One of the most common questions people ask about home solar panels is if they help lower your energy expenses. The simple answer is, yes. There are many reasons why solar panels are an incredible alternative energy source.
With solar panels installed on your home, you generate your electricity for consumption by using renewable energy. Solar panels are a sustainable energy and roofing solution because you are using non-polluting sources. This way, you do not emit harmful greenhouse gases when you generate electricity.
While it’s fairly common knowledge by now that using solar panels can help you save on expenses, what many people do not know is that you can also receive incentives for installing and using solar panels. Before we discuss the incentives you can receive, here’s a brief introduction to renewable energy subsidies.
What are Renewable Energy Subsidies?
Renewable energy subsidies are incentives for people who use green energy sources. In 2010, renewable energy deployment began because the government needed a push to motivate the private sector to invest in renewable energies.
Because of this incentive, people are using this as a mechanism to earn or save money. You are not only claiming the tax credit, but you are also making money from the energy that you bring back to the grid.
How Can You Earn Credit Back on Home Solar Panels?
Now that you know about renewable energy subsidies, let’s discuss the solar energy credits that are available for you to earn from home solar panels:
1. Federal Renewable Energy Tax Credit
The Federal renewable energy tax credit is one of the essential incentives implemented by the US government. This is specifically focused on homeowners who installed residential solar power energy sources in their homes. These include the following:
- Solar Water Heating Systems
- Geothermal Heat Pumps
- Small Wind Turbines
- Fuel Cells
- Solar Photovoltaic (Solar Panels)
With the Federal energy tax credit, you will receive a 30% rebate from your equipment, labor, and installation expenses.
2. Net Metering
One of the most successful types of incentives is net metering. It does not offer cash; instead, it offsets the electricity that you consumed when you do not use solar energy.
When you produce excessive amounts of solar energy, you will use solar energy for the rest of the month. This will help you achieve a zero-energy bill. However, some utilities will still require some payment, but this is still an excellent incentive that you can benefit from.
3. Feed-In Tariff
Similar to net metering, Feed-In Tariff or FIT is an incentive practiced and implemented worldwide. The only difference between net metering and FIT is that in FIT, you get paid in cash.
FITs are fixed electrical prices given to renewable energy producers for each energy unit that they bring back to the grid. This type of incentive was not very successful in some parts of the US. However, places like California, New York, Colorado, and Rhode Island still use this incentive type.
Besides reducing your carbon footprint, having home solar panels as an energy source can reduce your energy bill and even earn you money. The fact that you get incentives by taking care of the environment and giving back to the grid is another excellent reason to switch to solar energy. It is best to work with a reputable energy and roofing company to help you install efficient solar panels for your home.
At Simmitri, we offer solar energy and roofing solutions to both residential and commercial properties in Northern California. We provide expert services in solar power, energy management, roofing, and more. Get your instant solar power report and quote today!