2025 Solar Incentives Guide for Fort Thomas, KY - Tax Credits & Rebates

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

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

Solar incentives are intended to make renewable energy usage more affordable via financial incentives to help people install solar panels on their homes. Various kinds of incentives, like discounts, cash back or monthly utility bill credits, might be available to you. Some incentives may be provided via the Kentucky government, by your utility company or by county or municipality, while others are federal. Types of solar incentives might include:

• 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 come off the total price before any tax credits are calculated.
• Tax Credits: Tax credits are dollar-for-dollar reductions (not deductions) in how much in taxes you owe the federal government.
• Tax Exemptions: Tax exemptions can come in one of two forms. First, there is sales tax exemption, applied when you purchase solar panels. The second is property tax exemption. This allows you to exclude the added value of your solar system when calculating property tax for your house.
• Net Metering: You may be able to sign a net metering agreement with your Fort Thomas 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.

Federal Solar Incentives

When you hear the term "solar incentives," federal incentives may be the first thing that comes to mind. One of the incentives that most people are probably familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a certain percentage of your solar system's cost.

The ITC can be credited towards the value of a solar system installed on your primary or secondary residence in the United States. The solar system has to have been installed after January 1, 2006, on a property owned by you for you to claim the credit. The ITC initially covered 30% of all system costs (panels, labor, accessories and equipment), although the amount has fluctuated over the last few 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.

Your local Fort Thomas solar panel installation expert can give you more information about the ITC and how it may apply to your situation.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now dubbed the Clean Energy Credit. For solar systems installed between January 1, 2022, and December 31, 2032, homeowners can apply for a credit equal to 30% of the total cost. After 2033, the percentage will decrease annually until the Clean Energy Credit expires in 2035. Starting in 2023, the expansion will also make credits for energy storage systems even easier to claim.

Click here to learn more about the new Inflation Reduction Act. To fully understand how the new Clean Energy Credit applies to you, talk to your local Fort Thomas solar installers.

State & Local Solar Incentives

Federal solar incentives are not your only option; rebates, tax credits and more may be offered at the local or state level. These incentives might be provided by the Kentucky government, or by your county or municipality. Some are ongoing, while others are available for a limited time.

Next Steps for Installing Solar in Fort Thomas

There are many kinds of solar incentives: those given by the federal government, those provided by the Kentucky government and those offered by local utility companies, to name a few. Solar energy use has increased enormously in the last 15 years, partially due to these incentives. We recommend talking to your local Fort Thomas solar installation company to learn more about these incentives and to be sure that you're getting the largest number possible for your solar panels.