Home Solar Incentives in 2023

Here’s a guide to government home solar incentives in 2023:


  1. Federal Investment Tax Credit (ITC): The ITC is a federal tax credit that allows homeowners to deduct a percentage of the cost of their solar panel system from their federal income taxes. In 2023, the ITC will provide a credit of 26% of the total cost of the solar panel system. This credit will begin to phase out after 2023, so it’s important to take advantage of it while it’s still available.


  1. State and Local Incentives: In addition to the federal ITC, many states and local governments offer their own incentives for installing solar panels. These can include cash rebates, property tax exemptions, and sales tax exemptions. The availability and amount of these incentives vary by state and locality, so be sure to check with your local government to see what’s available.


  1. Net Metering: Net metering is a policy that allows homeowners with solar panels to receive credits for the excess energy their panels generate and feed back into the grid. These credits can then be used to offset the homeowner’s future electricity bills. Many states have net metering policies in place, but the specifics can vary. It’s important to check with your local utility company to see what their net metering policy is.


  1. Solar Renewable Energy Credits (SRECs): Some states offer SRECs as a way to incentivize homeowners to install solar panels. SRECs are certificates that represent the environmental benefits of the electricity generated by a solar panel system. Homeowners can sell these certificates to utilities or other entities that need to meet renewable energy standards, providing an additional source of revenue.


  1. Energy Efficient Mortgages (EEMs): An EEM is a type of mortgage that allows homeowners to finance the cost of energy-efficient improvements, including solar panel systems, into their mortgage. This can be a great option for homeowners who want to install solar panels but don’t have the cash upfront to pay for them.



Overall, there are many government incentives available to homeowners who want to install solar panels in 2023. It’s important to do your research and see what’s available in your area, as the specifics can vary by state and locality. By taking advantage of these incentives, you can save money on the cost of your solar panel system and reduce your carbon footprint at the same time.


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