Top 4 Federal Solar Energy Grants for Homeowners
With a planet that is chocking in toxicity, it makes a lot of sense that governments and friends of the environment are asking home owners to use more renewable energy in their homes. While many people are very interested especially because of the benefits that such a move brings like cutting costs, the initial cost of installing solar power in your home can be crippling.
To improve the uptake of solar energy in homes, the Federal government offers different incentives and solar energy grants that could help you finally get your dream solar power station running.
- Green Retrofit Grants
These are grants that are availed for solar energy for homeowners who are embracing home improvement using alternative energy which includes solar panels by the U.S. Department of Housing and Urban Development. This type of grant is commonly distributed in low-income areas, elderly housing and disabled housing among others. The grants are offered in pools of $250 million which are later disbursed to candidates who qualify for the grants. One requirement for this grant is you have to make sure that the grant has been used for the right purpose within two years after it has been received. There are other home improvements that are also eligible for this grant like water efficiency.
- Grants for High energy costs
If you live in a rural area and the energy costs in your locality are higher than average, the U.S. Department of Agriculture has high energy grants that are valued up to $20,000 that could help you put up that much needed solar panel. Homeowners can use these grants to create or repair their energy creation systems. However, these grants are for homeowners that are entirely off the grid or those that are tied to the grid and have to meet the high demands of rural energy especially because of the heavy farming machinery.
- State Utility Rebates
It is important to note that these are not grants that are given directly to the consumer. Nonetheless, these rebates help homeowners to convert existing home systems to solar water heater systems and solar panels. Even though the grant might not be awarded directly to the homeowner they do assist in helping to offset costs that are incurred while adopting and implementing renewable energy resources. In some states, the home owner can get as much as $2,000 in solar rebates under this program.
- Solar Tax Credit
These are not really a grant per se. they are offered by the Internal Revenue Service to help offset the solar installation costs for the homeowner. The solar tax credit is for 30% of the installation cost of installing the solar system which is applied to your tax liability. In simple terms, it means that if you spent $10,000 to install your solar system, you will be eligible for $3,000 in tax credits.
When considering a grant for solar energy for homeowners, it is important that you read the fine print to be able to identify which one is best suited for you. There are some that help you fund for the process and others require you to have invested in installing the systems already and only refund you the cost.