Colorado Solar Tax Credit and Incentives: 12 Things You Should Know
Did you know that Colorado has enough solar to power 438,842 homes? As a result, the state now ranks 13th in solar generation.
One reason for that growth is that more people are now aware of the environmental benefits of solar. After all, it’s a clean energy source, with a carbon footprint far lower than fossil fuels.
over, solar continue to drop every year. Part of that decrease, in turn, is due to numerous solar incentives.
With that said, you may now be wondering if those incentives include a Colorado solar tax credit. Luckily, that’s one of the topics this guide covers. So, read on to learn more about it and the other money-saving programs offered to those who wish to go solar in the state.
Colorado Solar Tax Credit
Does Colorado have a solar tax credit?
Unfortunately, there’s no specific residential or commercial Colorado state solar tax credit.
Don’t let that disappoint you, though, as you can still apply for the federal Investment Tax Credit (ITC). As a nationwide program, it affords homeowners in Colorado a tax credit for solar panels.
over, the Centennial State offers several other tax breaks for solar energy systems. One of these is the Sales and Use Tax Exemption for Renewable Energy Equipment. Another is the Property Tax Exemption for Residential Renewable Energy Equipment.
On top of those are the incentives from local governments and utility companies. Net metering and Power Purchasing Agreements (PPAs) are also available in the state.
Thanks to all those programs, you can start your solar journey in Colorado for much less.
Federal Solar Investment Tax Credit
A tax credit reduces the income taxes you’d otherwise owe the government. It affords you a dollar-for-dollar reduction on your owned income taxes.
The federal solar ITC, in turn, is a tax credit you can apply to a solar energy system’s total installation cost. It has been in place since 2006, the same year it should have expired. However, Congress has moved up its expiration several times since then.
The solar ITC is still available today, thanks to Congress extending it yet again. Although the rate has dropped from the original 30%, it still offers a significant 26% credit.
Clean energy incentives and programs
A clean energy system has many benefits, including saving you money. Several PGE and non-PGE incentive programs exist. Each program is specific to the renewable energy technology you plan to install and has its own eligibility rules.
We can also help you find a contractor who will help you to understand the incentives and which program is right for your needs. Visit Find a Contractor.
COMPARE INCENTIVE PROGRAMS
Disadvantaged Communities Single-Family Affordable Solar Housing (DAC-SASH)
The Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program is administered by GRID Alternatives, a nonprofit that works to provide solar to customers who are in economically or environmentally disadvantaged communities and are under certain income thresholds. GRID provides incentives to cover the full cost of solar panels on customer homes and enables customers to save on their bills every month. To learn more, visit GRID Alternatives.
Wind, fuel cell and other clean energy
Self-Generation Incentive Program (SGIP)
Install alternative energy technologies in your home to receive an incentive. Some examples include wind, fuel cells and battery storage combined with heat and power systems. To learn more about this PGE program, visit Self-Generation Incentive Program (SGIP). To learn more about the battery storage technology and evaluate if it’s right for your home, visit Battery Storage for Residential Customers.
Solar on Multifamily Affordable Housing (SOMAH)
The SOMAH program provides financial incentives for installing photovoltaic (PV) energy systems on multifamily affordable housing. To learn more, visit the SOMAH website.
California Solar Initiative (CSI) thermal program
The final date to submit new solar water heating applications to the CSI-Thermal program was July 31, 2020. Remaining applications must be completed and receive incentive payment(s) before the program closes on October 31, 2024.
NOTE: Incentive program applications are typically completed by your contractor. If you receive incentives, your contractor may discount your up-front costs with your incentive amount for immediate savings.
Net Energy Metering Aggregation Program
The PGE Net Energy Metering Aggregation (NEMA) program may be a good option for customers looking to utilize a renewable energy system to serve the load of multiple meters on the same property, or on adjacent or contiguous properties. To learn more about NEMA, visit Discover Net Energy Metering Aggregation.
The PGE Virtual Net Energy Metering (NEMV) program allows an individually metered multi-unit property to use the output from a renewable generator (e.g., solar panels) account to provide bill savings to individual units. To learn more, visit Virtual Net Energy Meting Overview.
Florida Solar Incentives: Tax Credits and Rebates Guide (2023)
Ready to go solar? Get your free quote today from an approved provider.
Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today’s Homeowner. She earned her bachelor’s degree in psychology from the University of St. Scholastica and her master’s degree from the University of Denver. Before becoming a writer for Today’s Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she’s not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.
Lora Novak meticulously proofreads and edits all commercial content for Today’s Homeowner to guarantee that it contains the most up-to-date information. Lora brings over 12 years of writing, editing, and digital marketing expertise. She’s worked on thousands of articles related to heating, air conditioning, ventilation, roofing, plumbing, lawn/garden, pest control, insurance, and other general homeownership topics.
