By offering incentives for solar panel installations in Fort Wayne, IN, governments, utility companies, and organizations aim to accelerate the adoption of solar energy and reap its numerous environmental, economic, and societal benefits.
These incentives help overcome the initial cost barriers associated with solar installations and encourage individuals and businesses to make the transition to clean, renewable energy.
What Kinds of Solar Incentives are Offered in Fort Wayne, IN?
There are various incentives available in Fort Wayne, IN that can come from different sources such as the state government, utility companies, counties, municipalities, or the federal government.
These incentives can be categorized into 4 different types aimed at promoting solar energy use in the area:
- Tax Exemptions: Property tax exemptions allow homeowners to exclude the added value of their solar panels when calculating their property tax. Additionally, there may be exemptions available for sales tax when purchasing solar equipment.
- Rebates: The local utility company, county, or state can provide cash-back rebates after you have purchased a solar system.
- Tax Credits: Unlike tax deductions, tax credits directly reduce the amount of income tax you owe to the federal government on a dollar-for-dollar basis.
- Net Metering: Once your solar system is functional, you can take advantage of net metering as an incentive. This deducts any value of any surplus energy your system generates from your monthly utility bill.
Are Federal Solar Incentives Offered in Fort Wayne, IN?
Yes. The Federal Solar Investment Tax Credit (ITC) was initially a tax credit offered by the United States federal government to incentivize the adoption of solar energy systems across the United States.
In August 2022, the ITC, now known as the Clean Energy Credit, was strengthened with the passage of the Inflation Reduction Act. This simplified the process and increased the returns.
Homeowners today can receive a credit equivalent to 30% of the total cost of the system installation. This percentage will gradually decrease each year after 2032 until the Clean Energy Credit concludes in 2035.
To determine your exact savings under the ITC, it is advisable to consult with a local Fort Wayne solar panel installer.
What State and Local Solar Incentives are Offered in Fort Wayne, IN?
State and local governments can also offer solar incentives, similar to federal incentives. Within the state of Indiana, there are three current incentives:
- You will pay no sales taxes on a solar system purchase for residential or commercial customers in the state.
- Net Metering options allow you to use the excess energy as a credit on your utility bills. This is offered by all energy providers, but the rate of return varies.
- Property taxes will remain unaffected by installing solar panels; this can apply to a new build or a retrofit. There is no time limit for how long your taxes will remain unaffected by the solar panels; it can continue as long as you own the home.
These incentives currently are ongoing and have no expiration date.
Save Money by Opting for Affordable Eco-Friendly Home Solutions in Fort Wayne, IN
Solar incentives have played a significant role in promoting the adoption of solar energy systems across the United States.
These programs are making solar installations more affordable for homeowners and businesses and contributing to the growth of the solar industry.
For more information on specific programs in your neighborhood, give us a call today!