Energy expert shares game-changing tips on enormous solar panel incentives: 'You get this hilariously massive refund check'

A tax expert shared insights into taking advantage of solar tax credits and rebates on YouTube, helping people save hundreds or thousands on installation. 

The scoop

Alix, a senior researcher at EnergySage, breaks down the difference between tax credits and tax rebates in a helpful video, which explains how credits and rebates can save you money but don't work quite the same way.

Tax credits are a reduction on your tax bill, so if you owe $5,000 and receive a tax credit of $3,000, you only have to pay $2,000.

Rebates put money in your pocket even sooner. Some are upfront, meaning you will get your money right away — you may even get the rebate before you've installed your solar panels. If not, the rebate should arrive within a few months.

Tax credits come from the federal government. However, rebates can come from various entities, such as state or local governing bodies or even solar panel manufacturers and installers. 

Unlike tax credits, rebates have dollar caps. For tax credits on solar installation, you can get 30% of the cost back. The dollar amount doesn't matter, but rebates are usually capped at a few thousand dollars. Remember, you can qualify for credits and rebates to maximize your savings. 

Alix also advises low-income households to check for extra clean energy rebates. If your income meets the threshold, your rebates may be capped at a higher amount.

If you're ready to start your solar process, use EnergySage's free calculator to find installation quotes and estimates near you. 

How it's helping

Understanding tax credits and rebates for solar installation could help you save hundreds or thousands of dollars. Beyond these incredible incentives, SolarReviews says the average U.S. household can save as much as $1,500 annually on electric bills.

If you were to install home solar panels, which of these factors would be your primary motivation? Energy independence ⚡ Lower power bills 💰 Helping the planet 🌎 No chance I ever go solar 🚫 Click your choice to see results and speak your mind.

Even better, homeowners can enjoy these impressive savings while doing the planet a favor. According to Energy 5, one residential solar system prevents up to four tons of pollution. This can benefit everyone by helping slow the planet's overheating, which has been having a vast range of catastrophic impacts. 

These incentives may not be around forever, though. Whether President Donald Trump will keep the Inflation Reduction Act benefits in place is uncertain, and he's already moved to freeze certain clean energy incentives. Make sure you use these incentives while they're still available.

What everyone's saying

Many people are saving money on utility bills and getting a large credit or rebate. Some shared tips and stories about solar tax credits and rebates on a Reddit post. 

One commenter advised, "Just remember you do not have to pay cash. You can finance the system and still get the full credit."

Someone else shared their positive experience with IRA incentives. They said, "You get this hilariously massive tax refund check. I had like $20k+ refund the year I got my panels."

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