Chapter 3: Solar Programs Cost & Savings
Installing solar panels doesn’t just lower your electric bill—it also opens the door to a variety of financial incentives, tax credits, and rebate programs that significantly reduce the upfront cost. This lesson breaks down the most important savings opportunities available at the federal, state, and local levels, so you can make a fully informed decision and maximize your return on investment.
IN THIS LESSON
Federal Solar Investment Tax Credit (ITC)
One of the most impactful incentives available is the Federal Solar Investment Tax Credit (ITC). Here’s how it works:
✅ 30% Tax Credit: You can deduct 30% of the total cost of your solar energy system from your federal taxes.
🛠️ Includes Equipment + Labor: This credit applies to panels, inverters, mounting equipment, permitting, inspection, and installation.
📅 Available Through 2032: The 30% rate is currently locked in through 2032. After that, it will gradually decrease unless extended.
💡 Eligibility: You must own (not lease) the system and have taxable income to benefit from the credit.
💬 Example: If your system costs $60,000, you could reduce your federal tax liability by $18,000 through the ITC.
Stacking the Savings
These incentives can be combined to dramatically reduce your total cost:
Potential Savings
Incentive Type
30% of system cost
Federal ITC
State Rebates (Currently none in Connecticut)
$500–$5,000+
Varies by location
Local Rebates
Monthly utility credits
Net Metering
Stacked together, these programs can cover 40–60% or more of your total system cost.
LOCAL INCENTIVES
Local & Utility Company Incentives
Some cities and utility providers offer their own solar benefits:
Net Metering Programs: Excess energy your system produces is sent to the grid in exchange for bill credits.
Utility Rebates: Some utilities provide direct rebates for installing solar, especially if your system reduces peak load.
Property Tax Exemptions: Many local governments exclude the added value of a solar system from your property taxes.
Sales Tax Exemptions: Some states waive sales tax on solar system equipment, reducing overall cost at purchase.
Key Takeaway:
Solar doesn’t just reduce your electricity bill—it unlocks thousands of dollars in savings through tax credits, rebates, and performance incentives. By leveraging these programs, you can make solar more affordable and see a faster return on your investment.
Want to Know What You Qualify For? Let’s Break It Down Together
Every home is different—and so are the solar incentives available to you. Let’s find out what rebates, tax credits, and savings you qualify for based on your location and energy usage.
➡️ Connect with your SolarShip specialist now and receive a custom savings breakdown—free of charge.