Solar PV systems protect you from utility rate increases, saving you money in the long run. But federal tax credits and Solar Renewable Energy Certificates (SRECs) help you recover some of the initial costs associated with installation.
30% Federal Solar Investment Tax Credit (ITC)
Businesses can earn a federal tax credit equal to 30% of cost for generating electricity through a solar PV system. There’s no maximum credit.
Credits are available for systems installed between January 1, 2006 and December 31, 2016.
Solar Renewable Energy Certificate (SREC) program
SREC certified and registered solar PV systems earn one certificate for every 1,000 kW hours of electricity produced. These certificates, or ‘green tags,’ can then be sold in states that have specific solar energy requirements.
It’s a good way to put your system to work, and recover some of your investment costs.