Incentives

Take advantage of the Federal Investment Tax Credit

If you purchase a solar photovoltaic system or finance it through a loan, you are eligible to be credited directly against what you owe in taxes. The federal investment tax credit (ITC) for solar was recently addressed in the Inflation Reduction Act at the end of 2022. The ITC is now valued at 30% of a systems full installation cost for the year the system is commissioned. Battery backup storage equipment is also now eligible for consideration under the ITC. The credit is scheduled to remain at 30% for 10 years until 2032, after which it will step down to 26% in 2033 and down to 22% in 2034 before dropping to 0%. Take advantage of these tax credits before it’s too late!

Utility Rates: True Net-Metering vs. Distributed Generation

Net metering (or net energy metering, NEM) allows consumers who generate some or all of their own electricity to use that electricity anytime —instead of when it is generated. Monthly net metering allows consumers to use solar power generated during the day, and pull energy from the utility at night. True net metering provides the consumer a rate for excess electricity exported out to the grid equal to the cost they pay their utility for electricity they purchase from the grid.

Distributed Generation has been the common rate structure local utility companies in Michigan have been adopting in recent years. Under a distributed generation rate, the rate for excess electricity exported to the grid is valued at a lower rate than what a consumer is typically charged when they buy electricity from the utility company. This can very by the utility company, but general rate structures under distributed generation do not credit the consumer for the “delivery charges” listed on their utility bill breakdown. Check with your Strawberry Solar sales representative or your local utility company to confirm the rate structure available for you if you move forward with a solar installation.