2023 Solar Incentives Guide for Griffith, IN - Tax Credits & Rebates

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

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

The phrase "solar incentives" refers broadly to financial incentives designed to encourage the use of renewable energy by making solar panels more affordable. Different types of incentives, such as discounts, cash back or monthly utility bill credits, may be available to you. Certain incentives may be provided via the state of Indiana, by your utility company or by county or municipality, while other incentives are federal. Some solar incentives you might qualify for are:

• Rebates: Some solar companies will help you claim a rebate, or partial refund after purchase, for your solar panels. States or counties will also sometimes offer limited-time rebates. The value of a rebate will usually be deducted from the total price before tax credits are calculated.
• Net Metering: Don't forget to talk with your Griffith utility company about signing a net metering contract. This will allow you to receive credit towards your monthly utility bill for the value of excess energy generated by your solar panels. You may receive either a dollar-for-dollar credit or a percentage of the value.
• Tax Exemptions: Your solar system may qualify for exemptions on both sales and property tax. Sales tax exemptions come into effect at the time of purchase. Property tax exemptions let you ignore the value that solar panels add when calculating property taxes on your home.
• Tax Credits: These credits are dollar-for-dollar reductions (not deductions) in how much income tax you owe the government.

Federal Solar Incentives

Federal incentives are the type of incentives that you are most likely to have heard of. One of the incentives many people are likely to be familiar with is the Federal Solar Investment Tax Credit (ITC). The ITC is a tax credit for a predetermined percentage of your solar system's cost.

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. Originally, the tax credit was for 30% of the total cost — for panels, labor, accessories and equipment — although that amount may range from 26-30%, depending on the installation date of your solar system. There is no cap on the amount you can claim.

Reaching out to your local Griffith solar panel installation expert is the best way to learn more about how the ITC may apply to your situation.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now referred to as the Clean Energy Credit. The Clean Energy Credit re-raises the credit up to 30% for solar installations undertaken between January 1, 2022 and December 31, 2032. After 2032, the credit percentage will see a slight decrease annually until the end of the program in 2035. Beginning in 2023, it will also be easier to claim credits for energy storage systems under the new laws.

More information about the new Inflation Reduction Act can be found here. The easiest way to learn more about how the new Clean Energy Credit applies to you is to get in touch with your local Griffith solar panel installation expert.

State & Local Solar Incentives

There are more than just federal solar incentives; tax credits, rebates and more are often offered at the state and local level. Certain incentives are ongoing, while others may only be available for a limited time. These incentives may be provided by the Indiana government, or by your county or municipality.

Next Steps for Installing Solar in Griffith

Solar incentives may come from your local utlity company, the Indiana government or the federal government. The variety of available solar incentives has facilitated the nationwide growth of solar energy use in the last 15 years. It is a good idea to talk to your local Griffith solar installer to learn more about these incentives and to make sure that you're getting the most money possible for your solar system.