What You’ll Learn:
- What the Federal ITC is and how to claim it
- Why state incentives like NJ’s and PA’s are shrinking
- What “SRECs” are and how they work
- The future of government solar support — and why it’s uncertain
- Why most solar companies are backlogged
Why ShopSolar.ai is ready now while others are scrambling
One of the best things about going solar — besides breaking up with your electric company — is the stack of financial perks that come with it. Between federal solar incentives, state-level rebates, and SRECs, there’s real money on the table.
But here’s the kicker: these programs are already shrinking, and the future isn’t exactly looking sunny.
If you’re thinking about getting a solar system for home, this is the window to act.
What Is It?
The Federal Investment Tax Credit (ITC) allows you to deduct 30% of your total solar installation costs from your federal taxes.
It covers:
- Solar panels
- Inverters
- Batteries
- Racking systems
- Labor, permitting, and other installation costs
Whether you pay cash or go with a loan — if you own your system, you qualify.
How Do You Claim It?
It’s filed through IRS Form 5695 and applied when you file your income tax return. You must have sufficient tax liability to benefit — no refunds, just big deductions.
What’s the Catch?
Under the Inflation Reduction Act, the 30% credit is locked in through 2032 — but that doesn’t mean it’s safe.
With budget tightening in Congress and shifting political priorities, many experts believe this credit could be reduced, phased out early, or restricted. It’s already been on the chopping block before.
Bottom line? This is one of those “get it while you can” situations.
New Jersey: One of the Most Solar-Friendly States
- SREC-II Program: You earn Solar Renewable Energy Certificates (SRECs) for every megawatt-hour your system generates. They can be sold for $85–$95 each.
- Property Tax Exemption: The value added to your home from solar isn’t taxed.
- Sales Tax Exemption: No tax on your solar equipment purchase.
Pennsylvania: Still Solid, But More Modest
- SREC Program under the Alternative Energy Portfolio Standards (AEPS): Prices have declined in recent years.
- No statewide sales or property tax exemptions
- Limited utility rebates on a case-by-case basis
The Trend: 📉 Decline Is the Default
Since their inception, state incentives have been designed to taper off. And that’s exactly what’s been happening.
Why?
- Solar is more affordable than ever
- States are hitting their renewable energy targets
- Funding and political will are shifting elsewhere
If you’re holding out for bigger state checks, you may be waiting forever.
The Solar Gold Rush Is Real
With the ITC still in place and interest in home solar exploding, many solar companies are booked out for months. Long permitting queues, limited labor, and sluggish supply chains have created the perfect storm.
But ShopSolar.ai Was Built for This
We’re not a bloated local installer with a 10-week waitlist.
Instead, we run a direct-to-consumer model that lets you:
- Buy solar online
- Design your system with our AI-powered tool
- Skip the middlemen and save thousands
- Get your project moving — today
Our systems are in stock. Our team is lean and fast. And our process is designed to scale.
In other words? While other companies panic, we’re prepped.
Federal and state solar incentives are still strong — but nothing about them is guaranteed. Congress could cut the ITC. States are trimming back their programs. And demand is already surging past what many companies can handle.
With ShopSolar.ai, you get:
- Fast installs
- Transparent pricing
- Pro-level design
- And every dollar of incentive you qualify for
So why wait?
🔗 Get an Incentive-Ready Solar Quote Now
🔗 Explore System Options and Pricing
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