How does the Government Support Household Solar Energy?

Many houseowners are considering installing solar power systems for their homes. When searching them online, you will find that there are many preferential policies for solar power panels. Is it really such a good thing that you can save your electricity bill and get tax relief at the same time by using them? 

Do you want to know why the government is willing to provide preferential policies for solar energy? In this article, we will discuss why the government is so supportive of house solar systems and what current policy incentives are available.

1. Expand Solar Energy Market

The number of global household solar systems is growing at an unprecedented rate, providing enough electricity to hundreds of millions of households. As a result, the global household solar industry has huge potential over the next three years.

In order to encourage more homeowners to use solar power energy, the government and solar companies put forward various preferential policies for users. So when you're going to buy a solar system, you'll find that the cost goes down by more than 30%.

2. Major Solar Policy Incentives

(1) Tax Credit

Tax credit is a preferential policy that almost every country will give household solar system users. If you are a solar energy user in Europe or the United States, the tax credit can provide a one-to-one reduction in federal income tax. The result is that the final cost of installing a solar system in your home is no more than 50% of the normal price. However, with the increasing number of solar energy systems installed, this measure will gradually stop in two years.

(2) Energy Subtraction

Energy subtraction is a new billing method that measures how much energy your home consumes on the public grid and how much extra energy your solar power panels put into the grid. This means that if you use less electricity than the solar system generates, your remaining power will be sent back to the public grid and you won't pay for any electricity. Moreover, the grid will help you save that energy for the next use.

(3) Renewable Energy Credits 

Renewable energy credit refers to the fact that household solar energy owners sell the remaining electricity to public utility to meet the company's electricity demand. You will get an energy credit for every 1000 kilowatt hours of electricity generated by solar panels. You can sell it to a utility company to earn additional income. But the price may fluctuate as these credits are sold on the open market.

(4)Solar System Cash Rebate 

In order to increase the number of solar system installation, some local governments will provide cash rebates to homeowners who choose to purchase solar photovoltaic systems. Cash rebates can help you reduce the cost of your solar system. But such preferential policies are usually time limited and will end once a certain number of solar systems are installed in this area. 

It can be seen that the government has provided a lot of policy support for increasing the installation of household solar system, so it is the best time to install solar power panels now. If you have this intention, please consult Luxen Solar Company. We are specialized in producing all kinds of solar photovoltaic modules.