Did you know that Colorado is one of the sunniest places in the US?
Many Colorado residents have taken advantage of photovoltaic systems. A photovoltaic system is the composition of several solar panels. These panels convert the energy they receive from the sun to electric currents.
The state of Colorado provides incentives, rebates, and tax breaks on those with solar panels. It’s their way to encourage people to switch to using renewable energy. Want to get something back from your investment in solar panels?
Continue reading and find out the advantages of the Colorado solar incentives.
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Tax Credit Your Income
One of the home solar tax incentives is the investment tax credit.
The federal government offers an investment tax credit (ITC) to solar panel owners. Property owners can claim 26% of the cost of their photovoltaic system. They can also credit it on their income taxes.
For example, the solar panel you bought cost $15,650.00. Multiply it to 26%, and you would get $4,069.00. You can get $4,069.00 deducted from your federal taxes.
However, the offer is available until the end of 2022. Take note that there is a gradual decrease in the percentage presented.
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Installation of Solar Panels Are Tax Exempted
Installing solar panels in your home can increase its value. They exclude this upgrade in the taxes you pay for your properties. The government won’t penalize you for the installation of solar power systems.
The state increases your property tax when doing projects to increase their value. Renovations, remodeling, and other additions increase your taxes, too. However, it’s not applicable for renewable energy equipment.
Another tax break is the sale and use of solar power systems. It won’t ask for sales tax when you buy your solar panels.
With this, you can increase the value of your home if you plan on selling it. You don’t have to worry about paying property taxes.
Also read: Skills That Can Hone Your Finance and Taxation Game
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Net Metering
One of the Colorado solar incentives you can avail of is net metering. It’s a billing method where they credit solar power system owners for adding electricity to the grid.
There are days where your solar power system produces more energy than you need. You can sell the excess energy to the grid or save money.
For example, the excess energy you produce in a month costs $45.00, and your electricity bill is $70.00. You can deduct the amount of your contribution to your account. Thus, you only pay $25.00 for the month.
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Rebates When Buying Solar Panels
A solar company can offer a cash rebate upon the procurement of solar panels.
There are utility companies that offer rebates to homeowners. It’s eligible for residential and community solar power systems. Clients with solar panels can receive a certain amount of cash to cover their solar expenses.
Some rebates may depend on the kilowatt your panels produce. The rebates can vary depending on where you are residing. Thus, it’s best to ask your local utility for solar companies that offer a good discount.
How to Take Advantage of Colorado Solar Incentives
These are ways you can take advantage of your Colorado solar incentives. There are many tax breaks for solar you can apply. There are solar companies that offer rebates when you buy solar panels.
You can save and earn from net metering when you install a solar power system in your home. Want to learn more about going solar? Check out our other blog posts to discover related content!
