Solar Panel Use Heats Up As Installation Costs Fall
The Database of State Incentives for Renewables and Efficiency provides updated information for consumers about tax credits and rebates for solar power systems. The federal residential solar energy tax credit allows homeowners to claim 26 percent of the cost of installing a solar panel system in 2020 and 22 percent for systems installed in 2021. Extended renewable energy tax credits have been included in the $1.4 trillion federal spending package alongside a $900 billion pandemic relief spending bill.
A study last year by the Home Innovation Research Lab on behalf of the National Association of Home Builders found that the cost-effectiveness of solar panels depends on several factors such as the local price of electricity, the price utility companies pay residents for excess electricity generated at their home, the cost to install solar panels, the amount of sun the panels receive and the orientation of the panels. For example, solar panels that face south, southeast or southwest generate more electricity than those facing other directions.