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  Residential Solar Power Rebates & Tax Credits

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Thanks to the State of North Carolina and the Federal Government the initial cost of a solar electric system can be reduced by as much as 65%. The incentives are mainly in the form of tax credits so it is important that you understand how these credits will be applied. Shannon’s Green will assist you in understanding how to apply to apply for the solar tax credits and we will provide the necessary tax forms for your CPA.

North Carolina Renewable Energy Tax Credit

North Carolina offers a tax credit equal to 35% of the cost of eligible renewable energy property constructed, purchased or leased by a taxpayer and placed into service in North Carolina during the taxable year. This tax credit has a ceiling of $10,500 and can be carried over 5 years. To learn more about this incentive click here

Federal Renewable Energy Tax Credit

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the U.S. used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for onsite preparation, assembly, or original system installation and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. To learn more about this credit click here