By installing solar panels, you’ll be participating in a nationwide effort to use more renewable energy sources in day-to-day life. However, in addition to the feel-good benefits involved in that, solar panels also offer some great tax incentives for your household! We’ll discuss Ohio-specific financial benefits you may participate in to potentially increase your overall savings with solar.
ECO-Link Interest Rate Reductions
Ohio has committed to producing 8.5 percent of its total electricity from renewable sources by 2026. With this ambitious goal in mind, the state offers the ECO-Link program, otherwise known as the Energy Conservation for Ohioans program, to incentivize Ohio homeowners to choose efficient energy sources. A partnership between the Office of the Ohio Treasurer of State and certain state banks, the ECO-Link provides an up to 3% interest rate reduction on bank loans for up to seven years when purchasing renewable energy or energy efficiency home upgrades.
Net Metering Opportunities
Your solar panels could produce more electricity than your home needs at peak sunlight hours. While you could store this excess electricity for later use in a battery backup system, another option is available for many Ohioans. If your utility provider participates in net metering,you can send this excess electricity back to the grid for credit on your upcoming electric bills, leading to more potential savings. This process is what’s known as net metering. Ohio has a deregulated energy market, meaning if your current utility provider doesn’t have a net metering policy, you can potentially choose one that does.
To learn more about net metering opportunities available to you, contact your utility provider — or get in touch with your local team of experts at Pink Energy.
Federal Solar Tax Incentives
In addition to state-level tax benefits, there are also federal tax incentives in place that Ohio residents may be able to take advantage of. Homeowners installing solar panels before the end of 2022 mayreceive a 26% tax credit on their federal income taxes of up to 26% of total cost of their solar system and installation. This tax credit is reduced to 22% in 2023 for residential solar panel systems, so it’s worth your while to install a solar system sooner rather than later! This is especially true since the tax credit is set to expire for homeowners entirely by the end of 2023 and will not be available at all in 2024 or after unless Congress renews it. The credit is subject to change, so you should consult with your tax advisor to see if you qualify.
Embrace The Solar Savings
Pink Energy knows the Cincinnati solar landscape. Our local team of experts are familiar with how to help you make the most of your potential with solar, and can help you learn how solar panels could potentially help you save over time. Get in touch with us today for a free quote to find out how solar panels could function as part of your home’s electric setup!