As the cost of electricity continues to rise, many homeowners in Northern Virginia are turning to solar power as a way to save money and reduce their carbon footprint. In addition to the long-term benefits of solar power, there are also several incentives available to homeowners who install solar panels on their homes. In this blog post, we will discuss three solar incentives available to homeowners in Northern Virginia.
Federal Solar Tax Credit
The federal solar tax credit, also known as the investment tax credit (ITC), is available to homeowners who install solar panels on their homes. This tax credit allows homeowners to deduct 26 percent of the total cost of their solar panel system from their federal taxes. For example, if a homeowner spends $20,000 installing a solar panel system on their home, they can deduct $5,200 from their federal taxes. However, this tax credit is set to decrease to 22 percent at the end of 2022, so homeowners should act fast to take advantage of this incentive.
Virginia Solar Tax Credit
In addition to the federal solar tax credit, Virginia also offers a state-level tax credit for solar panel installations. The Virginia solar tax credit allows homeowners to deduct 20 percent of the total cost of their solar panel system from their state taxes, up to a maximum of $5,000. To be eligible for this tax credit, the solar panel system must be installed on a Virginia residence and the homeowner must have a Virginia tax liability.
Net Metering
Net metering is a program offered by utility companies that allows homeowners with solar panels to receive credits on their utility bills for any excess energy their panels produce. This means that homeowners can sell the excess energy they produce back to the utility company and receive credits on their bill. Net metering is available to all homeowners with solar panels in Northern Virginia, regardless of the size of their system.
