In 2020, the federal government extended the solar tax credit, which gives North Carolina homeowners more time to claim the credit when they go solar. On top of that, North Carolina offers multiple incentives, including exemptions from state property taxes and net metering, that make solar a great investment. Learn more below about how Raleigh homeowners could potentially benefit from the solar tax credit extension5.
What Is the Federal Solar Tax Credit?
The federal solar tax credit lets Raleigh homeowners claim a tax credit of up to 26% when they install residential solar energy systems. This credit was supposed to expire in 2020, but the federal government extended it until 2023. However, it decreases to 22% in 2023 and expires in 2024.
This is excellent news for Raleigh homeowners because they can now combine the federal solar tax credit with all of North Carolina’s solar energy incentives.
It’s important to note that you cannot claim the federal solar tax credit if you are leasing your solar panel system. However, at Pink Energy, we do not offer leasing options, so this is a non-issue for our clients.
How Many Times Can I Claim the Solar Tax Credit?
According to the Department of Energy, you must claim the solar tax credit on new solar systems or solar systems being used for the first time. Therefore, the solar tax credit can be claimed only once. The savings that you could see from this one-time credit makes the investment worthwhile.
What Are North Carolina’s Solar Energy Incentives?
North Carolina ranks as the No. 4 state in the nation for solar energy installations. Here are some of the solar energy incentives available to Raleigh homeowners:
North Carolina residents can take advantage of net metering, which allows them to potentially exchange excess solar energy for credit on energy bills. Each year, North Carolina gets over 2,600 hours of sunlight. This means that Raleigh homeowners have plenty of opportunities to generate excess solar energy from their solar panels and potentially earn some extra cash.
Property Tax Exemption
North Carolina homeowners with solar panels can receive a property tax exemption of 100% of the appraised value of the system. This tax credit could potentially save you money every year when it’s time to file for taxes. Over time, this benefit could add up and potentially help pay off your solar panels more quickly. Overall, the property tax exemption makes solar energy a strategic investment for your home.
Go Solar Today in Raleigh
Raleigh homeowners know that the housing market is currently booming in the Triangle. This boost means it’s a great time to go solar and potentially increase your home value. When you combine North Carolina’s solar incentives with your new home value, the potential financial benefits are endless.
Contact Pink Energy today to learn more about how we can help you start your solar energy journey! We offer free in-home consultations available at your convenience. Go solar today!