Maximizing Your Solar Investment with Incentives

Federal, state, and local governments recognize the importance of sustainable energy and the escalating costs associated with traditional power sources. To encourage the adoption of renewable energy, many utility companies and government bodies offer substantial incentives for solar installations. These incentives can significantly reduce the initial cost of going solar, making it a more accessible and attractive option for homeowners.

In many cases, the combination of utility rebates, state incentives, and federal tax credits can cover a substantial portion of the installation costs. While the exact savings can vary based on your location and specific circumstances, these incentives are designed to make solar energy a financially viable investment.

With solar incentives currently at some of their highest levels, there’s never been a better time to consider making the switch to renewable energy. By taking advantage of these programs, you can contribute to a more sustainable future while potentially lowering your energy expenses.

Federal Investment Tax Credit – 30%

The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through 2032. The credit percentage rate phases down to 26 percent for property placed in service in 2033 and 22 percent for property placed in service in 2034. You may be able to take the credit if you made energy-saving improvements to your home located in the United States.

The credit is nonrefundable, so the credit amount you receive can’t exceed the amount you owe in tax. You can carry forward any excess unused credit, though, and apply it to reduce the tax you owe in future years. Do not include interest paid, including loan origination fees.

The credit has no annual or lifetime dollar limit except for credit limits for fuel cell property. You can claim the annual credit every year that you install eligible property until the credit begins to phase out in 2033.

Credit limits for fuel cell property

Fuel cell property is limited to $500 for each half kilowatt of capacity. If more than one person lives in the home, the combined credit for all residents can’t exceed $1,667 for each half-kilowatt of fuel cell capacity.

The image shows a series of three circular progress bars connected by arrows, illustrating a percentage decrease over three time periods. The first circle represents the percentage for the years 2022-2023 at 30%. The second circle represents the percentage in 2023 at 26%. The third circle represents the percentage in 2024 at 22%.
State Incentives

Midwestern states offer several financial advantages for solar energy, including various state-specific, city-specific, and utility incentives. Additionally, many areas have net metering policies that enable residents to earn credits on their electricity bills by selling excess solar energy back to the grid. At Wolf River Electric, we will help you identify all the incentives you qualify for to maximize your savings*.

Increase Home Value

Installing a residential solar energy system on your property is a smart capital improvement that enhances your property’s value. Homes with solar panels not only sell faster but often fetch higher prices compared to homes without solar. Additionally, your investment in clean, efficient solar power increases the tax basis of your home. When it comes time to sell, this increased tax basis can be deducted from the sale price, reducing the taxable profit.

This reduction in taxable profit can help you potentially avoid capital gains taxes on the appreciation of your home. By joining the pack with Wolf River Electric, you not only invest in a sustainable future but also add significant financial benefits to your property. Explore the advantages of solar energy and make a wise investment today!

A couple stands in front of their home with solar panels on the roof, showcasing a "SunPower Solar Home" sign.

*Ask your representative about which incentive you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.