Keep more money in your pocket!
HERE’S HOW YOU SAVE
FEDERAL TAX CREDITS
The federal solar tax credit is the best way to significantly reduce the net cost of solar for both residential and commercial installations.
2020-2022 Tax year
New owners of residential and commercial solar can deduct 26 percent of the cost of the system
2023 Tax Year
New owners of new residential and commercial solar can deduct 22 percent of the cost of the system.
2024 Tax Year
New owners of commercial solar energy systems can deduct 10 percent of the cost of the system.
There is no federal credit for residential solar energy systems.
Virginia Solar Renewable Energy Credits (SRECS)
This program allows you to sell carbon credits produced by your solar system through an SRECs broker.
The Virginia Clean Economy Act
This legislation created an SREC market in Virginia through a renewable portfolio standard (RPS) beginning in 2020.
Renewable Portfolio Standard (RPS)
Virginia’s largest utilities are required to provide a certain amount of renewable energy every year or pay a fine. Purchasing SRECs from solar customers (you!) is a way for the utility to meet that requirement.
How does this help me?
SRECs are paid out quarterly to solar customers at current market price per 1000kWh sold and can be sold for up to five calendar years after their date of creation. Depending on your system size, SRECs can save you hundreds annually.
BONUS: Beginning January 1 2023, systems less than 25kWh are exempt from property taxation in VA.
How does it actually work?
You purchase a solar system in 2022 that costs $20,000.
This means you are eligible for a $5,200 tax credit ($20,000 x 26% = $5,200).
If not fully utilized in one tax year, the remaining credit will roll into the next tax year.
Don’t miss out!
Federal solar tax credits for residential systems end after 2023.
If you have been considering
a new solar system,
an expansion to your existing system,
a solar battery backup,
or the addition of a battery to an existing system,
this is the time to install a solar system in order to maximize your savings.
Even more savings!
Charlottesville CITY RESIDENTS
Charlottesville City residents are eligible for a 5-year real estate tax credit. You can save 1% of the cost of your solar system each year which amounts to a 5% system cost reduction over five years.
Adding a solar system to a home will not increase the property tax despite the value of the property increasing.
Charlottesville: Commercial systems in Charlottesville may be eligible for an interest rate buy-down. Resulting interest rates may be as little as 2%.
Non-Profit: Non-profits in Charlottesville may be eligible for an interest rate buy-down. Resulting interest rates may be 0%.
Accelerated Depreciation: 100% bonus appreciation can be taken in the first year.
REAP Grants: The Rural Energy for America Program promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of grants and loan guarantees. Maximum benefits may be 25% of system cost. Learn more.