Your Guide to Federal Solar Power Incentives
Your Guide to Federal Solar Power IncentivesSunrise SolarMon, 10/18/2021 – 8:00am
There has never been a better time to switch to solar power — and not just because it helps the environment! In an effort to promote clean energy, the federal government has been providing generous tax credits to offset the cost of solar panel installations. Here’s what you should know about this program.
What Does the Tax Credit Cover?
Tax credits are available to both residential and commercial taxpayers who install a solar system on their property. The credit essentially serves as a rebate for your solar panels, and covers just about everything involved in the installation of a solar panel array, including site preparation, assembly of materials, and connecting wiring to the property. The tax credit can even roll over into the subsequent tax year if your current-year liability is less than the amount you’d receive for the credit.
How Much of a Rebate is Available?
The tax rebate is set to decrease in coming years, with amounts varying between residential and commercial customers. Residential taxpayers can claim a 26 percent “rebate” for solar systems installed before January 1, 2023. Beginning in 2023, the tax credit amount drops to 22 percent. Currently, the residential benefit is planned to be phased out in 2024. Businesses receive a 26 percent tax credit for installations begun by December 31, 2023, and a 22 percent credit for installations begun prior to December 31, 2025. After this, the commercial tax credit drops to 10 percent.
With solar tax credits scheduled to decrease in coming years, the sooner you act, the better! By installing your solar panels sooner rather than later, you can enjoy a more generous tax credit, and start saving on energy costs right away. Contact Sunrise Solar today to get started.