In the United States, there are a number of federal and state-level programs that provide financial incentives for the installation of solar power systems. One of the most well-known federal incentives is the Investment Tax Credit (ITC), which allows homeowners and businesses to deduct a certain percentage of the cost of a solar power system from their federal taxes. The ITC was recently extended, allowing homeowners to claim a 26% tax credit for solar systems installed through the end of 2022, and then it will decrease to 22% in 2023.
Another federal program is the Renewable Energy Production Tax Credit (PTC), which provides a tax credit for each kilowatt-hour of electricity generated by a solar power system. This credit is particularly beneficial for larger commercial and utility-scale solar projects.
At the state level, many states offer their own financial incentives for solar power. These can include rebates, grants, and property tax exemptions. Some states also have Renewable Portfolio Standards (RPS) which require utilities to generate a certain percentage of their electricity from renewable sources like solar.
Many states also have net metering laws that allow solar power system owners to sell any excess electricity they generate back to the grid. This can be a great way for homeowners to offset the cost of their solar power system and even earn extra income.
Some states also have community solar programs, which allows multiple homeowners or businesses to share the benefits of a single solar power system. This can be a great option for those who cannot install a solar power system on their own property or who do not have enough roof space.
Overall, there are a variety of financial incentives and programs available in the United States to support the adoption of solar power systems, both on the federal and state level. These incentives and programs can help to offset the cost of solar power systems and make them more accessible to homeowners and businesses.