Are There Government Incentives for Off-Grid Systems?

Are There Government Incentives for Off-Grid Systems?

Yes, the government does provide some incentives for alternative energy investments. But if your setup is just a generator? Sorry, no incentives for that. 

The federal government, and sometimes even state governments, depending on where you live, do offer incentives. These can help you get energy-efficient appliances and power generation equipment.  

Off-Grid Power Systems is currently (no pun intended) only dealing with solar powered systems and hasn’t ventured into wind or hydroelectric power. 

If you’re a homeowner thinking of adding solar, whether you’re tied to the grid or off it, you will need to incorporate some sort of alternative energy generation for these incentives. For us, that translates to solar and custom inverters. If you’re off-grid, it’s all about storing that solar energy in batteries. For those on the grid, the surplus energy can sometimes be sold back to the grid provider. 

Most of our customers at Off-Grid Power Systems are looking for unique solutions where there may be no grid connection at all. For these folks, there’s good news! They could qualify for a 30% federal income tax credit. Let’s keep it simple: spend $30,000 on a system, and you might get $10,000 back at tax time. So, your net cost for that investment is $20,000. 

Just remember, Off-Grid Power Systems are not tax advisors – so always check with a tax pro before making any decisions.  However, many of our customers have been successful in obtaining this tax credit and filing the claim is typically a fairly simple process. 

For businesses, there’s a similar 30% federal investment tax credit. Take our mobile medical clinics project. We fitted them with solar on the roof, and while there’s a generator onboard their vehicle, it’s considered backup. Solar and batteries are the are their primary power. So, these clinics could get credit for the cost of the solar equipment and setup which would equate to maybe 30% of that cost of the solar panels, the inverters, the batteries, all the design and engineering fees and the installation fees.  Which helps tremendously with the cost of an expensive vehicle. Solar Renewable Energy Credits (SREC) can possibly be sold to utilities and others to meet their requirements under Ohio’s move to renewable energy. 

Now, for the RV enthusiasts out there. I know it seems like a gray area, but many RVs are seen as a second home. If your RV has the basics – somewhere to sleep, cook, and, well, do your business – it can be viewed as a living space. A good chunk of our RV-loving customers may be able get 30% back if they incorporate solar into their rigs. 

Find out more about this program on IRS.gov: Residential Clean Energy Credit

Lastly, for those living the farm life or in more rural settings, there may be other incentives such as a “business investment tax credit”, grants, or other programs available to boost the use of alternative energy beyond city limits.  And they would need to speak with their tax advisor about that. 

I hope that provides some clarity. And hey, if you’re thinking about going off-grid, give Off-Grid Power Systems a shout.