A solar electric or photovoltaic (PV) system can reliably produce electricity for your home or office. These small or distributed solar systems are often installed by home or business owners to offset their electricity costs.
If you want to purchase a rooftop solar system for your home, federal tax credits, and other state, local, or utility incentives can offset some of the upfront cost. There are also several financing options available for homeowners, including energy-saving mortgages, home equity, Property Assessed Clean Energy Loans, and more traditional bank loans.
Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.) It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it. There is no maximum amount that can be claimed.
Learn more and find state and local incentives. Leases and power purchase agreements (PPAs) are options for those who are unable to purchase a system, though these options are not eligible for tax breaks or other incentives.
If you think solar is not an option for you because you rent or do not have adequate sunshine at your location your home, have inadequate solar resources, or lack financing, you may still benefit from community solar, where the benefits of a solar project, likely from an off-site solar array, flow to multiple customers. And there numerous other ways that make solar easier, cheaper, and more accessible. Learn about the various ways you can go solar:
- Planning a home solar electric system
- Benefits of residential solar
- Homeowners Guide to Going Solar
- Money Matters: How to Finance Your Rooftop Solar Energy System
- Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics
- Database of State Incentives for Renewables & Efficiency
- Community Solar Basics
- National Community Solar Partnership
- Solar photovoltaic equipment and technology basics
- Solar and real estate
- Local electricity rates
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