Has going solar been on your mind, but you’re not sure if you’re ready to take the leap? Now is a great time to talk to the best solar company in Southern Colorado—Steel City Solar. If you’ve been worried about how to finance the switch, never fear! There are some great rebates, loans, and tax incentives available to make installing solar panels a breeze.
But hurry—these great incentives aren’t going to last forever!
What the best solar companies can tell you about net metering and rebates
Net metering is an essential part of going solar—it’s the system that tracks just how much energy your new solar panels produce. Your local electric company will keep track of that metering and will hang on to any extra energy that you produce that goes beyond what you’ve used. At night and on cloudy days, they’ll credit that energy back to you.
By Colorado law, if you produce more energy that you consume over the course of a year, your utility company must reimburse you for that extra produced energy. That means if, at the end of the year, you have a surplus of produced energy, your utility will cut you a check or give you credit toward your next bill!
In addition, several cities and electric companies offer rebates in addition to the yearly surplus refund. If you’re lucky enough to live in Alamosa or another city that uses Xcel Energy, you can actually get paid for the energy you produce! If your system is small (usually residential-sized), they’ll pay you $.005 per kw of energy. If your system is larger, you’ll get $.0375/kw. (If you have property to spare, talk to the experts at the best solar company in Southern Colorado, Steel City Solar, for info on racked solar systems that can qualify for the larger rebate.)
Other cities may also give you a rebate for installing your system. For instance, Colorado Springs will rebate $.20 per watt of a new solar system. Depending on the size of your system, your rebate could be between $100 and $2000!
Green Loans a-plenty
Colorado has some great green energy loan programs to help you fund your solar installation, or even pay your mortgage! If you just purchased or home or are in the market for a new home, the Colorado Energy Mortgage Incentive Program is for you! If you make significant steps to make your home more energy efficient (like installing solar) within 120 days of making the purchase, the state program will pay up to $3000 of your mortgage. If you have a FHA or VA Energy Efficient Mortgage (EEM), they’ll pay twice that—up to $6000!
If your home isn’t newly purchased, there’s another option for you. Colorado’s clean energy program offers the Colorado RENU loan to help you pay for your new solar system. With low interest rates and an easy approval process, it’s a great way to fund your solar project.
Tax incentives will save you thousands
While Colorado’s tax incentives aren’t huge, they do still exist. Thanks to the sales tax exemption for renewable energy, you won’t have to pay any sales tax on your new panels, saving you a lot of money! In addition, even though your new solar system will increase the value of your home by around 4% (That’s around $10,000 on a $230,000 home), the state’s property tax exemption for renewable energy means that you won’t pay any additional property tax on the value of your home. That’s thousands of dollars saved!
Finally, you can’t leave out the federal solar tax credit. (ITC) Though it was up for expiration, Congress extended the amazing tax credit through the end of 2019. With this program, the federal government will credit you 30% of the cost of your new solar system when you file your tax return. There’s no guarantee that the program will extend past the end of this year, so make sure you act FAST to take advantage of this free money!
As you can see, the time for switching to solar is now! At Steel City Solar, we’re proud to be the best solar company in Southern Colorado. We can’t wait to become your lifetime solar partner. Give us a call today to schedule a free, in-home consultation to help you decide if going solar is right for you.