Financial and Environmental Benefits of Residential Solar


Solar power is the earth’s most abundant resource of energy. As one of the cheapest forms of electricity across the United States, solar dramatically reduces greenhouse gas emissions and is proven to help slow climate change.

According to, the carbon emissions that have been reduced by solar installations across the nation equates to planting over 1.6 billion trees. By switching to solar, you can reduce your own carbon footprint and help better the environment for generations. It’s literally a breath of fresh air.

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Utility rates are continuously on the rise year over year. Solar not only significantly reduces your electricity costs, but it offers you long term price protection throughout the length of your agreement.

Depending on the state you live in, you’re also eligible for net metering which allows you to build credits with your utility company for every time your system overproduces — that extra energy will be pushed into the grid and you’ll be credited on your account for future use.

Additional benefits*:

  • Lower monthly electricity bill
  • Stable and predictable energy costs
  • Increase in your home’s resale value¹
  • 26% federal tax credit for purchased systems

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Federal Solar Incentive: Tax Credit for Purchased Systems

Since the 2006 implementation of the federal solar tax credit, also known as the investment tax credit (ITC), it has proven to be a substantial factor behind solar adoption in the United States.

Solar power system owners are eligible for this tax credit which is worth 26% of the total cost of the system through the end of 2020. After 2020, the percentage will decrease each year and then expire completely for residential solar systems purchased after 2021. After 2021, the ITC will only apply for commercial solar systems at 10% of the total cost of the system.

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State Incentives & Rebates

Depending on the state you live in, there may be incentives and rebates available to you when you switch to solar.

Some incentives, like the ITC, are specific to purchased systems (like state tax credits) and others apply to lease and PPA (power purchase agreement) customers. Depending on where you live, you could be eligible for SRECs (solar renewable energy credits), PBIs (performance-based incentives), net metering, and any rebates or incentives that your utility company may have to offer. The utility rebates tend to be first come first serve, so you should be proactive when claiming your solar benefits.

Find out what additional financial perks you can receive by switching to solar in your state.

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Learn how to go solar in your state.