Utility and Tax Incentives

Federal, state, and local governments understand the importance of sustainable energy and the high costs associated with traditional power sources. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives can save customers well over 50% on the cost of energy.*

State Tax Incentives

Effective 2022 California is not offering any state-specific solar tax credit, but it does offer property tax exemptions for new solar installations. People who install solar panels on their home early in the year will still qualify for California’s current Net Energy Metering (NEM) 2.0, but sometime in the fall, all new residential systems will fall under NEM 3.0. The Public Utilities Commission has yet to vote on a final version of NEM 3, but it’s likely to include a reduction in compensation for excess solar energy and might also come with increased fees on solar owners. Depending on where you live you may qualify for rebates or incentives from your local utilities and counties. These incentives are always changing, which is why it is important that you speak with our knowledgeable SunPower solar experts who can update you on all of your potential savings.

Colorado does not offer any state-specific solar tax credit, but it does offer property tax exemptions for the added value of new solar installations. People who install solar panels on their home may not pay any state tax for it. The exemption is for 100% of a renewable energy system’s state tax which means a savings of 2.9% right off the bat! Depending on where you live you may also qualify for rebates or incentives from your local utilities. These vary by utility company, solar photovoltaic (PV) system size, location, and personal income. Incentives are always changing, which is why it is important that you speak with our knowledgeable SunPower solar experts who can update you on all of your potential savings.

Federal Investment Tax Credit – 30%

The solar investment tax credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar. On leased systems, SunPower® collects this incentive and passes the savings on to the homeowner. Don’t wait, prices for solar equipment are on the rise!

Federal Solar ITC Step Down Graphic
Property Tax Exemption

Installing solar panels on your home increases its value up to 20 times your annual energy bill savings. We don’t think you should be penalized for your sustainable decision and many state legislators agree! In California, Colorado, and many other states, new solar installations will be subject to no additional property taxes based on their assessed value.

Increase Home Value

Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax basis investment can be deducted from the sale’s price, reducing the amount of the price that is counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on appreciation.

Your investment in efficient, clean solar power also adds to the tax basis of your home.

*Ask your representative about which incentive you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.