If you’re on the fence about going solar … Now is your perfect opportunity! There is a big event happening in the solar community this year that you won’t want to miss!
California homeowners who have their solar system installed and approved by the city before December 31, 2020 will be eligible for the 26% Federal Solar Tax Credit (also known as the Investment Tax Credit or ITC). After this year, the credit will be reduced from 26% to 22% in 2021, so it’s important to take advantage of this great deal while you can.
So what exactly is this credit and how can you apply? Let’s dive in!
What is the Federal Solar Tax Credit?
The Federal Solar Tax Credit was established by the Energy Policy Act. It was established in 2005 and offers a dollar for dollar income tax reduction on a percent of the entire cost of the entire solar power system. It was originally set to expire after 2007 but the government extended the deadline and the credit is on a step-down schedule, with a decreasing tax rate each year. The tax is currently at 26%, but will drop to 22% in 2021 and then finally to 10% in 2022 and 2023.
Why Should I Take Advantage of the Federal Solar Tax Credit?
This is a very generous incentive that can help those who own solar panels get back a large portion of the cost. In fact, homeowners could be missing out on THOUSANDS of dollars in savings by postponing the transition until next year.
But you’ll need to act sooner than later if you want to take advantage. Your residential solar system will need to be purchased, installed, and approved by the city before the December 31st deadline. This is a process that can take several weeks to complete, so it is not recommended that you wait until the last minute.
Benefits of Going Solar
Going solar can help you cut costs, but more importantly, it can help you live a clean and sustainable lifestyle while reducing reliance on the grid. Imagine not being subjected to planned or unplanned power outages. Imagine protecting your community from wildfires. Solar power makes it a reality.
Solar power is also a great home upgrade that can increase your property value. Make sure your installer provides you with a transferable warranty package in case you sell your home before the warranty expires. Without a transferable warranty, the increase in property value might not be as significant as you would like.
Why Solar Optimum?
Solar Optimum is one of the leading solar companies in Southern California. We have been in business for over 12 years since 2008 and are grateful for the chance to continue our mission.
We put the same level of expertise into our residential installations as we do our commercial installations. Our team has the extensive knowledge and experience to take on any project.
We also go above and beyond to give our customers energy peace of mind. This is why we offer a 6-point 25-year warranty package that covers panels, inverters, workmanship, roofing, racking, and system performance. Our warranties are also transferable, which means if you sell your home before your warranty expires, the warranty will carry over to the new homeowners.
Don’t wait until the last minute to take advantage of the Solar Tax Credit! It may be gone before you know it! Contact Solar Optimum or download our FREE whitepaper to learn more.