Rebates & Tax Incentives
Solar power offers several benefits, including energy independence and reduced reliance on emission producing oil, coal, natural gas and other fossil fuel generated power. This happens through the production of clean energy from the earth's most abundant renewable source, the sun.
It is often the case that solar power provides its largest financial benefit during periods when utility-generated electric supplies are limited and wholesale electric prices are highest. Federal and regional government policy-makers in the United States regularly enact legislation designed encourage the use of solar power systems by lowering their initial costs.
Legislation
Tax Credits
Specific federal and state tax laws allow private companies and homeowners to credit the purchase price of their solar power systems against their annual tax payment.
Incentives
Rebates: Utilities are required to provide incentives to encourage the development of customer-owned solar power systems based upon on-site capacity or size.
Net-metering: Utilities are required to offer a credit on the customer's bill for excess solar generated electricity provided to the utility from the customer's own solar system; excess solar generated electricity may not exceed the customer's own annual load.
Renewable Energy Credits (REC's)
REC transactions occur in many regions based on the production of clean power; utilities are required to purchase a specific number of RECs from clean power generators to meet state mandated Renewable Portfolio Standards (RPS), or RECs may be traded on the open market to willing buyers.