Government Incentives

Federal Investment Tax Credit (ITC)

As part of the 2009 American Recovery and Reinvestment Act, the Federal government offers a 30 percent Solar Tax Credit from the net system price when a solar power system is purchased. The net system price is the labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home after rebates, discounts, promotions or other state incentives have been deducted. This Solar Tax Credit is available through 2021. However, most subsidies are designed to be short-lived; they help technologies and markets to mature and then fade away. The 30% tax credit was extended in 2015 and is now scheduled to decrease down to 10% by 2021.