– 30% Federal Tax Credit
– Renewable Energy Credits (RECs)
Your True Net System Cost
Gross cost for your PV Solar System: The total cost of your turnkey system, including all labor and materials.
30% Federal Tax Credit: The Inflation Reduction Act of 2022 increased the Federal Tax Credit for solar to 30% and extended it until the end of 2032. Owners of new residential and commercial solar energy systems will be able to claim 30% of the gross cost of the system on their Federal Tax Return.
Renewable Energy Credits (RECs): These are monetary credits paid to you quarterly for producing renewable energy. You will receive 1 credit for every megawatt-hour (1MWh = 1,000 kilowatt hours) your system generates. Utility companies are required to purchase a certain number of kWh of electricity that is produced by solar energy. The value of RECs fluctuates, and is set by supply and demand, as well as other market factors.