How government money can help you go solar

How government money can help you go solar

Going solar saves you significant money in the long run.

But did you know that in the short run, all kinds of federal, state and local cash incentives can pay for an even more significant share of your purchase cost?

That just two federal programs combined can give you back as much as half of your solar installation’s purchase price?

That a few – for commercial installations – pay as much as $5 million?

And that there are even more cash incentives where those came from? Not only from the federal government, but also from the four states we serve – Maryland, Pennsylvania, Virginia and West Virginia – plus many of their counties and electric utilities?

Take a few minutes to look over the list below. If any of the incentives there interest you, please contact us for more information. And if they motivate you to go solar sooner rather than later, we’ll be more than happy to help you with the qualifying paperwork.

Federal Solar Credits and Incentives

IRS Residential Energy Efficient Property Tax Credit – Your federal tax credit will be 26% of your installation price. You’ll need to include form 5695 with your Federal Tax return. This credit can be rolled over. On January 1, 2021, it drops to 20%.

USDA REAP program – Grants up to $20,000 for farms or small businesses located outside cities of 50,000+ population

USDA High Energy Cost Federal Grant Program – Grants of up to $5 million.

IRS Residential Energy Conservation Subsidy Exclusion – 100% subsidy for energy efficient improvements, including solar, to single- and multi-family residences

Residential Energy Efficient Tax Credit – Federal Energy Incentive – Up to $1500 for residential energy efficiency improvements including solar.

State and Local Solar Credits and Incentives

Maryland

The Maryland Energy Administration’s Energy Storage Tax Credit Program has $266,370 to give away to homeowners and $437,373 to businesses. It reimburses 30% of the cost of installing battery backup storage to a new or existing solar system, up to $5,000 for a residential project and $75,000 for commercial. We can help you with the required paperwork and inspections. Then, between the state tax credit and the 26% federal energy-saving tax credit, you can save about half the cost of of your home’s battery storage system.

Maryland Clean Energy Grant – $1,000 per solar (photovoltaic) project for Maryland homes and businesses.

The state’s Clean Energy Grant Program Residential Solar Rebate Program rebates $500 per kilowatt-hour of electricity saved by solar, to a $10,000 maximum.

Anne Arundel, Baltimore,  CarrollHarfordHowardMontgomery, and Prince George’s Counties all offer property tax credits. These range from 50% to 80% of assessed property taxes with maximums of $5,000 to $5 million. 

Pennsylvania

Pennsylvania Sunshine Solar Rebate Program – Available only through state- approved contractors. (Milestone Solar is a Pennsylvania approved solar energy installer.) Your installer will complete and submit the rebate paperwork for you. Your rebate will be $750 per kilowatt your system can generate, up to $7500 or 35% of the installation cost.

High Performance Building Incentives Program – Up to $2 million for energy efficient building improvements, including solar

Pennsylvania Energy Development Authority Grants – Up to $1 million per project to nonprofits, schools, local governments, and industrial businesses for energy efficiency improvements including solar

Metropolitan Edison Company (FirstEnergy Territory) – Up to $25,000 for businesses, nonprofits and schools that go solar

Penelec SET of the Community Foundation for the Alleghenies Grant Program (FirstEnergy Territory) – Up to $25,000 for businesses, nonprofits and schools that go solar

 Virginia

Virginia has some incentives to help residents become energy independent by converting to solar or other renewables. These include property tax incentives, property-assessed clean energy (PACE) financing, a performance-based incentive offered by the Tennessee Valley Authority, and net metering

 Arlington County Green Building Incentive Program – For single- and multi-family homes and commercial buildings

West Virginia Tax Credit

The state has enacted a $2,000 tax credit for residential solar.