2023 Solar Incentives Guide for Beecher, MI - Tax Credits & Rebates

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

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

The term "solar incentives" includes a wide range of financial incentives put in place to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. Incentives can include things like discounts, cash back or credit towards your monthly utility bill. Some incentives are provided by the federal government, while others are provided by the Michigan government or your specific utility company, county or municipality. Some broad categories of solar incentives include:

• Tax Exemptions: These might come in the form of property tax exemptions, which let you 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.
• Net Metering: Net metering factors in after your solar system is up and running. If you have a net metering agreement in place with your Beecher utility company, the company will subtract the value of the excess energy your solar system produces from your utility bill each month. In some areas, this is a dollar-for-dollar credit, while in other places you might make back a percentage of the value.
• Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government. (A tax credit is different from a tax deduction.)
• Rebates: A solar rebate is a partial refund after the purchase of your solar panels. Rebates could be offered by your local utility company, your state or your county. The rebates are usually applied before calculating tax credits.

Federal Solar Incentives

When thinking about solar incentives, you likely think of federal incentives first. One of the incentives many people are probably familiar with is the Federal Solar Investment Tax Credit (ITC). This is a tax credit for a certain percentage of your solar system's cost.

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

Your local Beecher solar panel installer can offer more information about the ITC and how it applies to your situation.

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. The Clean Energy Credit re-raises the credit up to 30% for solar installation projects started after January 1, 2022 and completed by the end of 2032. At this point, 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 obtain credits for energy storage systems with the new act.

More information about the new Inflation Reduction Act can be found here. Your local Beecher solar panel installation experts can answer your questions and explain how the new Clean Energy Credit applies to you.

State & Local Solar Incentives

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

Next Steps for Installing Solar in Beecher

Solar incentives might be offered by your local utlity company, the Michigan government or the federal government. The large number of solar incentives available has facilitated the nationwide growth of solar energy use in the last 15 years. Talking to your local Beecher solar panel installer is the right first step towards getting all the incentives you qualify for when you switch to solar energy.