Federal And State Programs for Solar Panels

Buying and installing solar panels in the US is not cheap. The costs involved in the process can be financially draining, whether you’re doing it for personal or commercial purposes. The US government provides programs to help homeowners and retail businesses invest in solar energy.

This is a way of moving towards renewable and sustainable energy options that are friendly to the ecosystem and reduce the electricity cost for consumers.

What These Programs Are and Why Might You Consider Signing Up for One

The American government is at the forefront of providing grants to fund the purchase and installation of solar panels for its citizens. You may want to consider applying for one or more of these US government solar programs because they facilitate tax reduction, easy access to quality solar panels, regulate power markets, or provide comprehensive details on energy markets in the US.

What to Consider Before Applying for One

Considering that federal programs for solar panels in the country serve different purposes, you may want to consider a few things before signing up for one. For instance, you should consider the following:

• • Your jurisdiction – Most state incentives are only available for members of that state. Ensure you apply for policies available in your location. The U.S Department of Energy is a great place to start when looking for this help.
• • The purpose – Not all federal programs are available for everyone. Some are provided for homes, while others are for commercial purposes.
• • Tax rebates – Through the investment tax credit, the government allows individuals to benefit from tax credits when installing solar panels. Find out the availability of this provision from the utility before settling on a panel.
• • The power production – Depending on your needs, you may have to pick a solar option to sustain your activities. Some provisions are for small power production facilities (80MW or less), while others are available to cogeneration facilities that require energy exceeding 80MW.
• • Loans available for each option – Check out the most appropriate loans offered for every possibility and other ways to reduce costs legally.
• • Energy certification - Find out the recognized renewal energy certificates and solar renewable energy certificates available in your state.
• • Availability of net metering – Find out if you can connect to the net metering system for more benefits.

Depending on your state, you should ascertain whether you can access the most favorable services before settling for these state and federal programs.

The Available State and Federal Programs and How They Work

Americans have access to multiple federal US government solar programs for their benefit, and they include:

• • Federal investment tax credit - Also known as the ITC, the federal investment tax credit is a program that enables homeowners investing in solar panels to claim 30% of their federal tax liability after installing the panels.
• • Modified accelerated cost recovery system (MACRS) - It’s a depreciation asset recovery system enabling business owners to enjoy a lesser taxable income on their solar panels.
• • Public Utilities Regulatory Act (PURPA) - This law mandates that energy utility companies purchase renewable energy from solar and other clean energy investments.
• • Federal energy regulatory commission (FERC) - This federal agency regulates the interstate transmission of energy within different markets.
• • Solar energy technologies office - SETO is responsible for advancing and deploying solar energy technologies through funding research initiatives in this niche.
• • US energy information administration - EIA takes up the responsibility of collecting, analyzing, and circulating energy-related data to policy makers and energy markets for the better good of the public.

Aside from the solar energy federal programs, individuals can also access state-bound initiatives to make solar energy more beneficial and easily accessible to homeowners. These include:

• • Clean energy funds – This program facilitates the development, demonstration, and deployment of clean energy technology around the US.
• • Low-interest loans – Meager-interest loans are a subset of clean energy funds. States provide affordable loans to buyers that want to invest in solar panels through clean energy funds.
• • Net and virtual metering – Net energy metering is an option that allows you to connect to the grid and benefit from the surplus energy your panel produces. Virtual metering, on the other hand, is a program that enables you to own shares of a community or shared solar from an off-site solar project.
• • On-billing financing and repayment – On-bill financing is a payment option provided by the utility company providing solar services. However, on-repayment is third-party financing offered by the government, financial institutions, or the utility company, with repayments being made directly to the utility company in monthly installments.
• • Renewable energy certificates and solar renewable energy certificates (SRECS) – One megawatt hour of energy is equivalent to renewal energy, while one SREC is equivalent to one MWh of solar energy.
• • Renewable portfolio standards (RPS) – These are regulations expecting a particular amount of renewable energy from utilities.
• • Solar leasing, third-party financing (inclusive of PPAS) – Solar leases enable consumers to pay a standard rate during the lease period. This form of third-party funding allows customers who can’t afford an upfront payment to enjoy solar energy benefits.

Where, When, And How to Apply

Applications for these incentives are available on-site when you visit your preferred solar utility supplier. They provide particular foams you should fill and submit to kick start the application process. To ensure you can access these services, ensure you enquire about their availability beforehand.

Requirements And Documentation Needed

The requirements vary from option to option; however, standard requirements are mandatory for completing these applications. You must provide proof of residency, prove you’re a US citizen through the submission of any government-issued ID, and offer evidence of income, bank account details, and property ownership when soliciting funds for solar installation.

What You’re Expected to Get

What you get heavily depends on the type of US government solar program you select. Nevertheless, the primary goal is to offer assistance in edging you closer to your dream of owning solar energy with or without upfront payments and allowing you to use solar energy through leasing.

Cost, Validity, And Processing Time

Most federal programs are a one-time service you access during the season when you want to install or invest in solar energy. So, in most cases, they are designed to last a lifetime, aside from solar leases and power purchase agreements that last for 10-20 years.

And when it comes to processing time and the cost, each case is different, meaning you may not have the same experience as the next person applying for these benefits.

Bottomline

Before signing any agreement, review the solar panel policy to see what you’ll work with once the PV is installed. Additionally, find out which federal and state programs for solar panels are available in your jurisdiction and how you can benefit from them.