The Economically Sound Switch

By: Divya Darshanprashad

The solar wave has been sweeping across the United States as more and more people switch to solar paneling. It isn't just an eco-friendly trend, it's actually a good economic decision! 

 Homeowners across the country have recently been seeing that federal tax credits are being issued when they switch to solar. There are more benefits than just a better environment and cleaner energy when they switch to solar. Within multiple states, there are programs that add onto the federal one to provide an almost 75% credit back at times. Federally, the Investment Tax Credit (ITC) is a significant credit that covers 30% of the cost of installing a solar energy system, reducing upfront expenses. This applies no matter what other rebates you get on top of it!

It can be a great economic decision within states that have a lot of sun coverage, and sometimes the switch can even pay itself off over the course of years. However, these benefits are not limited to only certain neighborhoods or states. Since solar panels are in use at all times, it is not just beneficial for sunny states like California or Arizona, there is a big solar scene in New York and other states. 

In New York, there are multiple other programs that help incentivize the switch even more.  The New York State Solar Tax Credit offers a 25% tax credit on solar installation costs, up to $5,000, which would add to the ITC return. There is also a property tax exemption, which provides a 15-year property tax exemption for solar energy systems. Finally, the NY-Sun Initiative is a comprehensive program supporting solar energy development and deployment across the state. These new incentives, combined with the environmental and economic advantages of solar power, make it an increasingly attractive option. 

California also offers programs and initiatives that are beneficial considering the excess solar energy that comes from the panels there. The California Solar Initiative (CSI) program offers rebates and other financial incentives to homeowners and businesses that install solar systems. Adding on, the Net Energy Metering (NEM) initiative helps solar system owners sell excess electricity generated to the grid, offsetting their energy costs. Those extra profits can go a long way when you consider just how much more you are getting back when you make the switch!

Switching to solar energy is becoming increasingly accessible and advantageous. With the cost of solar paneling steadily decreasing and a thriving industry offering competitive installation rates, it's easier than ever to make the switch. Homeowners and businesses can reduce their carbon footprint and contribute to a more sustainable future by harnessing clean, renewable energy from the sun. Both federal and state governments provide substantial incentives to encourage solar. These incentives range from tax credits, rebates, and net metering programs, which make solar power more affordable.

Overall, with increasingly competitive rates on solar paneling, and a booming industry within installation and rates– it is becoming even easier to switch. Plus the federal and state-exclusive benefits, make this switch an amazing opportunity for all! (Especially the earth!)