One of the many perks of a solar system purchase is the access to a federal tax credit, implemented through legislation in 2006. The solar ITC (investment tax credit) allows a 26% deduction off the cost of the system and saves the average homeowner up to $9,000 or more, in addition to other incentives that apply per state.
Prior to 2020, the deduction was 30% and a driving factor in increased solar adoption across the US. As legislation has not yet been revised or renewed, the percentage will continue to decrease in the following pattern:
v 2020: 26% of the system cost
v 2021: 22% of the system cost
v 2022: 10% for commercial systems only
It’s important that homeowners are aware of the urgency to switch to solar in order to receive its maximum financial benefits. While you have unfortunately missed the 30% tax credit window, you still have a few months to receive 26% in deductions – so if you have been seriously considering solar, don’t stall any longer. Zenergy Solar is ready to help you take control over your energy costs and become your own utility.
2021 will mark the last year you can receive a tax credit against a purchase, offering a rate of 22%. This means that by 2022, if the ITC is not extended, you will receive a much lower return on your solar panel investment.
If you’re interested in finding out how much you can save with solar right now, fill out a quick contact form here so that one of our representatives can follow up with you to discuss all of your options.
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Sources:
https://www.seia.org/research-resources/residential-itc-phasedown
https://www.energysage.com/solar/cost-benefit/solar-investment-tax-credit/
https://us.sunpower.com/solar-resources/what-federal-solar-investment-tax-credit-itc
