Take Advantage of Solar Incentives Before It Is Too Late
As a homeowner, you're probably well aware of how important it is to invest in your home. Upgrading your home with solar power provides not only environmental benefits but also financial incentives. In 2023, there are several lucrative incentives for homeowners who are considering installing solar PV systems. Federal tax credits and state property tax exemptions are only some of the savings that could be seen if you make this smart investment.
Remember that these incentives won't be available forever and their value may decrease after 2023 – so it's important to act now while the opportunity is still beneficial! Read on for more information on some of the solar incentives available to California residents in 2023.
Federal Incentives
Perhaps the most lucrative of federal tax credits for homeowners is the Residential Clean Energy Credit (sometimes called the Solar investment Tax Credit). Originally, this credit was phased out with several step-downs in the percentage homeowners could claim on their taxes, with a scheduled reduction down to 22% in 2023. The credit was set to expire in 2024.
However, with the recent signing into law of the Inflation Reduction Act, this credit has been renewed through 2032 and the percentage that homeowners can claim on their taxes has increased. The solar tax credit can reduce a homeowner's tax liability by up to 30% of the price they paid to install their system.This makes investing in solar energy much more appealing, as it helps to defray some of the initial installation costs and more quickly begins to generate savings.
State Incentives
California is leading the way to a greener, more energy-conscious future. Homeowners in California who install solar PV systems and backup battery storage are eligible for attractive tax rebates and incentives. The Self Generation Incentive Program (SGIP) provides homeowners with 15 to 20% off the cost of their installations by issuing tax rebates. California also offers property tax exemptions when you buy, sell, build or majorly renovate a home with a qualifying solar installation.
Additionally, homeowners who are PGandE customers and who install solar PV systems may be able to take advantage of PGandE's Net Energy Metering (NEM) program. The NEM program is designed to help solar customers get the most out of their solar installations. It gives customers credit on their utility bill for each kilowatt-hour (KWh) of electricity their system generates, which offsets any electricity they use from the grid.
From heating and cooling maintenance to electrical panel upgrades to this year's most lucrative solar incentives, we have our eyes on the future here at Valley. Read our blog to learn more, or send us a message to get started on your 2023 projects today.