Residential solar panels have exploded in popularity. Homeowners all over California have been investing in solar panel systems due to the generous solar tax credits and warranties used by the best solar panel companies that make this type of energy affordable for most people. But are all solar tax credits and warranties the same? When working with a solar panel company, look for one who can walk you through the arena of warranties and tax credits to help you get the best price on solar panels in California.
The Investment Tax Credit
Also known as the federal solar tax credit, the investment tax credit (ITC) allows homeowners to deduct 30 percent from the total cost of solar panels and the installation process. If you also own a business there’s great news because the ITC applies to commercial solar panels too, and the best part is there is no cap on its value.
Want more information on the investment tax credit for solar panel systems? The ITC was first established by the Energy Policy Act of 2005 with the intention to cease its purpose in 2007. However, it was so popular that it helped to support America’s transition into becoming a heavy hitter in the international renewable energy economy. Due to this fact, Congress extended the end date on numerous occasions, and as it stands today, the solar investment tax credit is set to expire through to 2021.
When Talking Tax Credits, Now is the Time to Buy Solar Panels
There has never been a better time to buy solar panels because the tax credit is not going to get more generous than it is now. Although the investment tax credit has been extended to 2021, by the time we reach that year homeowners will only be able to deduct 22 percent from the cost of solar panels. While this is still a generous savings, it simply can’t compete with the 30 percent savings that residential solar panel customers can enjoy today.
How to Find the Best Solar Panel Warranties
Various solar panel companies have different types of warranties. But in order to truly find the best solar panel company that offers iron-clad warranties few others can touch, you need to identify one that covers ALL of the following:
Warranty on the solar panels
Workmanship
Inverter
Roofing
Racking
Performance Guarantee
One of the biggest mistakes homeowners make is partnering with a solar panel company that offers no warranty on the roof. Some buyers who invested in residential solar panels reported that as soon as the first California rain came months after their solar panel installation was completed, water leaked through the ceiling. Not only were these buyers left having to pay for roof repair (in some cases people had to replace entire roofs) but the water damage to the home racked up thousands of dollars making the real cost of solar panels not worth it at all. This is why it is crucial to find a solar panel company that offers a full warranty that extends to the roof and workmanship.