Today’s Homeowner exists to help you maintain or improve your home safely and effectively. We uphold strict editorial standards and carefully vet the advice and resources referenced in our articles. Click below to learn more about our review process and how we earn money.
Modern house with photovoltaic solar cells on the roof and a thermal solar heating system for alternative energy production
Today’s Homeowner exists to help you maintain or improve your home safely and effectively. We uphold strict editorial standards and carefully vet the advice and resources referenced in our articles. Click below to learn more about our review process and how we earn money.
With energy increasing across the country, now is the time to invest in a stable and predictable renewable energy source like solar. By installing solar panels on your roof, especially in a sunny climate like Florida, you can produce your own electricity at home and minimize your utility expenses.
After the initial installation costs, a solar energy system can save you thousands of dollars per year. Plus, federal, state, and local incentives exist to help lower the cost of your purchase and help you become a producer of solar energy sooner.
How the Solar Tax Credit Works
For these reasons and more, it is a great time to buy solar panels in Florida. Keep reading to learn how purchasing and installing solar panels in Florida can be made more financially accessible.
The Best Solar Incentives, Tax Credits, and Rebates in Florida
There are several public and private incentives in Florida that help you save on your purchase of solar panels:
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a 30% federal tax credit available for home solar systems purchased and installed by the end of 2032. This is a significant chunk of money taken off their income taxes. As well, the ITC has expanded the country’s solar industry. It has helped create hundreds of thousands of jobs while bringing billions of dollars into the economy since it was enacted in 2006.
Florida Solar Property Tax Exemption
Florida will exempt property taxes on the added value to your home that comes with installing a solar energy system. This is another excellent reason to invest in solar!
Florida Net Metering
Electricity companies in Florida have all adopted net energy metering, which is a policy that ensures your solar panels will be connected to the public-utility power grid. That surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid due to net metering. The minimum compensation you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, it remains hugely beneficial for owners of solar energy systems.
Local Utility Rebates
Specific counties and utility companies offer rebate programs to purchase and install solar energy systems. Check out this database for more information regarding your specific circumstances.
Commercial Florida Solar Incentives
Solar Incentives for Nonprofits and Businesses in Florida
Unfortunately, no incentives are available specifically for nonprofits and businesses in Florida. However, some private and local incentive programs may exist depending on where you live and which utility company you use. However, non-tax-exempt businesses are still eligible for a 30% tax credit for solar power systems installed on commercial properties.
USDA REAP Grant
The United States Department of Agriculture (USDA) has launched a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses lower energy costs and consumption by financing loans and grant funding to purchase and install renewable energy systems. You are eligible to participate in the REAP program if you are an agricultural producer with at least 50 percent of your gross income coming from agricultural operations or a small business in eligible rural areas.
State Sales Tax Exemption
The purchase of solar energy systems in Florida is exempted from the state’s sales tax, which saves you a 6% tax.
Florida Resources
As the third-ranked state in the country for solar installations, Florida is a great place to invest in solar. Florida’s warm, sunny weather makes it an excellent environment for solar energy production. Florida averages 237 sunny days per year, making it one of the sunniest states in the United States. When you compare this number to the American average of 205 sunny days per year, Florida appears well-positioned to produce large amounts of solar power.
Instead of searching for the one solar provider in a town hours away, as may be the case in some states, most large towns in Florida will have businesses ready to sell and install photovoltaic systems (PV). With many statewide financial and tax incentives available for purchasers of PV systems, it is no wonder Floridians love solar.
Finally, solar panels can dramatically increase your home’s value. According to Zillow, the average home experiences a 4.1% increase in value after adding a solar power system. In Florida, the average home value increase from solar panels will be close to 9,454.
Sold on solar for your home? Get a free quote from local solar installers.
NC Solar Incentives to Take Advantage of in 2023
Tis’ the season for change! It’s a new year and a great time to take control of your power. Whether you’re tired of paying high electric bills and watching utility rates increase, or you’re ready to switch to clean power, now’s the perfect time to look into your energy independence.
There are a number of powerful financial incentives available to North Carolina residential, commercial, and nonprofit solar projects in 2023. Here’s a rundown of national and local North Carolina solar incentives you may be eligible to tap into this year.
Upfront Tax DisclaimerWe are not tax professionals (surprise!) and this post does not constitute professional tax advice or guidance. If you end up going on your solar journey with us, we can connect you with Lucas Tax and Energy, a CPA specializing in energy related tax issues, that we keep on retainer as a service to our customers.
NC Solar Incentives Guide
Learn how North Carolina solar incentives stack up for homes, businesses, and nonprofits. Find out what you can qualify for and how much you can save!
