Visitor Federal, state and local solar tax credits and rebates Federal, state and local governments offer incredible solar energy tax credits and rebates to encourage homeowners to switch to renewable energy to lower their energy usage and switch to solar power. The amount of the solar rebate subsidy varies by program, but some are generous enough to cover up to 30% of your solar power system cost. The federal government allows you to deduct 30% of your solar power system costs off your federal taxes through an investment tax credit (ITC). If you do not expect to owe taxes this year, you can roll over your federal solar tax credit to the following year. These incentives dramatically lower the cost of a solar panel system or energy efficiency project. These solar tax credits and rebates often make solar power less expensive than power from the utility company. However, these programs are designed to reward early adopters of solar power and energy efficiency, so the energy rebate amount per home continues to drop as the allotted funds are consumed. Call SolarCity to secure your rebate at the current level before it drops again. Some locations have additional incentives to make solar even more affordable. Davida Shensky

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