The Solar Tax Credit: What Homeowners Need to Know Right Now
If you have been contemplating going solar, the time is now. As of 2022, the solar tax credit will be long gone, and homeowners will no longer be able to save thousands of dollars on taxes.
What Is the Solar Tax Credit?
This generous tax credit began in 2006 and has been at 30% up until last year. This means if you spent $20,000 on a solar installation during this time, you paid $6,000 less in taxes. An excellent financial incentive for those of us who already know the importance of breaking free from the utility monopoly.
Unfortunately, this incentive's days are numbered. As of this year, if you're installing a residential solar system, the tax credit will now be 26%, then 22% in 2021, then ZERO in 2022.
How Do I Know If I Am/Will Be Eligible?
According to the US Department of Energy website, the main criteria for the Federal Tax Credit for Photovoltaics are:
Your system must have been installed between January 2006 and December 2021.
The system must be installed at your home or a residence you own or rent.
You must own or be financing the solar photovoltaic system. Leasing arrangements are ineligible.
The system must be a new, original installation.
What Expenses Are Included?
The solar incentive includes the cost of the photovoltaic cells, labor, equipment, energy storage devices, and sales tax.
While you may only have less than two years to take advantage of this federal tax program, don't fret. The incentives for going solar are long term: from state tax incentives and rebates to running a sweet, sweet surplus on your energy bill every month.
Most importantly, a solar-powered lifestyle weens you off the utility matrix, helping you live a more sustainable, responsible, independent life.
Contact me for personalized guidance through this process. I can make sure you have all the information you need to make the wisest decisions.