2025 Solar Incentives Guide for Hartsville, TN - Tax Credits & Rebates

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

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

The phrase "solar incentives" refers to financial incentives put in place by solar companies and the government to encourage people to use renewable energy by making the installation and use of solar panels more affordable. Different kinds of incentives, like discounts, cash back or credit towards your monthly utility bill, may be available to you. Some incentives may be provided via the Tennessee government, by your utility company or by county or municipality, while others are federal. Categories of solar incentives include:

• Tax Credits: Tax credits decrease, dollar-for-dollar, how much income tax you owe the government. These are different from tax deductions.
• Rebates: Your solar installer might help you claim a rebate, or partial refund after purchase, for your solar system. States or counties will also offer limited-time rebates at various times. The value of a rebate will usually be deducted from your total price before tax credits are calculated.
• Net Metering: Net metering is an incentive you can get after your solar system is up and running. If you have a net metering agreement with your Hartsville utility company, the company will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some places, this is a dollar-for-dollar credit, while in other places you might get refunded a percentage of the value.
• Tax Exemptions: Sales tax exemptions are applied at the point of sale for your solar panels. Property tax exemptions let you exclude the value added by your solar system when you're calculating how much property tax you need to pay.

Federal Solar Incentives

When thinking about solar incentives, federal incentives may be the first thing that comes to mind. The Federal Solar Investment Tax Credit, or ITC, is probably the most well-known federal solar incentive. The ITC offers a tax credit for a predetermined percentage of the cost of your solar system.

The ITC initially applied to 30% of the total cost of solar panel installation, although it has fluctuated slightly over time between 26-30%. The percentage you qualify for will depend on when your solar system was installed. The total cost of installation includes the panels themselves as well as the cost of equipment, labor and accessories. There is no maximum claim amount. The ITC applies 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.

Your local Hartsville solar panel installation expert can give you more information about the ITC and how it may apply to your situation.

In August 2022, the Inflation Reduction Act made revisions to the ITC, now dubbed the Clean Energy Credit. For solar systems installed between January 1, 2022, and December 31, 2032, homeowners may be eligible for a credit for 30% of the total cost. After 2033, the percentage will decrease annually until the Clean Energy Credit ends in 2035. Starting in 2023, it will also be easier to obtain credits for energy storage systems under the new laws.

Click here to learn more about the new Inflation Reduction Act. To understand how the new Clean Energy Credit applies to you, speak with your local Hartsville solar installation expert.

State & Local Solar Incentives

Not all solar incentives are federal; rebates, tax credits and more may be offered at the local or state level. These incentives may be handled by the Tennessee 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 Hartsville

The nationwide use of solar energy has significantly increased in the last 15 years, in part due to the growth in the number of solar incentives. You might receive these incentives from the Tennessee government, the federal government or your local utility company. If you're prepared to make the change to solar energy, getting in touch with your local Hartsville solar panel installation expert is an excellent place to start.