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Solar Energy Incentives

Solar Investment Tax Credit (ITC)

The 30-percent federal investment tax credit (ITC) for solar energy systems in place until December 31st, 2023. Both residential and commercial customers can take advantage of this tax credit, and it applies to all three major types of solar technology. 

  • 2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that in 2017, you can still get a major discounted price for your solar panel system.

  • 2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.

  • 2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.

  • 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.

REAP GRANT

What does this program do?
Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

Who may apply?

  • Agricultural producers with at least 50% of gross income coming from agricultural operations, and

  • Small businesses in eligible rural areas.

NOTE:  Agricultural producers and small businesses must have no outstanding delinquent federal taxes, debt, judgment or debarment.

What is an eligible area?

  • Businesses must be in an area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town. Check eligible business addresses.

  • Agricultural producers may be in rural or non-rural areas.

How may the funds be used?

State Incentives

Some states also offer tax credits or other incentives for installing solar energy systems, which work in a similar way to the federal credit.