Solar panel installations have skyrocketed over the past decade. Buyers not only decreased their carbon footprint by installing residential solar panels, but saved thousands with the Investment Tax Credit (ITC) incentive, also known as the Federal Solar Investment Tax Credit. But the ITC credit will be phased out soon for residential buyers.
What are the Solar Tax Credits?
Washington legislated the ITC in 2005 and enacted it in 2006. According to the Solar Energy Industry Association (SEIA), solar energy growth has skyrocketed 10,000 percent–that’s a 52 percent annual solar growth since 2006. It was extended in 2015 to a 30 percent credit, but in accordance with an eventual residential phasing out program.
Homeowners won’t be able to deduct as much of the Federal Solar Investment Tax Credit since it’ll be decreasing from 26 to 22 percent in 2021. The credit zeroes out for residential investors in 2022.
Solar Tax Credits Can Still Save You Thousands
Consider investing in solar energy while you can take advantage of the ITC. Keep in mind there are quite a few steps that must be completed before your solar energy investment’s commissioned. First, you have to get on board. With so many people jumping on the last minute bandwagon, you need to act now to take the credit and save thousands.
How much can you save? There’s no cap on the current 26 percent credit. EnergySage Solar Marketplace estimates you can save $9,000 with your tax credit in 2020. That goes down four percent in 2021, so roughly a credit of $8,640 depending on how costs shake out after the POTUS election. Residential solar energy tax credits bite the dust in 2022 unless Washington extends homeowner eligibility a bit longer.
But until then, any California homeowner can capitalize on the ITC with one caveat. Get your solar panels fully commissioned sooner than later. Installation schedules may tighten up considerably as the end of the ITC draws near. Remember that you must own your new solar energy system outright in order to claim the ITC. Note that the commercial “safe harbor” provision does not apply to homeowners.
Here’s Why You Need to Get the Ball Rolling
Your chosen installer will work with you to do a residential evaluation to enable your home’s unique solar panel design. Next comes an inspection and obtaining the right permits. Once you’re primed and ready to go for financing and installation, then your solar panels can be commissioned with your local energy entity. So you can see why you need to get started sooner than later.
Save Now Before The ITC Is Gone
Increase the value of your home and get the greatest return on your investment by taking advantage of solar tax credits before they’re gone. Solar Optimum offers a free consultation, flexible financing and a 25-year warranty that covers solar panels, inverter, racking, craftsmanship, performance guarantee and roof. Give us a call. We’re ready to serve your home energy needs today.
