The Residential Solar Opportunity Act was introduced in 2021 to extend the Federal Solar Tax Credit benefits. The new legislation aims to ensure that homeowners interested in reducing their carbon footprint have the same tax incentives as corporations for installing solar energy systems.
Federal Solar Tax Credit
The Federal Solar Tax Credit (also known as ITC) was introduced in 2006 to increase the adoption of solar technologies and promote job growth within the solar energy industry. The original tax credit was set at 30% for systems installed before 2019 and planned to decrease year after year gradually. However, in 2020, Congress passed a 2-year delay on the phasedown, extending the 26% tax credit to 2022.
Currently held at 26%, the ITC will step down to 22% in 2023 and then down to 10% in 2024.
The Residential Solar Opportunity Act
The 25D Parity Coalition introduced the Residential Solar Opportunity Act, a coalition of solar companies, cooperatives, and nonprofits, including SunPower Corporation, Hanwha Q-Cells America, Solar United Neighbors Action, and many more.
The new legislation aims not only to extend but also increase the incentives provided by the ITC. Under current rules, the ITC credit would step down to 22% in 2023. However, the proposed changes would see the residential credit increase from 26% to 30% for the next five years and gradually step down to a 10% credit after 2028.
The cost of going solar has long been a barrier to entry for many homeowners who wish to adopt renewable energy and reduce their reliance on grid power. The Federal ITC and the Residential Solar Opportunity Act make solar more affordable for homeowners while promoting job growth in the solar industry.
Going Green With Solar Optimum
The Solar Opportunity Act is a bill designed to promote the use of clean, renewable energy. And the adoption of responsible practices in the residential and commercial sectors. The goal is to increase the use of solar power by creating fair competition for developers and end-users. By ensuring that solar comes at the right price while reducing carbon emissions from fuel sources such as natural gas.
Solar power is a brilliant investment in your home, and it helps you save money on your electricity bills every month. It’s also an investment that protects you against rising electricity costs. The residential Solar Opportunity Act allows homeowners to recoup all of their expenses, along with tax credits. Think of it as a long-term financial solution and one that is also good for the environment.
To learn more about solar panel financing and available tax incentives, contact Solar Optimum today. We believe in building authentic relationships around honest talk. We’ll address every aspect of your situation to determine if solar energy is the right choice for you before installing a single solar panel. Our Energy Coordinators are standing by, so contact us today!
