If you’re considering installing solar in Maryland, one incentive you should be aware of is solar renewable energy certificates (SRECs). Maryland is one of the few states that offers this performance-based incentive to people generating solar electricity. Property owners in Maryland who buy and install a solar panel system can earn hundreds of dollars each year by selling the SRECs their system generates.
Of all the incentives for installing solar panel systems, solar renewable energy certificates (SRECs) are some of the most potent, yet least-understood. You may have heard enigmatic terms like “SREC markets,” “solar renewable portfolio standards,” and “minimum compliance payments” thrown around in discussions about SRECS, but sifting through of all this jargon can be downright mind-numbing. However, SRECs can provide sizable streams of money to owners of solar power systems, so learning about what SRECs are, where they are available, and how they can make solar more financially-rewarding can, quite literally, pay off in a big way. In this article, we aim to answer the simple question: “how do SRECs work?”
Solar energy renewable certificates (SRECs) are some of the most attractive solar incentives available in the country. Many states with renewable portfolio standards (RPS) have special “solar carve-outs” that require a certain amount of a utility’s energy production to come from solar. In these states, utility companies meet the requirement by purchasing SRECs from people producing solar energy.
If you’re considering solar, you’ve probably heard about the federal solar tax credit, also known as the Investment Tax Credit (ITC). The Federal ITC makes solar more affordable for homeowners and businesses by granting a dollar-for-dollar tax deduction equal to 30% of the total cost of a solar energy system.
The Investment Tax Credit (ITC) is a generous incentive from the federal government. It was put in place to encourage uptake of solar energy and other renewable energy systems in 2006. It has been tremendously successful in this goal: the number of solar installations in the US has increased 1,600% since the ITC was introduced.
Many EnergySage customers quickly understand the potential benefits of the ITC, but have questions when it comes to the particulars of how it operates. Frequently, we field questions about whether or not they can claim the ITC at all, and when and how it can be applied to their tax bills. Continue reading
There are a number of financial incentives offered to property owners going solar. From rebates to tax incentives and net metering policies, there are many policies that bring down the cost of installing solar panels on your house. One such policy is the feed-in tariff, which, when designed properly, can provide substantial financial benefits to solar customers.
The Massachusetts solar renewable energy certificate (SREC) program is one of the most advantageous financial incentives for solar available at the state level. Massachusetts property owners who buy and install a solar panel system can earn hundreds (or even thousands) of dollars a year by selling the SRECs the system generates.
The Golden State has always been a front-runner when it comes to solar energy. California is consistently ranked as the top state for solar when it comes to both jobs and installed capacity. Much of their original growth in solar has been due to the California Solar Initiative (CSI). Enacted in 2006, CSI was designed to provide upfront rebates for residential and commercial property owners purchasing solar panel systems. The rebates were available for customers of three utility companies: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E).
The benefits of owning a solar energy system significantly increase when you take advantage of available rebates, tax credits and incentives. This is because these incentives will reduce your upfront installation costs, and as a result accelerate your payback period – paying less up front means breaking even more quickly. These programs can reduce the upfront costs of your system by 30 to 50 percent, but vary state-by-state as well as city-by-city. Read on to see if your city is one of the top 5 cities that incentivize solar!