2023 Solar Incentives Guide for Fort Washington, MD - Tax Credits & Rebates

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

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

The term "solar incentives" broadly refers to financial incentives implemented by the government and by solar companies to encourage the use of renewable energy by making the installation and use of solar panels more affordable. Different kinds of incentives, like discounts, cash back or monthly utility bill credits, might be available to you. Some incentives may be handled by the Maryland government, by your utility company or by county or municipality, while other incentives are federal. You might qualify for any of the following types of solar incentives:

• Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the federal government.
• Tax Exemptions: These can 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 house. You could also look for exemptions on sales tax at the time of purchase.
• Solar Renewable Energy Certificate (SREC): SRECs can be sold to your utility company (or other buyers) for money that is generally considered part of your taxable income. Typically, there is a small threshold of energy production to meet before your solar system is eligible for SRECs or other performance-based incentives. These kinds of incentives are normally handled by your state government.
• Rebates: Rebates, or cash back after a purchase, are usually applied before any solar tax credits are calculated. Rebates might be provided by your local utility company, by your state or by your county.
• Net Metering: You may be able to sign a net metering agreement with your Fort Washington utility company. This agreement may apply to all or a percentage of the excess electricity that is generated by your solar panels. They will then deduct this value from your monthly utility bill.

Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have heard of. The solar incentive that you're most familiar with is probably the Federal Solar Investment Tax Credit (ITC), which gives you a credit on your taxes equal to a certain percentage of the cost of your solar system.

The ITC was originally for 30% of the total cost of installing a solar system, although that number has fluctuated slightly over time between 26-30%. The installation date of your solar system will determine what percentage you qualify for. The total cost of installation includes the panels themselves as well as the cost of equipment, labor and accessories. There is no maximum amount you can claim. The ITC can be applied to solar systems installed after January 1, 2006 on your primary or secondary residence. The residence must be in the United States and owned by you.

Contacting your local Fort Washington solar panel installation expert is the best way to understand how the ITC may apply to you.

In August 2022, the ITC (now referred to as the Clean Energy Credit) was bolstered by the passing of the Inflation Reduction Act. Homeowners can now qualify for a credit equal to 30% of the total costs of solar system installation for projects started after January 1, 2022 and completed before the end of 2032. The credit percentage will then decrease yearly until the Clean Energy Credit expires in 2035. The expansion also makes it easier to get credit for energy storage systems, beginning in 2023.

More information about the new Inflation Reduction Act can be found here. The best way to learn more about how the new Clean Energy Credit will apply to you is to talk with your local Fort Washington solar panel company.

State & Local Solar Incentives

Tax credits, rebates and more might be provided at multiple levels. On top of federal solar incentives, there are often state and local ones, too. These incentives might be given out by the Maryland government, or by your county or municipality. Some are available for a limited time, while others are ongoing.

Next Steps for Installing Solar in Fort Washington

The nationwide use of solar energy has gone up significantly in the past 15 years, in part due to the growth in the number of solar incentives. You can obtain these incentives from the federal government, the Maryland government or your local utility company. Your local Fort Washington solar panel installer can give you more information about which incentives you might qualify for, and get you feeling good about making the change to renewable energy today.