There are several great reasons to invest in solar panels for your home. It’s the most environmentally friendly way to generate energy, it reduces your monthly energy bills, it allows you to divest from your city’s energy grid, and more. While some people are hesitant about the initial installation cost of a home solar system, did you know that you can apply for the Federal Solar Investment Tax Credit to save money? More importantly, did you know that the senate has just passed a bill that increases the tax credit you receive for your residential solar installation? With that being said, our team at Green House Solar has compiled what you need to know about the recent changes to the Federal Solar incentives program, and why it is now even more beneficial to you.
What is the Solar Tax Credit?
This tax credit gives homeowners back a percentage of the total cost of their home solar system. Until very recently, the tax credit for residential properties was worth 26% of the amount of money invested in an eligible solar property, with the stipulation that construction had to begin before 2023. For example, if you paid $40,000 for your home solar system, you would have been eligible for a tax credit of $10,400. The good news is that the tax credit was just expanded to 30% and will apply to all installations that began in 2022. That means that for the same $40,000 investment in a solar system, your potential Federal Tax Credit is now worth $12,000.
The Solar Tax Credit incentivizes homeowners to invest in home solar systems, and other energy saving products. The cost of installation used to be prohibitive to many people, but financing options like solar leasing and solar loans now exist, making it much easier to afford.
Can I Still Qualify?
You can still qualify for the Federal Solar Investment Tax Credit, but there are provisions included in the new legislation. The existing credit has been extended at 30% through 2032, for anyone who starts their solar installation in 2022. For a better understanding of your unique qualifications, give us a call so we can go over all the details with you.
Contact Green House Solar today to get started with a free consultation
We’ve helped thousands of local homeowners get started on their solar power journey. From solar panels to solar storage batteries we’re here to help you harness the power of the sun by turning it into completely clean and renewable energy for your home. If you’re interested in applying for the Federal Solar Investment Tax Credit, please call us today so we can discuss your options.