Government Grants for Solar Panels for Your Home – The federal government gives a tax credit of up to 30 percent of the costs toward installing solar electric systems. So if a citizen is liable to pay $1000 in taxes and has earned a $300 credit, he needs to pay only $700. However, he has to meet few criteria – minimum 0.5 kW fuel cells, panels must have efficiency of at least 30 percent, and 50 percent or more of the home’s heating must be via solar energy. As part of the federal grants program, the Department of Energy’s Tribal Energy Program is also a boon for tribal homes. It educates homeowners on tribal land about using renewable energy to reach energy sufficiency.
The homeowner must install a new solar power-generating system before applying for the federal credit. There is no grant for installation of used panels. However, not only house owners, condo and co-op owners are eligible for this credit too. However, those living in rented accommodation are excluded from the exemption. First submit IRS Form 5695 (instructions included), a worksheet which is used to calculate the tax credit one is applicable for. Submit your income tax sheet with the form. Then, the calculated credit amount is mentioned in line 52 of IRS form 1040. The entire process in to be done online and remember to save all your bills and invoices. The government claims to review and pay the grant within 60 days via wire transfers.