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

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

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

The term "solar incentives" refers broadly to financial incentives designed to encourage people to use renewable energy by making installing and using solar panels more affordable. You might be eligible for several kinds of incentives, including cash back, discounts or credit towards your monthly utility bill, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the Illinois government and others from the federal government. Types of solar incentives might include:

• Tax Credits: Tax credits reduce, dollar-for-dollar, the amount of income tax you owe the federal government. Tax credits differ from tax deductions.
• Solar Renewable Energy Certificate (SREC): SRECs can be sold to your utility company (or other buyers) for cash that is generally considered part of your taxable income. Typically, a certain (small) threshold of energy production must be met before your solar system qualifies for SRECs or similar performance-based incentives. These kinds of incentives are normally handled by your state government.
• Rebates: Rebates, or cash back after a purchase, are normally given before any solar tax credits are calculated. These rebates might be provided by your local utility company, by your county or by your state.
• Tax Exemptions: Tax exemptions may come in one of two forms. The first is sales tax exemption, which is 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 paying property tax on your house.
• Net Metering: You can sign a net metering agreement with your Boulder Hill utility company that will apply to all or a percentage of the excess electricity your solar panels generate. Your utility company will then subtract this value from your utility bill each month.

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Federal Solar Incentives

Federal solar incentives are likely the first thing that comes to mind when you think about solar incentives. You might have heard of the Federal Solar Investment Tax Credit, or ITC. This incentive is a tax credit equal to a specified percentage of the money you spend on solar panels for your home.

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

To more fully understand how the ITC might apply to your situation, contact your local Boulder Hill solar panel installation expert and ask for more information.

The ITC was both renewed and expanded by the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. Homeowners can now qualify for a credit equal to 30% of the total solar system installation costs for projects that began after January 1, 2022, and will be finished by the end of 2032. This percentage will then decrease on a yearly basis until the Clean Energy Credit expires in 2035. Beginning in 2023, it will also be easier to claim credits for energy storage systems under this new program.

Click here to learn more about the new Inflation Reduction Act. To better understand how the new Clean Energy Credit will apply to you, get in touch with your local Boulder Hill solar installation expert.

State & Local Solar Incentives

Some solar incentives are often also offered at the local or state level. Like with federal incentives, these could include rebates, tax credits and more. These incentives might be distributed by your county or municipality, or by the Illinois government. Some incentives may be ongoing, while others are available for a limited time.

Next Steps for Installing Solar in Boulder Hill

Solar energy use nationwide has gone up significantly in the last 15 years, in part thanks to the increase in availability of solar incentives. You may get these incentives from the federal government, the Illinois government or your local utility company. Speak with your local solar panel installer today to discover more about the various programs and to save as much money as possible on a solar system for your Boulder Hill home.