New and existing NC homes that install solar in 2023 may be eligible to take advantage of the 30% Federal Solar Investment Tax Credit (ITC) for solar.
When this discount is applied to our average sized home solar system (around 7.7kW), you can expect to see roughly 10,500 off of our average turn-key price of 35,000. Let’s dive into the specifics in this section!
30% Federal Solar Investment Tax Credit for Homes
The 30% Federal Solar ITC was established in 2005 by the Energy Policy Act. At first it was intended to last one year, but after several sunny extensions we’re excited to report this incentive will be here to stay at 30% until 2032. You can learn more about the histor y of the tax credit and the most recent extension from the signing of the Inflation Reduction Act here.
30% Solar Energy Tax Credit! | Ask a CPA
How Does the Solar Tax Credit Work?
Since Jan. 1 2022, homeowners who pay federal taxes and have a solar system placed into service by the end of the year are eligible for a tax credit worth 30% of the cost of their system.
This means, for an average 35,000 solar system a homeowner can claim a 10,500 credit when filing their 2023 taxes. In this example, if they owe 11,000 in taxes, they will only need to pay 500 in taxes after claiming the solar ITC (11,000 – 10,500 = 500).
The great part is, there’s no cap on the system value that can be claimed via the Federal Solar Tax Credit. However, there are limits on what is eligible to include in the system cost. System components that can be counted toward the credit include solar panels, racking/mounting equipment, inverters, balance of system (wire, conduit, junction boxes, etc), installation labor (including design, inspection, and permitting fees), and sales use taxes.
Note: energy efficiency upgrades are not included on the above list! We have seen several solar companies try to include items like insulation, LED bulbs, Smart thermostats, etc. as a solar system upgrade. These items are not eligible for the solar ITC.
500 Tesla Powerwall Rebate
Tesla is offering a 500 rebate for each Powerwall installed between now and October 31, 2023. Your Powerwall system can be installed by any Certified Tesla Powerwall providers (like us) to be eligible for this rebate. Once you register your Powerwall(s) with the Tesla app and submit a rebate request, Tesla will send you a check — simple as that! As a Certified Tesla Powerwall installer, we’d be happy to walk you through the process and get you started. Let us know you’re interested in some cash money from Tesla.
Duke Energy Solar Rebate for Homes
The Duke Energy Solar Rebate was a (highly competitive) one-time rebate available to homes, businesses, and nonprofits serviced by Duke Energy in North Carolina. The Duke Energy Solar Rebate began in 2018 as a result of House Bill 589 and concluded in January 2023.
Currently, there are no official plans for the Duke Solar Rebate to return in 2023. However, other solar incentives in North Carolina, such as the Federal Tax Credit, still make it a great time to start your solar journey.
The Countdown Has Started
Duke Energy’s solar net metering changes go into effect 10/1. Get your project started now to lock in legacy net metering benefits.
Other NC Residential Solar Incentives
With many new players joining the hot NC solar market, we’d like to throw out a word of caution to be skeptical if you see an “NC state tax credit” on your solar proposal. Beyond the incentives we’ve outlined, no other significant incentives are available at the Federal or state level in North Carolina. As always, when working with a solar installer, make sure pricing is transparent and terms are clearly defined. Here are a few other things to look for on your solar proposal.
Calculate Your Solar Savings
See solar on your home! Our solar calculator uses your home address, the details you provide, and LIDAR satellite technology (with a dash of AI) to give you a ballpark estimate of how much you could save by going solar.
There are even more solar incentives available for North Carolina businesses to take advantage of in 2023. When combined, the 30% Federal Solar Investment Tax Credit (ITC), Accelerated Bonus Depreciation, and the US Department of Agriculture (USDA) Rural Energy for America Program (REAP) Grant make it possible for businesses to offset 70-90% of the cost of going solar.
While situations where all 4 of these incentives stack together to reach 90% offset are rare, most of our commercial solar customers will see savings of between 40-70% on their solar system with some combination of those incentives.
30% Federal Solar Investment Tax Credit for Businesses
Since there is no cap on the amount you can claim via the Federal Solar ITC, businesses can also claim the 30% solar tax credit.
Businesses that pay federal taxes and have a solar system placed into service by the end of the year are eligible for a tax credit worth 30% of the cost of their system.
This means, for an average 205,000 solar system a business can claim a 61,500 credit when filing their 2023 taxes. This would bring the net cost of the solar system down to 143,500. Similar to a home solar system, there is no cap on a commercial solar system value that can be claimed using the Federal Solar Tax Credit. Spoiler alert: The savings get even more exciting when you factor in additional Bonus Deprecation savings on top of that.
information about the Federal Tax Credit can be found on DSIRE.