Charlotte homeowners considering adding solar panels to their home may be worried about how it could impact their taxes. Fortunately, North Carolinians have several incentives that add even more compelling financial reasons to go solar. To find out more about the tax incentives available to qualified NC homeowners, keep reading.
Federal Solar Tax Credit
Want to potentially reduce the cost of your residential solar system by up to 26%? With the federal solar tax credit currently available through the end of 2022, that may be within your reach. However, this tax credit falls to 22% for residential solar systems in 2023 and will not be available after that year, so it’s worth considering installing solar panels sooner rather than later. This tax credit also only applies to qualified homeowners who either purchase their solar panel system outright or with a loan, so double-check its availability for your unique situation.
Solar Property Tax Exemption
Homes with solar energy systems installed can have selling prices up to 4% higher than homes without, according to a study done by Zillow. So having a solar system installed may raise your home’s value, which would normally raise your home’s property taxes. However, solar panel systems installed for residential purposes are not included on property tax assessments. This property tax exemption is a pretty big benefit that can pay off come tax time.
Once your solar panels are installed and generating electricity for your home, there’s still a big opportunity available for potential monthly savings. Your solar panels may produce more electricity than your home needs, especially during the long, sunny days of summer. While you could store this excess electricity in a battery backup system (and we encourage you to do so!), there is another option for putting this excess electricity to use.
You may be able to send excess electricity back to the grid and in exchange, you may get credits on your next electric bill in a process known as net metering. That way, you benefit from all the energy your solar panels generate, regardless of whether your home uses it or not.
Go Solar & Save With POWERHOME SOLAR
Our Charlotte-based solar experts are familiar with the potential savings for going solar! If you’re eager to learn more about the tax incentives and other savings, including the potential to save thousands of dollars on your electric bills, contact your local POWERHOME SOLAR team today. We’d love to tell you more about how solar energy protects the environment — and your wallet.