensure all factors are addressed and the return on investment far outweighs the hard work and effort.
3. State Tax Credits
Tax exemptions are a great way to save money when you go solar. Federal tax credits are available for both residential and commercial solar systems.
This is a significant incentive when deciding to go solar and helps to offset the initial costs. In addition, some states, counties, and cities offer tax exemptions for installing solar. Some of these deductions may cover all the costs associated with your system, not just the hardware but also labor and permits.
It’s always a good idea to see if any tax exemptions are available in your area. Taking advantage of these tax exemptions can significantly reduce the financial burden of going solar.
4. Investment Tax Credits
Investing in solar energy is a wise decision for the environment and a homeowner’s pocket. Many states give homeowners investment tax credits when they choose to go solar. These tax credits make reducing energy consumption more accessible and affordable.
Depending on the state and if the solar system is leased or purchased, a homeowner could receive up to 30 percent of the total cost of his or her system covered. Homeowners can claim credit when filing their taxes for the year the system was installed.
Furthermore, many Kentucky solar companies also offer payment plans for their customers. This makes the switch to solar more accessible for homeowners and businesses. Investing in an energy-efficient system with tax credits is a wise decision for both the environment and the homeowner.
5. Performance-Based Initiatives
Solar energy is a clean and renewable source of energy that can be used to power homes and businesses. Performance-based initiatives (PBIs) are an essential factor to consider when going solar.
PBI is a payment to solar energy producers based on the system’s performance. This incentive allows homeowners and businesses to offset upfront solar installation costs and make the transition more economical.
By rewarding solar energy producers for the energy produced, PBIs can encourage the conversion to solar energy by giving them an additional incentive and sense of ownership. PBIs vary depending on state and local governments but generally include performance-based rebates and price guarantees. They are an essential tool to promote solar energy production and the adoption of clean energy and should be an integral part of a solar energy plan.
6. Support From Financial Institutions
Solar energy is becoming increasingly popular as it offers a way for people to get sustainable and cleaner energy. However, making the switch to solar energy can be expensive. Fortunately, most financial institutions have recognized this and begun offering support for those who want to switch.
This support usually comes from low-interest loans, which many banks and credit unions know is a good investment. The financial institutions also understand that solar can help lower energy costs and are willing to provide their customers with the resources.
7. Cash Rebates
Going solar is an excellent way to save money on your utility bills. One way to do that is to take advantage of cash rebates offered by many energy providers.
Cash rebates are available in two forms: a direct cash payment or a tax credit. With a direct cash payment, energy companies will pay a certain amount each year for a certain number of years to individuals who install solar panels.
With a tax credit, the amount of the credit will reduce the total tax owed to the IRS by the amount of the credit. Cash rebates are an excellent way to save money on energy costs and invest in clean, renewable energy sources.
Reap the Benefits of Kentucky Solar Incentives
The Kentucky Solar Energy Program is an exciting opportunity to save on energy costs while helping the planet and the local economy. Investing in solar is a wise investment with the potential to yield significant long-term savings. Take action today to learn more and reap the benefits of solar energy in Kentucky.
If you’re looking for ways to go green, we’re here to help! Check out more of our guides to learn all you can today!
