Skyward Solar Power

 

Incentives & Rebates

Skyward will help you understand the incentives and rebates available to you, then guide you through the process of claiming them.

 

Incentives Solar Electric Solar Hot Water Solar Pool Heating
Federal Tax Credit Yes Yes Yes
State Tax Credit Yes Yes Yes
Energy-Efficient Mortgages Yes Yes Yes
Property Tax Abatement Yes No No
Net Metering Yes No No
NC GreenPower Rebates Yes No No
Green Power Switch payments Yes No No
Other incentives Yes Yes Yes
Skyward Solar

Federal Tax Credit
Each year you send a sizable check to the government, in the form of income taxes. But rather than lose that money forever, why not spend it on a solar energy system?

The federal government offers a 30 percent tax credit on solar energy systems for residential applications, with no cap on system cost. A tax credit is more valuable than an equivalent tax deduction because a tax credit reduces the amount of federal taxes you owe—dollar-for-dollar—whereas a deduction only removes a percentage of the tax that is owed.

Spending more on your system than you owe in taxes? This credit can be stretched out for up to five years.

This credit applies to solar electric systems or hot water systems, but not solar pool heating.

North Carolina Tax Credit
In addition to the federal tax credit, North Carolina offers a 35 percent tax credit for residential solar applications.

Because the state tax credit must be subtracted from your federal deduction of state taxes paid, the combined federal and state tax credits are typically around 50% of the cost of the solar energy system.

Energy-Efficient Mortgages
Homeowners can take advantage of energy-efficient mortgages to finance solar energy and other renewables. The federal government insures these loans through the Federal Housing Authority (FHA) or Veterans Affairs (VA) programs, opening up opportunities for many customers who do not qualify for conventional financing.

North Carolina Property Tax Abatement
The value of a home increases about $20,000 for every thousand dollars saved in annual energy costs. Adding a solar electric system to a home raises its value, but not property taxes. That's because North Carolina allows homeowners who install a solar electric system to exempt 80 percent of the system's appraised value when it's time to pay property taxes.

Net Metering
During certain times of day, many solar electric systems generate more electricity than a home needs, causing the electric meter to “spin backwards.” In North Carolina, homeowners with solar electric systems can actually sell that surplus electricity to the local for-profit power company, by opting into the net metering program. Homeowners receive payment in the form of a credit on their utility bill, but it does not roll over at the end of the year.

NC GreenPower
An independent, nonprofit program, NC GreenPower uses voluntary contributions to encourage the development of electricity generated from renewable energy sources. After being accepted as a green power “generator,” NC GreenPower pays 10 cents per kilowatt-hour for electricity
generated by residential solar electric systems. At this time, homes cannot participate in both net metering and the NC GreenPower program. However, many utility companies pay a cost avoidance credit for power generated.

Progress Energy Residential SunSense Program

Residential Progress Energy customers can sign up for the SunSense Program. In exchange for the sale of all generated power and SREC's over a 5 year period, Progress Energy will pay upfront $1,000 per system kW size (AC) and provide a credit of $4.50 per system kW size (AC) each month. The customer must switch their rate schedule to Time of Use Demand, a program on which the customer has the potential of additional monthly savings.

Green Power Switch
The Tennessee Valley Authority (TVA) Green Power Switch Generation
Partners program grants the option to sell all the electricity generated by a solar energy system to the TVA—rather than use it directly—at a rate of 12 cents per kilowatt-hour as a premium payment above the retail rate.

So, if you pay your power company 10 cents per kWh for electricity, the TVA will pay you an additional 12 cent premium (for a total of 22 cents) per kWh for 100 percent of the green energy generated from your solar electric system.

In addition, homeowners receive a $1,000 incentive payment after enrolling in the program. This program is only available in Western North Carolina.

Other Incentives
There are many other local incentives and loan programs available for solar energy systems. Visit the Database for State Incentives for Renewables & Efficiency to search for more ways to save.