What are two common incentives for solar energy systems?

The Federal Investment Tax Credit (ITC) and state/local rebates are significant incentives for solar energy systems because they directly reduce the financial burden on homeowners and businesses when investing in solar technology. The ITC allows users to deduct a substantial percentage of the cost of solar installations from their federal taxes, thus providing a considerable upfront savings rate. This incentive has played a crucial role in promoting solar energy adoption across the country.

State and local rebates further enhance the attractiveness of solar investments by offering additional financial support at the regional level. These rebates can vary from state to state, but they typically provide immediate cash back to the customer upon installation, helping to further offset the initial costs associated with solar energy systems.

In contrast, sales tax exemptions and feed-in tariffs can also be beneficial but may not be as ubiquitous or impactful as the ITC and rebates. Utility discounts and performance-based incentives tend to vary widely based on the utilities and regions involved, which can create inconsistency in their application. Property tax abatements and renewable energy credits relate to different aspects of solar financing and may not be as direct in aiding the initial purchase of a solar energy system.