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The US Solar Energy Incentives: A Complete Guide to the Financial Benefits of Solar Energy Power Systems

Implementing a solar power system at home can be very expensive.

Of course, a large, reliable solar power system can create a huge dent in your pocket, but thanks to the availability of some impressive US solar energy incentives, you can in the long run save a lot of money with solar power adoption for home power.

Tax credits and rebates are the main incentives, which can help lower the upfront costs of installing solar panels and give homeowners credits for the extra energy they produce.

What’s more, the long-term savings from reduced electricity bills and increased home value make solar energy a worthwhile investment. There are many solar energy benefits in the USA at the federal, state, and local levels.

In this article on the US solar incentives, I would like to have a detailed look at various benefits you can get from various levels of administration when installing solar power systems.

An Introduction to US Solar Incentives

The tax incentives in the US are an incredible way to help people who buy solar power systems lower their tax bills. You can enjoy a dollar-for-dollar reduction in your tax liability with the cost of your solar power system.

As you can see, it is a cool way to encourage homeowners across the US to install solar-based power systems, which will end up reducing the carbon footprint and ending the great reliance on traditional sources of power.

Apart from the federal incentives, several states also offer attractive incentives to homeowners who choose to implement solar power systems.

Federal Solar Incentives

There are different incentive programs for renewable energy systems under the federal government.

Investment Tax Credit (ITC)

The Investment Tax Credit (ITC), enacted in 2006, is the famous tax credit program for solar energy installations in the USA. The key idea behind the ITC is that you get a federal tax credit against the cost of a solar power system you set up in your home.

You can claim that credit while filing your annual income taxes, letting you enjoy a cut in the tax due. Any homeowner can qualify for the ITC for the tax year for a solar power system set up in their home.

There is a fixed percentage for the solar tax credits that you can accumulate.

In 2021, it was 26% for the solar power systems set up between 2020 and 2022. As of now, the tax credit is 30%, which will continue until 2032.

In 2033, it will fall to 26%, and further to 22% in 2034. The tax credit will end in 2035 unless Congress reviews and renews it.

Well, the federal solar tax credit covers all the costs associated with the installation of a solar power system in your home.

They include the cost of solar panels, power storage systems with a minimum capacity of 3000Wh, and all the required accessories like inverters, wiring, and mounting brackets.

What’s more, they also include the labor costs and even the sales taxes paid.

USDA Rural Energy for America Program (REAP)

The REAP is another major initiative to offer support for renewable energy systems.

Small rural businesses and farmers who want to install renewable energy systems can get loans and grants from the REAP program.

For a project to be eligible for the program, it must be in a rural area.

The funds can be used to build both small and large solar power systems, as well as other renewable energy systems like wind generators, hydropower, biomass, tidal power, and so on.

State-Level Solar Incentives

In addition to the ITC and other federal incentives, different states offer their own set of solar energy incentives. The states commonly offer tax credits, rebates, and energy certificates to homeowners who wish to install solar power systems.

The process of applying for the state program mostly works the same way as federal programs do.

Texas, California, New York, and Minnesota are some of the states with more solar incentives for homeowners. So it is fine to talk to a renewable energy expert before investing in a solar power system for your home.

This will indeed help you find the best state and federal incentives to lower the cost of installation.

The US Solar Incentives and Mango Power E

As was already said, most solar incentives in the United States are available for both solar panels and solar storage systems.

So, if you are looking to buy a ready-to-go solar power station with solar panels, you can still get a tax credit. You don’t need to set up a large solar power plant in your home to qualify for federal and state solar energy incentives.

The Mango Power E, a 3.5kWh LFP battery pack with amazing modular features,  is indeed one of the coolest options for you. The base unit of the power station integrates a 3000W power inverter, and you can charge it at a faster rate from solar panels, which is up to 2000 watts.

Being a modular power station, you can pair two units of the same to achieve a higher output of 6000 watts. Further, coupled with the brand’s 3.53kWh extra battery pack, you can take its total storage capacity up to 14kWh, making it an ideal home backup system with solar power.

Mango Power E for Home Backup Power

  • 3.5kWh/3000-Watt Scalable Solar Battery. 
  • Expandable Up to 14kWh/6000W for Home Power.
  • Ultra-Safe and Long-Life LiFePO4 Battery Pack.
  • Faster Charging Up to 80% in an Hour.
  • 240V Split-Phase for Home Appliances. 
  • 2000W (60V-150V) Max. Solar Charging.
  • Four AC Sockets and an AC TT-30P Socket.
  • Six USB-A 27W and Dual USB-C 65W/100W Ports.
  • Smart Mango Power App for Remote Monitoring.
Buy Mango Power E on the Mango Power Website (paid link)

Sum Up

The federal tax credit demands the solar storage system have a minimum capacity of 3000kWh. So the Mango Power E, with a 3.5kWh battery pack under the hood, is, of course, a perfect candidate for your power needs at home.

Since you can max out its capacity with more battery packs, you can be sure to have enough power, which you can harvest from solar panels with its 2000W MPPT charging input.

Hence, it can be a cool investment that can help you reduce both power bills and take advantage of federal and state solar incentives.

The Main Image by Tawatchai07 on Freepik

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