The solar energy tax credit allows a homeowner to reduce the amount of income tax that they would otherwise have to pay the federal government. This credit is good for 30 percent of homeowner’s investment in their solar system, including solar panels, a charge converter, battery, and inverter, but only for the next three years. The credit will drop to 26 percent in 2020, and 22 percent in 2021. After 2021, the solar energy tax credit for residential customers will be eliminated entirely. While there is a chance the credit could be extended, many homeowners considering solar are planning to install their systems within the next few years to take advantage of the credit.
For commercial businesses looking to go more green, they can qualify for up to 70% off with solar tax incentives. Not only will you qualify for a 30% Federal Tax Credit but you can accelerate the depreciation of your solar system over 5 short years. These tax incentives are equivalent to 60%-70% of the system cost, leaving you needing only 3-4 years of energy savings to recover your entire investment.
In addition to the financial benefits of the solar energy tax credit, many people choose to …Read More