Coal is one non-renewable energy source that people have long used. But due to industrialization and the increasing population, these sources of energy are decreasing at a fast rate. Additionally, non-renewable energy sources may have a negative impact on the environment. Due to these reasons, there was a need to develop a more sustainable and renewable energy source. Enter solar energy.
States such as Colorado have made an effort to harness this non-depleting energy source, which is no surprise as it’s one of the sunniest states in the US. As technology advances, it has become easier for most Colorado residents to install this cleaner energy to power their home and business operations. However, as a newbie, it might be challenging to go to Solar Colorado. The good news is that the following article outlines the three things you need to know before going solar in Colorado. Keep reading.
1. Solar Incentives
Going solar is not a cheap investment and may leave a huge dent in your hard-earned bucks. However, the total cost of installing a solar system will depend on your energy needs. Due to the high cost of installing solar systems, the government is offering incentives to encourage Colorado residents to go solar. Some of the incentives include:
Federal Solar Tax Credit
In this incentive, a homeowner can claim back a percentage of the capital cost of a solar system. In other words, it affords your dollar-dollar reduction on your owned income taxes. At the moment, the federal is offering a 26% tax credit, but you’ll be eligible for this if you buy and install your solar system on or before 31st December 2022. If you purchase your solar system after the set date you won’t enjoy the tax credit unless the government extends the same.
How To Qualify For Federal Solar Tax Credit
- One of the qualifications is that you should be paying taxes to the federal government yourself. That makes sense, right?
- Another qualification you should meet is that you must own solar systems. The panels themselves should be new or at the very least, you’re the first one to use them. There are several ways you can own solar systems in Colorado. They include cash, loans, and more. On the other hand, leasing a solar system may bar you from this incentive.
Sales and Use Tax Exemption
This is another incentive to encourage Colorado residents to go solar. When purchasing goods or services, there is a certain tax you’re expected to pay. However, with this exemption, you’re not expected to pay taxes when you purchase and use solar systems. This incentive plays a huge role in reducing your upfront costs of installing and using a solar system.
2. Factors To Consider in A Colorado Solar Company
Getting a reputable solar company in Colorado can be daunting, especially for a newbie. However, you might employ the following tips to simplify the process.
A reputable company will ensure you get quality products and services at a pocket-friendly cost. It’ll also utilize advanced solutions such as artificial intelligence (AI) to ensure they follow all the set rules and regulations, saving you from non-compliance fines and convictions, which could disrupt your production line. Take your time to go through the provided reviews to gauge whether the company is capable of meeting your needs and expectations.
As mentioned above, a solar system is not a cheap investment. For this reason, it’s important to ensure it’s covered in case anything happens. Go through their warranty coverage to understand what is covered, their policies, and more. This guarantees you have peace of mind even if anything happens to your solar system. Some of the common warranties include equipment, performance coverage, and more.
3. The Benefits Of Going Solar In Colorado
The following are the benefits you might enjoy after installing solar systems in Colorado. They include:
1. Save Money
As mentioned above, Colorado is one of the sunniest states in the US. Thus, you’ll have access to a free energy source. Although it might have a higher upfront cost, it’ll reduce your dependence on utility providers, saving you money in the long run. Also, the federal tax credit may help save you some bucks.
Over the last few years, people have acknowledged the need to protect the environment. Solar energy produces little to no pollutants. Thus, installing a solar system will play a huge role in reducing carbon emissions, and reducing the chances of contracting diseases caused by pollutants.
As discussed above, solar energy has become one of the sources of clean energy. Residents of Colorado have harnessed this energy source to power their home and business operations. However, you should conduct extensive research to understand what you need to know before going solar in Colorado or your locality.