The investment tax credit (ITC), is also known as the federal solar tax credit and allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no monetary cap on its value. The average homeowner saves nearly $9,000 on the cost of going solar because of the ITC.
What is an SREC?
Solar renewable energy certificates (SRECs) are solar incentives that allow you to earn additional income from solar electricity generation. As a homeowner, you earn one SREC for every 1,000 kilowatt-hours (kWhs), of electricity your solar panel system generates. The average system can produce 10-12 credits, with our larger systems reaching 30 credits!
SRECs exist because of state regulations known as renewable portfolio standards (RPS), in which utilities must produce a specific percentage of their electricity from renewable resources. In order to meet these requirements, utilities purchase renewable energy credits.
These certificates are proof that they have either produced renewable electricity or paid someone who is producing renewable electricity for the right to consider that green electricity as their own production.
Sunnova Guarantee: All of our systems Installed through our partner Sunnova have comprehensive 25-year coverage on the entirety of the system! Sunnova also offers free system monitoring! Talk about being in good hands!