Last Updated: September 16th, 2020 at 3:15 pm
Read Time: 3 Minutes
One of the best things about installing a solar panel system at your home or business is the opportunity to receive a 30 percent federal tax credit on the system. The credit is similar to a 30-percent-off sale at your favorite online retailer or department store (though your savings are applied when filing your taxes), and that is a huge incentive for homeowners and businesses that want to save money on their energy bills and reduce their carbon footprints.
The 30 percent federal solar tax credit has been around since 2006, and it has been a significant driver of the growth of solar energy in the United States. According to the Solar Energy Industries Association, there has been 59 percent compound annual solar growth since the Investment Tax Credit was enacted.
While that is great news, this credit at its current rate is nearing its end, which figures to make 2019 a huge year for solar. That’s because the 30 percent tax credit will expire at the end of the year, and it will be replaced by a 26 percent tax credit in 2020 followed by a 22 percent tax credit in 2021. What does the 30 percent tax credit mean for you? For example, a solar system that would cost $15,000 would cost only $10,500 with the tax credit factored in. If your system comes with a $20,000 price tag, your savings would be $6,000. The savings go up proportionately with systems that cost even more.
Contrast that to 2020, when the 26 percent tax credit means you will be paying $600 more for the same $15,000 system (or $11,100), while you would be paying $800 more for a system priced at $20,000 (or $14,800). The savings get even smaller when the 22 percent credit begins in 2021. So depending on the size of your system, going solar in 2019 will save you hundreds, if not thousands of dollars via the tax credit.
What could you do with extra hundreds of dollars? Your options are limitless. So with this tax credit being at its peak, it makes perfect sense to get a solar system from POWERHOME SOLAR while the calendar still reads 2019.
One other important thing for customers to note is that you don’t have to apply your savings from the federal tax credit to your loan balance if you have better uses for the extra money. Choosing to do that will increase your solar payment slightly, but if you’re wanting to pay off a high-interest credit card bill first, it may make great sense to pay down that balance first. That financial flexibility is another big advantage in going solar.
No matter what you decide, consult with your tax professional to determine your tax credit qualifications, as POWERHOME SOLAR cannot give advice on customers’ personal tax liability or their eligibility for tax refunds.
So yes, the timing to go solar has never been better. POWERHOME now offers panels with a 30-year power production warranty, which is five years longer than the industry standard. We’re ranked the No. 12 residential solar installer in the U.S. by Solar Power World, and our company footprint now spans six states (Michigan, North Carolina, Ohio, Pennsylvania, South Carolina and Virginia).
With our innovative solar program, homeowners can go solar for $0 up-front cost, save money on their electric bills, and generate their own clean energy. Commercial customers also have some attractive financing options available too. Please feel free to fill out the form below or contact POWERHOME SOLAR at 800-765-2715, and one of our solar representatives will help you determine whether your home qualifies for this program.