2024 Solar Incentives Guide for Russellville, AR - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Russellville?

Source: https://www.dsireusa.org/

Solar incentives are meant to help mitigate the cost of installing solar panels on your home. These financial incentives are intended to encourage more people to convert their home partially or fully to renewable energy. Various types of incentives, such as cash back, discounts or credit towards your monthly utility bill, might be available to you. Some incentives may be provided via the state of Arkansas, by your utility company or by county or municipality, while others are federal. Some broad categories of solar incentives include:

• Tax Credits: Tax credits are dollar-for-dollar reductions that lower the amount of income tax you owe the federal government. (This is different from a tax deduction.)
• Net Metering: You may be able to sign a net metering contract with your Russellville utility company, that may apply to all or a percentage of the excess electricity your solar panels generate. They will then deduct this value from your monthly utility bill.
• Rebates: Some solar companies will help you claim a rebate, or partial refund of your purchase, for your solar panels. Counties or states will also offer limited-time rebates at various times. Any rebates you receive will usually be deducted from the total price before tax credits are calculated.
• Tax Exemptions: Your solar panel system might qualify for both sales tax and property tax exemptions. Sales tax exemptions are applied at the time of purchase. Property tax exemptions allow you to ignore the added value of the solar panels when calculating property taxes on your home.

Best National Provider

SunPower

★★★★★

5.0

• Most efficient panels on the market
• National coverage
• Cradle to Cradle sustainability certification
• Great warranty coverage
• Expensive
• Customer service varies by local dealer

Get Estimate

Best Technology

Tesla Energy

★★★★★

3.2

• Price-match guarantee
• Sleek, efficient, and durable solar panels
• Best solar battery on the market
• Some reported issues with customer service
• Customer service varies by local dealer

Get Estimate

Federal Solar Incentives

Federal solar incentives are probably the first thing that comes to mind when thinking about solar incentives. The Federal Solar Investment Tax Credit, or ITC, is probably the most commonly known federal solar incentive. The ITC offers a tax credit for a specific percentage of the cost of your solar system.

The ITC is applied to the total cost of installing a solar system, including the panels themselves as well as accessories, labor and equipment. You can claim this credit for panels installed after January 1, 2006, on a primary or secondary residence that you own, as long as it is located in the United States. The tax credit ranges from 26-30% of total costs depending on when your project was completed. There is no maximum amount you can claim.

To better understand exactly how much the ITC could save you, speak with your local Russellville solar panel installation expert.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was expanded and extended by the passage of the Inflation Reduction Act. The new Clean Energy Credit is valid until 2035. Homeowners can now receive a 30% credit for solar systems installed between 2022 and 2032. This new credit will then decrease annually until the date of expiration. Starting in 2023, it will also be easier to claim credits for energy storage systems under the new laws.

Click here to learn more about the new Inflation Reduction Act. The best way to learn more about how the new Clean Energy Credit applies to you is to speak with your local Russellville solar panel installers directly.

State & Local Solar Incentives

In addition to those provided at the federal level, there are often also state solar incentives. Rebates, tax credits and more might be available at a more local level. These incentives — which might be provided by your county or municipality, or by the state of Arkansas — may be offered for only a limited time, or on an ongoing basis.

Next Steps for Installing Solar in Russellville

Solar incentives may come from your local utility company, the Arkansas government or the federal government. The large number of incentives available has contributed to a large increase in solar energy use in the last 15 years. We suggest talking to your local Russellville solar installation expert for more information about these incentives and to ensure that you're getting all the money you can for your solar panels.