Solar Panel Tax Credits You Need To Know About
If you’re thinking about going solar, but you’re just not sure if you can afford it, you’ve come to the right place.
There are a lot of homeowners out there that want to get solar panels for their home, but fear the up-front cost of the panels and installation. When you see $15-20,000, it might look like an insurmountable expense to take on.
In this post, were going to discuss solar panel tax credits. When you’re looking at solar panel prices, there’s a lot more than meets the eye, and once you do some digging, you’ll find a lot of savings. Keep reading and you’ll learn about all of the tax credits, rebates, incentives, and savings that go along with solar panel installation.
Federal Solar Panel Tax Credits
The most prominent tax credit available to solar panel owners is the solar panel federal tax credit, called the ITC. It allows you to claim 26% of the total cost of your solar panels (panels and installation) on your federal taxes.
The average cost of a solar panel system is around $16,000. With the ITC, you’re cutting out a significant amount of the up-front cost. You can learn more about how it works and the impact the program has had on renewable energy here.
The ITC is set to reduce to 22% next year and disappear altogether by 2024, so now’s the time to take advantage and install solar.
State and Municipal Credits, Rebates, Incentives
Depending on where you live, you may be eligible for further credits on your state taxes. These can go up to 25%, which combined with the ITC, can cover half of your solar installation. That $16,000 installation is now less than $8,000 by these numbers.
Some municipal utility companies offer cash rebates for those that decide to install solar panels as well. These range in amount, but can end up playing a significant role in lowering your solar installation costs.
One of the great benefits of going solar with Blue Raven Solar installation is savings you’ll see after they’re installed. Not only do you get to claim tax credits and local incentives, but there are performance-based incentives as well.
Solar renewable energy certificates (SRECs) reward you for every megawatt-hour (MWh) of energy that you produce. Because many utility companies are mandated to obtain a percentage of their energy from renewable resources, they can purchase SRECs from homeowners to meet their quota.
Monthly Utility Bill Savings
When you factor all of these solar panel tax credits in, you’re paying a fraction of the price tag for solar panel installation. All of this is just the beginning, however. It’s when you take a long-term view of your solar panels that you really start to see the savings.
Over a longer period, your solar panel is going to save you thousands of dollars off of your utility bills. If you have enough panels to cover your energy needs, then you can end up breaking even on your panels in a matter of years. The more incentives that you take advantage of, the faster you can break even.
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