Some of the subsidies available for installing solar powered packages and upgrades in a home include federal tax credits and state and local rebates. The federal government provides a tax deduction of 30 percent of the cost of the purchase and installation of complete solar power packages.Continue Reading
This credit applies to systems used for homes, businesses, RVs and boats used as residences, and for generators and expansion of existing systems as long as one panel is installed. If the tax credit exceeds the taxpayer’s liability for the year, the excess credit may be carried forward to the next year. There is no cap to this credit that is due to expire at the end of 2016. In addition to federal credits, most states provide tax or energy credits that range from 25 to 100 percent of the cost of photovoltaic systems that convert sunlight to power and supply public utilities during peak periods.
For example, California provides a 100 percent tax credit for the cost of a photovoltaic system up to a maximum of $100,000. Depending on the county, energy rebates from $0.20 per watt to $3.80 per watt are also available.Learn more about Natural Resources