2023 Solar Incentives Guide for Carver, MN - Tax Credits & Rebates

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

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

Solar incentives are meant to encourage people to switch to renewable energy by providing incentives meant to lower the financial burden of solar panel installation and use. The incentives may include cash back, upfront discounts or monthly credits towards your utility bill. Some incentives are provided by the federal government, some by the state of Minnesota and some by your specific utility company, county or municipality. Categories of solar incentives include:

• Rebates: Rebates, or cash back after a purchase, are usually applied before any solar tax credits are calculated. Solar rebates can be offered by your local utility company, by your county or by your state.
• Net Metering: Be sure to speak with your Carver utility company about signing a net metering agreement. This will allow you to get a credit towards your monthly utility bill for the value of excess energy your solar panels generate. You might receive either a dollar-for-dollar credit or a percentage of the value.
• Tax Exemptions: These could come in the form of property tax exemptions, which can let you exclude the value added by your solar panels when calculating the taxes you pay on your home. They may also include exemptions on sales tax at the time of purchase.
• Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the federal government. (This is different from a tax deduction.)

Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have some knowledge of. The solar incentive that you're most likely to have heard of is the Federal Solar Investment Tax Credit (ITC), which provides a credit on your taxes equal to a specified 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 panels must have been installed on a property you own after January 1, 2006 for you to be eligible for the credit. The ITC initially covered 30% of all system installation costs (panels, equipment, labor and accessories), although the total amount has fluctuated slightly 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 Carver solar panel installation expert can provide more information about the ITC and how it applies to your situation.

In August 2022, the ITC (now called the Clean Energy Credit) was expanded and extended by the passing of the Inflation Reduction Act. The Clean Energy Credit bolsters the current credit, increasing it up to 30% for solar systems installed between 2022 and 2032. After this, the percentage will be reduced slightly each year until the end of the program in 2035. The program expansion also makes credits for energy storage systems even easier to claim, starting in 2023.

Click here to learn more about the new Inflation Reduction Act. Your local Carver solar panel company 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 by state and local governments. As with federal incentives, these might include rebates, tax credits and more. These incentives might be given out by the Minnesota government, or by your county or municipality. Certain incentives are ongoing, while others are available for a limited time.

Next Steps for Installing Solar in Carver

Solar incentives can come from your local utlity company, the Minnesota government or the federal government. The large number of available 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 Carver solar installation expert for more information about these incentives and to be sure that you're getting the largest number possible for your solar panels.