If you’ve been considering switching to solar energy, this is the best time to do it to enjoy various incentives. The objective is to reduce the money you spend on acquiring solar panels and installation work. That’s why you should check out the solar incentives your state offers.
For example, you may want to know the Colorado solar incentives to see how much money you’ll save. Know that these incentives will not last forever as the government seeks to incentivize early adoption. So it may scale back the incentives as more people go solar.
To take advantage of this opportunity, here are the six things you need to know about Colorado solar incentives in 2021.
1. Federal Investment Tax Credit (ITC)
The federal investment tax credit (ITC) is a program that aims to lower the cost of getting solar panels. The government allows you to deduct 22% of the solar system cost from your taxes in 2021. That means that if you purchase a solar system worth $20,000, you can subtract a tax credit of $4,400.
Know that the federal ITC percentage will drop to 10% in 2022, so you should invest in solar energy now. To know more about the ITC, search for the top solar companies near me. Here you’ll find specialists who help get the best solar panels and learn how to calculate the ITC.
2. Net Metering
Electricity providers in Colorado offer you a chance to sell the excess solar energy you produce to them. However, instead of getting cash, the amount is deducted from your electricity bill. Net metering is, therefore, a great incentive that’ll help cut your energy expenses.
3. Property Tax Exemption for Residential Renewable Energy Equipment
Solar panel installation is one of the things that’ll increase the value of your property. It’s logical to wonder whether this will lead to high property taxes. The good news is that in Colorado, you’re allowed to deduct the cost of the solar energy equipment when calculating the property taxes.
4. Tax Exemption for the Sale and Use of Solar Energy Systems
When you sell various assets in your home, you’re required to pay a sales tax. You’re, however, exempted from paying this tax when you sell a solar energy system. The government does this to encourage more people to switch to the use of solar power.
5. Local Utility Solar Rebates
To adhere to Colorado’s renewable energy guidelines, the utility companies will turn to homeowners. These companies are willing to pay you to install solar panels on your roof. All you’ve to do is to find out the specific companies offering the local utility solar rebates.
6. Power Purchasing Agreements
The other solar incentive is to enter into a power purchasing agreement with a utility company. This company will agree to purchase your excess solar energy at a given cost. Find a reliable solar specialist who’ll advise you on how these agreements work.
Act Now to Take Advantage of these Colorado Solar Incentives
The Colorado solar incentives targets to lower the costs for renewable energy equipment. Understand that these incentives are for a limited time, and soon they’ll be withdrawn. That’s why you should take advantage of this incredible opportunity to install solar panels on your home.
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