Many homeowners are unaware of the solar tax credits and incentives that you're awarded with when you decide to install solar on your home. Homeowner's can benefit from state and federal level grants. If you're one of the many that are unaware of such incentives continue reading to see what you're missing out on!
Federal Tax Incentives
Solar advocates and homeowners interested in installing solar on their home were granted an early Christmas present in mid-December as the Solar investment tax credit that was set to expire at the end of 2016 was extended. This tax credit allows for a 30 percent reduction in income taxes. By claiming this tax credit homeowners are able to reduce the amount they pay to the federal government. However to be eligible to receive this tax credit, the solar system must be purchased. Homeowner's that pursue the option to enter into a lease or PPA (power purchase agreement) forfeit the opportunity to claim the federal tax credit. For those unfamiliar, American Sentry Solar only offers the option to purchase their solar system since it gives homeowner's the best opportunity for savings.
More Information: www.seia.org/policy/finance-tax/solar-investment-tax-credit
The good news for Maryland residents is that the state received an overall grade of an 'A' according to a 2016 solar report card put together by Solar Power Rocks. When you choose to own your solar system, you will be awarded with a flat $1,000 grant for installing solar panels on your home. To be eligible for the solar panel rebate your solar system must not be larger than 20kW.
Maryland residents are also able to claim a credit on their Maryland state income tax. The tax credit is dependent on how much your solar system produces. The rate is $0.0085 per kilowatt hour and a minimum credit of $1,000 per year.