2025 Solar Incentives Guide for Upper Gwynedd, PA - Tax Credits & Rebates

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

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

The phrase "solar incentives" generally refers to financial incentives implemented by the government and by solar companies to encourage increased use of renewable energy by making solar panels more affordable. Different kinds of incentives, including discounts, cash back or monthly utility bill credits, may be available to you. Some incentives may be provided via the state of Pennsylvania, by your utility company or by county or municipality, while others are federal. Types of solar incentives might include:

• Net Metering: Make sure you speak with your Upper Gwynedd utility company about signing a net metering contract. This will allow you to receive credit towards your utility bill every month for the value of excess energy generated by your solar panels. You may receive either a dollar-for-dollar credit or a percentage of the value.
• Solar Renewable Energy Certificate (SREC): SRECs are credits that can be sold to your utility company (or other buyers) for cash that normally counts as part of your taxable income. Typically, there is a small threshold of energy production to meet before your solar system qualifies for SRECs or other performance-based incentives. Incentives like these are normally handled at the state level.
• Rebates: A solar rebate is a partial refund after the purchase of your solar panels. Rebates might be offered by your local utility company, your county or your state. The discount that rebates offer is normally applied to the price of solar panels before calculating tax credits.
• Tax Credits: Tax credits lower, dollar-for-dollar, the amount of income tax you owe the government. These are different from tax deductions.
• Tax Exemptions: Sales tax exemptions are effective at the time of purchase for your solar panels. Property tax exemptions allow you to exclude the value that your solar panels add when you're calculating the amount of property tax you need to pay on your house.

Federal Solar Incentives

When thinking about solar incentives, you likely think of federal incentives first. An incentive many people are likely to be familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a predetermined percentage of the cost of your solar system.

The ITC applies to the total cost of solar system installation, including the panels themselves as well as equipment, accessories and labor. You can claim this credit for panels installed after January 1, 2006, on a primary or secondary residence that you own and that is located in the United States. From its original value of 30% of the total cost, the credit has fluctuated slightly between 26-30%, and you may qualify for varying percentages depending on when your project was completed. There is no maximum amount you can claim.

Contacting your local Upper Gwynedd solar panel installer is the best way to learn more about how the ITC could apply to you.

In August 2022, the Inflation Reduction Act expanded and extended the ITC, now referred to as the Clean Energy Credit. Homeowners are now eligible for a credit equal to 30% of the total solar system installation costs for projects that began after January 1, 2022, and will be finished by the end of 2032. The credit percentage will then begin to decrease yearly until the Clean Energy Credit ends in 2035. Starting in 2023, the expansion will also make credits for energy storage systems even easier to claim.

More information about the new Inflation Reduction Act can be found here. To fully understand how the new Clean Energy Credit will apply to you, get in touch with your local Upper Gwynedd solar installation company.

State & Local Solar Incentives

Some solar incentives may be offered at the local or state level. Similar to federal incentives, these might include rebates, tax credits and more. Some incentives are ongoing, while others are only available for a limited time. These incentives may be offered by the Pennsylvania government, or by your county or municipality.

Next Steps for Installing Solar in Upper Gwynedd

The large number of available solar incentives has helped tremendously increase the adoption of solar energy nationwide over the last 15 years. You can get solar incentives from your local utility company, the Pennsylvania government or the federal government. When you're ready to switch over to solar energy, reaching out to your local Upper Gwynedd solar panel installation expert is a great first step.