2023 Solar Incentives Guide for West Galena, IL - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in West Galena.
You'll learn about:
- Local & State Solar Incentives
- Federal Tax Credits (Updated for 2023 and beyond)
- Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
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What Solar Tax Credits, Incentives, and Rebates are Available in West Galena?
Special Assessment for Solar Energy Systems
ComEd - Energy Efficiency Program for Residential
Air Purifier: $50
Clothes Washer: $50
Electric Clothes Dryer: $50
Room Air Conditioner: $25
Refrigerator/Freezer Recycling: Free pickup and $50, plus an additional $10 if recycling a room A/C at the same time
Heating & Cooling
Air Source Heat Pump: $400 - $600
Central A/C: $300 - $600
Ductless Mini-Split Heat Pump: $400
Geothermal Heat Pump: Up to $6,000/home
Furnace Blower Motor (ECM): $50 - $100
Advanced Power Strip: $10
Air Sealing: Up to $400/home
Attic Insulation: Up to $300/home
Duct Sealing: Up to $500/home
Lighting: In-store discounts, varies
Pool Pump: $275
Smart Thermostat: $100
Wall Insulation: Up to $400/home
Solar Renewable Energy Credits
Jo-Carroll Energy - Energy Efficiency Rebate Program
Clothes Dryer: $ 25
Clothes Washer: $25
Heat Pump Clothes Dryer: $50
Refrigerator/Freezer Recycling: $25
Window A/C Recycling: $25
Ground Source Heat Pump: $400 - $700/ton
Air Source Heat Pump & Mini Split: $200/ton
Furnace with ECM Blower Motor: $35/unit
Water Heaters & Flow Restrictors
High Efficiency Electric Water Heater: $125 - $300/unit
Solar Storage Water Heater with Electric Back-Up: $300/unit
Heat Pump Water Heater: $300/unit
Flow Restrictors: $1 - $5/unit
LED Exit Sign: $5/sign
LED Lamp/Fixture: $1/800 lumens/fixture
Occupancy Sensor: $5/sensor
Fireplace Insert: $50
Furnace or Boiler: $125
Water Heater: $50
Pool Heater: $10% of equipment costs up to $150
Hot Tub: $10% of equipment costs up to $150
Fuel Switching: $100
Deck Heater: 10% of equipment costs up to $100
Outdoor Fire Pit: 10% of equipment costs up to $100
Grill: 10% of equipment costs up to $100
Insulation and Air-Sealing:
Home Air-sealing: 50% of cost
Home Energy Audit: Full rebate of audit cost (i.e., $300) after completing projects as recommended in the audit
Home Insulation: 50% of cost
New Home Program: $500
Federal Residential Renewable Energy Tax Credit
Solar incentives are designed to mitigate the cost of installing solar panels on your home. Financial incentives like these are designed to encourage more homeowners to make the switch to renewable energy. Solar incentives may include cash back, upfront discounts or monthly credits towards your utility bill. Some incentives are offered by the federal government, some by the state of Illinois and some by your utility company, county or municipality. Types of solar incentives might include:
- Net Metering: Be sure to talk to your West Galena utility company about signing a net metering contract. This will allow you to receive credit towards your utility bill every month for the value of excess energy generated by your solar panels. You could receive either a dollar-for-dollar credit or a percentage of the value.
- Solar Renewable Energy Certificate (SREC): Typically, solar systems that produce over a threshold (generally small) amount of electricity qualify for SRECs or other similar performance-based incentives. SRECs and performance-based incentives in general are typically provided by your state government. When you receive an SREC, you can sell it to your utility company or another buyer, and this is usually considered part of your taxable income.
- 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.)
- Tax Exemptions: These may come in the form of property tax exemptions, which would allow you to exclude the value of your solar system when calculating the taxes you pay on your home. You could also look for exemptions on sales tax at the time of purchase.
- Rebates: Your solar installer might help you claim a rebate, or partial refund of your purchase, for your solar panels. States or counties will also offer limited-time rebates at various times. If you receive a rebate, that amount will usually be deducted from your total price before tax credits are calculated.
Federal Solar Incentives
Federal incentives are the kind of incentives that you are most likely to have some familiarity with. One of the incentives many people are likely familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a given percentage of your solar system's cost.
The ITC applies to the total cost of solar panel installation, including the panels themselves as well as equipment, accessories and labor. You can claim this credit for panels installed after January 1, 2006 on a primary or secondary residence that you own and that is located in the United States. Originally set at 30% of total costs, the credit has fluctuated over time, and you may qualify for different amounts depending on when your project was completed. There is no maximum amount you can claim.
Curious how the ITC might apply to your specific situation? Get in touch with your local West Galena solar panel installer to get more information.
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 begun after January 1, 2022 and finished by December 31, 2032 can qualify for a 30% tax credit. This percentage will then see a slight annual decrease until the current Clean Energy Credit expires in 2035. Starting in 2023, the expansion to the program will also make credits for energy storage systems even easier to claim.
Click here to learn more about the new Inflation Reduction Act. Your local West Galena solar panel installation experts can answer any questions you have and explain how the new Clean Energy Credit may apply to you.
State & Local Solar Incentives
Some solar incentives may be provided at the state and local level. Like with federal incentives, these could include rebates, tax credits and more. The incentives — which might be given by your county or municipality, or by the state of Illinois — could be offered on an ongoing basis, or for only a limited time.
Next Steps for Installing Solar in West Galena
There are many kinds of solar incentives: those given by local utility companies, those given by the federal government and those given by the Illinois government, to name a few. Solar energy use has increased enormously in the last 15 years, thanks to these incentives. If you're prepared to make the switch to solar energy, reaching out to your local West Galena solar panel installation expert is a great first step.
EcoWatch's West Galena, IL Solar Incentives FAQs
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.