2023 Solar Incentives Guide for Parkersburg, WV - Tax Credits & Rebates

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

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

The term "solar incentives" refers to a wide range of financial incentives implemented to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. Various types of incentives, such as discounts, cash back or monthly utility bill credits, may be available to you. Certain incentives may be offered by the West Virginia government, by your utility company or by county or municipality, while other incentives are federal. You might qualify for any of the following types of solar incentives:

• 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 Parkersburg utility company, it will subtract the value of the excess energy produced by your solar system from your utility bill each month. In some locations, this is a dollar-for-dollar credit, while in others you may make back a percentage of the value.
• Rebates: Some solar companies will help you claim a rebate, or partial refund of your purchase, for your solar system. States or counties will also sometimes offer limited-time rebates. Any rebates you receive will usually be deducted from your total price before any 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: These can come in the form of property tax exemptions, which let you exclude the value added by your solar panels when calculating the taxes you pay on your home. You may also qualify for an exemption on sales tax at the time of purchase.

Federal Solar Incentives

When you think about solar incentives, you probably think of federal incentives first. The solar incentive that you're most likely to have heard of is the Federal Solar Investment Tax Credit (ITC), which gives you a credit on your taxes equal to a percentage of your solar system's cost.

The ITC initially applied to 30% of the cost of installing a solar system, although that number has fluctuated slightly over time between 26-30%. The percentage you qualify for will depend on when your solar system was installed. The cost of installation includes the panels themselves as well as the cost of accessories, equipment and labor. There is no maximum amount you can claim. The ITC can be applied to solar panels installed after January 1, 2006 on your primary or secondary residence. The residence must be owned by you and in the United States.

Your local Parkersburg solar panel installation expert can provide you with more information about the ITC and how it applies to your situation.

In August 2022, the ITC (now titled the Clean Energy Credit) was bolstered by the passage of the Inflation Reduction Act. Under the new program, solar installation projects that are completed between 2022 and 2032 can qualify for a 30% tax credit. The amount of the credit will then decrease slightly each year until the end of the current Clean Energy Credit in 2035. The program expansion also makes it easier to get credit for energy storage systems, beginning in 2023.

More information about the new Inflation Reduction Act can be found here. The best way to learn more about how the new Clean Energy Credit applies to you is to reach out to your local Parkersburg solar panel company with your questions.

State & Local Solar Incentives

Some solar incentives are often also offered at the local or state level. As with federal incentives, these can include tax credits, rebates and more. Incentives might be handled by your county or municipality, or by the state of West Virginia. Some incentives may be available for only a limited time, while others are ongoing.

Next Steps for Installing Solar in Parkersburg

There are a number of different solar incentives: those given by local utility companies, those given by the federal government and those given by the West Virginia government, to name a few. Solar energy use has grown enormously in the last 15 years, partially thanks to these incentives. Call your local solar panel installation company today to learn more and to save as much money as possible on a solar system for your Parkersburg home.