2023 Solar Incentives Guide for Northglenn, CO - Tax Credits & Rebates

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

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

The term "solar incentives" includes a range of financial incentives put in place to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. You may be eligible for several kinds of incentives, including discounts, cash back or credit towards your monthly utility bill, depending on your situation. Certain incentives come from your specific utility company, county or municipality, some from the state of Colorado and others from the federal government. You might qualify for any of the following types of solar incentives:

• Net Metering: You can sign a net metering agreement with your Northglenn utility company, that may apply to all or a percentage of the excess electricity your solar panels generate. Your utility company will then deduct this value from your monthly utility bill.
• Rebates: Solar rebates might be provided by your county or state, or by your local utility company. These rebates are essentially cash back that is applied after you pay for solar panels and before tax credits are calculated.
• Tax Exemptions: Tax exemptions can come in two forms. First, there is sales tax exemption, applied when you purchase solar panels. The second is property tax exemption, which allows you to ignore the added value of your solar system when calculating property tax for your house.
• Tax Credits: Different from tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government.

Federal Solar Incentives

When someone says "solar incentives," you probably think of federal incentives first. You may have heard of the Federal Solar Investment Tax Credit, or ITC. This is a tax credit equal to a specified percentage of the money you spend on your solar system.

The ITC can be applied to solar systems installed after January 1, 2006 on a primary or secondary residence that you own in the United States. Initially, the credit applied to 30% of the total cost — for panels, labor, equipment and accessories — although the percentage may range from 26-30%, depending on when your solar system was installed. There is no cap on the amount you can claim.

Talking to your local Northglenn solar panel installer is the best way to understand how the ITC applies to you.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was bolstered by the passage of the Inflation Reduction Act. With the new provisions, solar installation projects started after January 1, 2022 and completed by the end of 2032 can qualify for a 30% tax credit. The amount of the credit will then see a slight annual decrease until the end of the current Clean Energy Credit in 2035. The program expansion also makes it easier to get credit for energy storage systems, starting in 2023.

More information about the new Inflation Reduction Act can be found here. The best way to fully understand how the new Clean Energy Credit will apply to you is to get in touch with your local Northglenn solar panel company.

State & Local Solar Incentives

Some solar incentives are often also provided at the state and local level. As with federal incentives, these might include rebates, tax credits and more. These solar incentives — which might be handled by your county or municipality, or by the state of Colorado — might be offered for only a limited time, or on an ongoing basis.

Next Steps for Installing Solar in Northglenn

Solar energy use nationwide has significantly increased in the past 15 years, in part due to the proliferation of solar incentives. You might receive these incentives from your local utility company, the Colorado government or the federal government. We suggest talking to your local Northglenn solar installer for more information about these incentives and to make sure that you're getting all of the money you can for your solar system.