Side Hustles: Can You Make Money by Installing Solar Panels?

Many people wonder if it is possible to make money by purchasing solar panels. By installing solar panels in the United States, a customer can earn money from each kWh sent back into the grid. The customer may also be able to claim helpful tax credits.

Learn more about solar power, New York State Solar Farm, and more here. By knowing how to make money with solar panels, a person can make the most of the investment they have made.

Understanding Renewable Energy Subsidies

The deployment of renewable energies started in 2010. At that time, green energy sources were extremely expensive, which meant they could not compete with the prices of fossil fuels. This is why a bit of a push was needed to help get things moving and to get people in the private sector to start investing in these renewables.

This is how renewable energy subsidies were first deployed around the world. Renewable energy auctions were used to help promote large-scale power plants. With this, project developers bid on various utility projects to receive the government incentive. When the auctions took place, the company that provided the most affordable price would win.

Solar Incentives in the U.S.

To fully understand the real costs and potential value offered by installing a solar power system at home or in a business, it is important to get to know the incentives that are provided by private sources or the government. More about these can be found below.

The Federal Renewable Energy Tax Credit

This is an important incentive. It was implemented and offered throughout the U.S. This particular incentive is focused on residential homeowners who opt to install any of the following sources of energy: small wind turbines, solar photovoltaic systems, solar water heating systems, fuel cells, and geothermal heat pumps.

With this program, homeowners can receive up to a 30% rebate credit for any qualified costs that are related to the installation, wiring, piping, labor, or equipment needed to connect and install the renewable source of energy. This means the program will help homeowners off set the costs of the system by up to 30%, which will be added to a person’s yearly tax payments. If the 30% is more than a person’s tax liability, the remaining amount is carried over to the next tax year.

Net Metering

With the net metering incentive, those in the U.S. receive an electricity credit for each kWh of extra energy that is sent back into the grid from their solar system. More than 38 states have already adopted a Net Metering Scheme.

Understand that this incentive does not provide cash. If the solar energy created in the course of a year exceeds the amount of electricity gotten from the grid, it means that homeowners may see a zero-energy bill each month. Keep in mind, though, there are some electrical companies that require a minimum payment, regardless of the production for the month.

Is It Time to Invest in Solar Panels?

As anyone can see, solar panels offer an array of potential benefits. Be sure to keep the information here in mind to see how they may help a homeowner not only save money but make money. Being informed and knowing how to use the panels to their full potential is essential for success and to see all the benefits mentioned here.

Leave a Comment