Solar tax credits and incentives can significantly reduce your total cost of investment—making solar ownership a more accessible and attractive option for many homeowners. The federal Residential Clean Energy Credit (RCEC), for example, allows eligible homeowners to deduct up to 30% of the cost of their solar panel installation from their federal income tax liability for the year of purchase.
However, you must have sufficient tax liability to benefit from the credit. State, municipal, and utility credits may also be available. Because solar tax credits and exemptions are designed to incentivize the purchase of solar energy systems, homeowners who opt for a solar lease or PPA plans (both considered “third-party ownership” plans) are not eligible for these incentives. However, your solar provider (the owner) may be eligible for tax credits and incentives and can choose to leverage these savings to offer low-cost PPA and lease plans, like we do here at Palmetto. Learn more about
Solar Credits and Incentives, including eligibility and application requirements, in our Support Center.
*The content herein is for educational purposes only and should not be relied upon for any other use. Palmetto does not provide tax, legal, or accounting advice. Please consult your tax, legal, and accounting advisors to determine your eligibility for any incentives or credits.