Solar Incentives and Tax Credits in 2023
Currently, the federal Investment Tax Credit (ITC) allows taxpayers to take advantage of tax credits equal to 30% of the cost of a solar system. This credit is a dollar-for-dollar reduction from the income tax you owe that year.
The Payback Period
The amount of money you save on energy costs depends on the amount of electricity you consume and the rate you pay for electricity. The payback period is the time it takes to recoup your investment. A faster payback period means a higher ROI, so working with the DC Solar Electric team is essential to ensure your system is appropriately sized for your needs to maximize your energy savings.
The current estimated payback period for a system is 5-7 years. However, recent changes from the California Public Utilities Commission drastically affect savings for new solar customers. Once the latest Net Energy Metering Initiative (NEM 3.0) goes into effect, the payback period could be as long as 9-12 years.
Net Energy Metering (NEM) Locking In Your Savings
Net Energy Metering ( NEM ) is the agreement between solar customers and utility companies. With NEM 2.0, you can lock in the best rate for the next 20 years and maximize your savings on energy costs.