2023 Solar Incentives Guide for Grenada, MS - Tax Credits & Rebates

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

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

The term "solar incentives" refers to financial incentives that are in place to encourage people to use renewable energy by making solar panels more affordable. Solar incentives could include cash back, upfront discounts or credit towards your monthly utility bill. Some incentives are provided by the federal government, some by the Mississippi government and some by your utility company, county or municipality. Some broad categories of solar incentives include:

• Net Metering: Make sure you talk to your Grenada 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.
• Rebates: Solar rebates may be offered by your local utility company, or by your state or county. These rebates work as partial refunds that are applied after you purchase a solar system and before tax credits are calculated.
• Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the government.
• Tax Exemptions: Tax exemptions may come in two forms. First, there is sales tax exemption, applied at the time you purchase your solar panels. The second is property tax exemption. This allows you to ignore the added value of your solar system when calculating property tax for your home.

Federal Solar Incentives

Federal solar incentives are probably the first thing that you think of when thinking about solar incentives. The solar incentive that you may be most familiar with is the Federal Solar Investment Tax Credit (ITC), which provides a credit on your taxes equal to a specified percentage of the cost of your solar system.

The ITC applies to the total cost of solar panel installation, including the panels themselves as well as accessories, labor and equipment. This credit can be claimed for panels installed after January 1, 2006 on a primary or secondary residence that you own and that is located in the United States. The tax credit ranges from 26-30% of total costs depending on when your project was completed. There is no maximum claim amount.

Speaking with your local Grenada solar panel installer is the best way to learn more about how the ITC may apply to your situation.

The ITC has been renewed and expanded following the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. The new Clean Energy Credit is valid until 2035. You can now receive a 30% credit for solar systems installed between 2022 and 2032. This credit will then be decreased by a few percentage points every year until the date of expiration. Starting in 2023, the expansion will also make it easier to get credit for energy storage systems.

More information about the new Inflation Reduction Act can be found here. Your local Grenada solar panel installers are the best people to answer your questions regarding the new Clean Energy Credit and how it applies to you.

State & Local Solar Incentives

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

Next Steps for Installing Solar in Grenada

Solar incentives might come from the federal government, the Mississippi government or your local utility company. The variety of solar incentives available has facilitated the nationwide growth of solar energy use in the last 15 years. When you're ready to make the switch to solar energy, getting in touch with your local Grenada solar panel installation expert is an excellent place to start.