Nara Schoenberg Chicago Tribune
CHICAGO — Wondering how you're going to pay for a $25,000 rooftop solar system?
Two landmark climate laws -- one state, one federal -- offer stimulus that would halve residential solar bills starting this week.
The anti-inflation bill signed into law by President Joe Biden last month provides a 30% tax credit for the cost of home solar panels, and the Illinois Climate and Fair Employment Act offers an incentive projected to save rooftop solar consumers about 40% becomes. : their issues from Thursday
That would bring the price of a $25,000 system down to $7,500.
"It's huge," said Vito Greco, solar program director at Elevate, a Chicago-based nonprofit that supports clean and affordable energy. "If you live in Illinois, now is a good time to get some sun."
People who don't pay enough taxes to claim the 30 percent federal tax credit can still get the full amount, Greco said.
Residents of low- and middle-income communities are eligible for an additional federal tax credit of 10% to 20% of solar project costs, with some details still being worked out.
Federal tax breaks for middle- and high-income people are simple. It's a loan that reduces your tax liability, not a deduction, so you get $7,500 back on a $25,000 scheme.
The federal solar loan, which was extended in accordance with the Inflation Reduction Act and extended for 10 years, applies retrospectively to the beginning of 2022.
The federal government is also offering a 30 percent federal loan for batteries, which are sometimes used to back up home solar systems, and beginning in 2023, the government is expanding that loan to include non-solar batteries, Nick Liberty said. . , Communications Manager at EnergySage, an online marketplace for solar comparisons.
The government solar subsidy is calculated based on how much electricity your solar panels will produce for each kilowatt-hour of energy allocated over the first 15 years.
Edward Carrico from Niles Solar Services installed solar panels on a family home in Zurich in March 2017.
Tribune file photo of John ConstantrusAccording to the Illinois Energy Agency, state solar incentives are equivalent to 40% of the cost of a rooftop solar system, or about $10,000 for a $25,000 system.
Greco also estimated that government incentives account for about 40 percent, saying that "more than half" of residential solar costs are covered by state and federal incentives.
Government incentives may be available directly from your solar company. You don't have to file your taxes to get it. And you don't have to wait 15 years to get an incentive. You pay up front based on the expected performance of your solar panels.
"For consumers (in Illinois), it's great to be able to set the amount early and pay the deposit," said Carey Toboron, product marketer at Energiesage. “In other states, you see price changes over time and you get incentives over time. It has become more transparent and reliable what customers will buy."
The state tax credit is significantly tied to the Climate and Fair Employment Act, which came into effect in September 2021. The country's climate law failed to provide a nearly 40 percent exemption for rooftops, but was reinstated after funding ran out.
After the passage of the state's climate change law, Illinois reinstated the 40 percent stimulus for a period of time and then stopped renewing it. The country announced on Thursday that full incentives are again available for retail customers.
According to EnergySage founder and CEO Vikram Aggarwal, the federal government has offered solar loans to homes in the past, most recently in 2018. However, debt has fallen to 26% this year and should fall to 22% in 2023.
The Disinflation Act increased debt to 30% over 10 years.
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