2024 Solar Incentives Guide for Alsip, IL - Tax Credits & Rebates

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

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

The term "solar incentives" refers to 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. Different kinds of incentives, including cash back, discounts or credit towards your monthly utility bill, may be available to you. Some incentives may be offered by the state of Illinois, by your utility company or by county or municipality, while other incentives are federal. Categories of solar incentives include:

• Tax Credits: Tax credits decrease, dollar-for-dollar, the total amount of tax you owe the federal government. These are different from tax deductions.
• Rebates: A solar rebate is a partial refund credited to your account after you've paid for your solar system. These could be offered by your local utility company, your county or your state. The cash back that you get from the rebates is normally applied before tax credits are calculated.
• Solar Renewable Energy Certificate (SREC): Typically, solar systems that produce more than a predetermined (usually small) amount of electricity will qualify for SRECs or other similar performance-based incentives. SRECs and similar incentives are typically offered at the state level. You can sell SRECs to your utility company or another buyer, and generally the money you make is normally considered part of your taxable income.
• Tax Exemptions: Your solar panel system might qualify for exemptions on both sales and property tax. Sales tax exemptions come into effect at the time of purchase. Property tax exemptions allow you to exclude the value added by your solar panels when calculating property taxes on your house.
• Net Metering: Make sure you talk with your Alsip utility company about signing a net metering agreement. This will allow you to get a credit towards your monthly utility bill for the value of excess energy your solar panels generate. You might receive either a dollar-for-dollar credit or a percentage of the value.

Best Solar Financing

Blue Raven Solar

★★★★★

4.5

• Industry-leading in-house financing
• Competitive pricing
• Excellent reputation
• Doesn't offer solar batteries

Get Estimate

Best for Leasing

Sunrun

★★★★★

4.0

• Expansive service area
• Many financing options
• Some reported issues with customer service
• Some reported issues with door-to-door sales

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 incentives are the kind of incentives that you are most likely to have some knowledge of. It's likely that you've heard of the Federal Solar Investment Tax Credit, or ITC. The ITC is a tax credit equal to a specified percentage of the money you spend installing solar panels.

The ITC applies to the value of solar panels installed on your primary or secondary residence in the United States. The solar system has to have been installed on a property you own after January 1, 2006, for you to claim the credit. Initially, the ITC applied to 30% of all costs (panels, equipment, accessories and labor), although the total amount has fluctuated over the years between 26-30%. The installation date of your solar system will determine what percentage you are eligible for. There is no cap on the claim amount.

Reaching out to your local Alsip solar panel installer is the best way to understand how the ITC applies to your situation.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now dubbed the Clean Energy Credit. Under the new program, solar installation projects started after January 1, 2022, and completed by the end of 2032, might qualify for a 30% tax credit. This percentage will then see a slight annual decrease until the end of the current Clean Energy Credit in 2035. Starting in 2023, the program expansion will also make credits for energy storage systems even easier to claim.

More information about the new Inflation Reduction Act can be found here. Your local Alsip solar panel installers are the best people to answer your questions about the new Clean Energy Credit and how it may apply to you.

State & Local Solar Incentives

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

Next Steps for Installing Solar in Alsip

The expanding number of solar incentives available has enormously increased the use of solar power nationwide over the past 15 years. You may receive solar incentives from your local utility company, the Illinois government or the federal government. It is a good idea to talk to your local Alsip solar installer to learn more about these incentives and to ensure that you're getting all the money you can for your solar panels.