What are Solar Energy Tax Credits and Rebates for Homeowners?

Renewable Energy Tax Credits

Hundreds of thousands of Sunrun customers have gone solar, and we’ve helped them save hundreds of millions of dollars. For those of you who are currently reviewing solar possibilities for your home - did you know that federal tax credits and state and local refunds and incentives can reduce the overall costs of your solar energy system by thousands?

Federal Solar Tax Credit 

The federal Solar tax credit is popular for homeowners who want to fully purchase their solar energy systems. For sustainable-shoppers who want to own, this tax credit from our government could save you thousands.⁴

Make sure your tax accountant is aware of this credit so that he or she files accordingly. In addition, the tax credit is applied to the total cost after any available state rebates have been deducted.

Federal Tax Credit for Solar Leasing or PPA

Are you considering a solar lease or a power purchase agreement (PPA)? You won’t get left behind. Sunrun maximizes the solar tax credit and passes its benefits to you, too, in the form of lower monthly or PPA payments. Speak with a Sunrun solar advisor for more information. We’ll walk you through potential savings.

Don’t Miss Out on Federal Solar Tax Credits⁵

There is a reason why we say there’s no better time to go solar. There are restrictions (see Energy.gov). Bottom line? Currently, the residential federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax equal to 26% of the final cost of solar energy systems you install on your home. This benefit exists through December 31, 2022. In 2023 the residential tax credit will step down step down to 22%. In 2024, the tax credit for residential solar ends.

Your solar energy system must be installed in your residence (and a second home qualifies, too) by December 31, 2023 to get federal tax benefit. And this tax credit is administered by the IRS. It’s a good idea to have a qualified tax accountant assist you when you file for your taxes.⁶

State Incentives and Rebates

The federal government isn’t the only agency that encourages sustainable energy practices. Many states offer rebates and incentives to help their citizens go solar, and state-level solar incentives are continuing to expand nationwide.

If you’d like more information about your state before you give us a call - visit DSIRE®, which is the Database of State Incentives for Renewables & Efficiency.⁷ There is a wealth of information on this website to help you understand incentives or rebates that could save you thousands of dollars on your solar energy system.

At Sunrun our solar advisors will also walk you through all available rebates and incentives  to ensure you get the best solar deal possible. We offer our products and services in quite a few states, and are working hard to bring Sunrun to everyone across America.

What is the Cost of Solar?

A big question we get from our customers is on the price of a solar panel system (or a solar plus energy storage system). As we covered in this article, there are tax credits and state and local incentives that play an important part in your final costs.

But there are also other factors to consider: weather, utility prices, quality and angle of your roof, household energy needs... to name a few. Our Sunrun technicians come out and inspect your home from top to bottom to ensure that solar energy is a fit for you and your power needs before moving forward.

Start with a complimentary solar quote. Contact us to start saving with solar today.