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The investment tax credit (ITC), also known as the federal solar tax credit, allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value. The average Solar Power One Solar Customer saves nearly $9,000 on the cost of going solar as a result of the ITC.
The cost of solar is dropping across the nation. See prices in your area and get a free virtual solar quote from Solar Power-One.
The history of the solar investment tax credit
The ITC was originally established by the Energy Policy Act of 2005 and was set to expire at the end of 2007. Thanks to the popularity of the ITC, and its success in supporting the United States’ transition to a renewable energy economy, Congress has extended its expiration date multiple times. Now, the solar investment tax credit is available to homeowners in some form through 2022.
How the solar tax credit works
As long as you own your solar energy system, you are eligible for the solar investment tax credit. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “rollover” the remaining credits into future years for as long as the tax credit is in effect. However, remember that if you sign a lease or PPA with a solar installer, you are not the owner of the system, and thus you cannot receive the tax credit.
How do I claim the investment tax credit?
You claim the investment tax credit for solar when you file your yearly federal tax return. Remember to let your accountant know you’ve gone solar in the past year, or if you file your own taxes, simply use available software to report your solar power system purchase and claim your Federal Tax Credit.
Feel secure that you’re protected from rising energy prices. Once you have installed a solar system on your roof, it will continue to generate free electricity from the sun year after year. This means you can substantially reduce or even eliminate your electricity bills, giving you the peace of mind that you’re doing what you can to keep your bills as low as possible while still enjoying the benefits of all the gadgets that electricity powers.
Government Incentives
The Federal Government’s ITC – Investment Tax Credit provides thousands of dollars towards purchasing and installing your system. In addition, a state-based Feed-In Tariff pays you for any excess electricity you generate and don’t use.
Significant Investment Returns
There aren’t many financial investments better than solar. You’ll be saving on your electricity bill from day one. This could translate into a return on your initial investment of 15 -30% per annum for many years to come, with your solar energy system potentially paying for itself in around 3-6 years, depending on the system size.
Increase the value of your home
Energy-efficient homes have been proven to sell at a significant premium to less efficient ones. Imagine telling a prospective buyer that they could receive a cheque every 2 months instead of a bill. With rising electricity prices, buyers will increasingly focus on energy efficiency and solar when considering which home to purchase.
Do your bit for the environment
Electricity generated via your own solar system means that you’ll draw less electricity from the grid. This means less coal is burnt at power stations reducing the use of the biggest source of carbon pollution. Installing a system is the single most effective step you can take towards reducing your carbon footprint.
100% Turnkey Service Provided
We take care of everything and we are by your side every step of the way — from your initial, virtual estimate and solar consultation, all the way to the ongoing monitoring, cleaning, and maintenance of your solar electric system for the next 25-30 years. We are your local solar partners for the entire lifespan of your installation, and we will always be here when you need us. We also provide additional services including residential and business solar energy storage solutions like GL Solar back up battery, as well as EV vehicle charging station design and installation
If you’re interested in solar for your home or business, we’ve got the right advice for all your solar needs. Contact us today.
