Solar Photovoltaics

Residential Renewable Energy Tax Credit

Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376.

A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures

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Energy-Efficient Mortgages

Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.

FHA Energy Efficient Mortgages
The FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan

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Renewable Electricity Production Tax Credit (PTC)

Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax

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Solar Access Law

H.B. 5028, enacted in June 2024, declares that any provision within a homeowners' associations agreement that prohibits or has the effect of prohibiting the installation of a solar energy system is invalid and unenforceable as contrary to public policy. The law provides similar protections for the installation of:

  • Clotheslines
  • Air source heat pumps
  • Ground source heat pumps
  • Insulation
  • Rain barrels
  • Reflective roofing
  • Energy efficient appliances
  • Solar water heaters
  • Electric vehicle supply equipment
  • Energy-efficient windows
  • Energy-efficient insulation materials

The bill also directs each homeowners’ association in this state to adopt a written solar energy policy statement. The statement may not

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Solar Access Law

S.B. 4, enacted in 2022, added a new provision to the Connecticut statutes governing the rules of homeowners associations. The law establishes that associations "may not adopt or enforce any rules that would have the effect of prohibiting any unit owner from installing a solar power generating system on the roof of such owner's unit, provided such roof is not shared with any other unit owner." However, associations may adopt rules governing the size and manner of affixing, installing or removing a solar power generating system; the unit owner's responsibilities for periodic upkeep and maintenance of such solar power

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Solar Energy Facility Exemption

The Solar Energy Facilities Taxation Act (known as the Solar Energy Exemption), 2023 PA 108, provides a tax incentive to owners of utility-scale solar energy generation facilities who build a new solar energy facility and provides local governments a guaranteed and stable revenue stream from the solar energy generation facilities. A Solar Energy Facility Exemption Certificate (SEFEC) entitles a qualified facility to an exemption from ad valorem real property taxes for term of 20 years. Exempt solar facilities are subject to a specific tax called the solar energy facilities tax. Applications are filed, reviewed, and approved by the local governmental

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Solar Access Law

DC law prohibits homeowners association, condominium owners association, or cooperative housing association from unreasonably prohibiting a member from installing a solar system on their roof. They may, however, establish reasonable guidelines, other than aesthetic guidelines, on the installation and use of a solar energy collection device for the purposes of preventing nuisance to other owners or members of the association.

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Ameren Illinois Distributed Generation Rebate Program

Ameren Illinois offers rebates for installation of DG systems. 

For DS-1 & DS-2 the rebate for inverters used to interconnect generators are $300/KW-DC, and the rebate available for inverters used to connect ESS is $300/KW-hour, and they're available to both customers with existing generation and/or ESS at their home/business and to customers who will be installing that equipment in the future.

For DS-3, DS-4 & DS-6 the rebate for inverters used to interconnect generators are $250/KW-DC, and the rebate available for inverters used to connect ESS is $250/KW-hour, and they're available to both customers with existing generation and/or ESS at

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Local Option - Commercial Property Assessed Capital Expenditure (C-PACE)

S.B. 802 of 2024 authorized the establishment of a statewide Commercial Property Assessed Capital Expenditure (C-PACE) program that local governments may voluntarily join. Eligible properties include commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more dwelling units. The bill establishes the Economic Development Partnership of North Carolina as the statewide administrator for the program and assigns a variety of tasks to it: 

  • Prepare a C-PACE toolkit, as described in S.B. 802, in consultation with stakeholders and local governments
  • Impose fees to offset the actual and reasonable costs of administering the C-PACE Program, including an application fee not
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Montana Commercial PACE Financing Program

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. In 2021, S.B. 147 authorized the creation of a Commercial PACE (C-PACE) program to be administered by the Montana Facility Finance Authority (MFFA). To be eligible, properties must be located in a Montana city, county, town, or a consolidated city-town that has or will establish a C-PACE District. C-PACE District designation is tracked by the MFFA and may be viewed here.

The C-PACE program

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