How the Solar Tax Credit Can Help You and Your Wallet

betterearth author
Better Earth

If you are thinking about going solar, you might be wondering what all the fuss is about. Solar is good for the environment, but how does it help your wallet?

Solar power is a great investment. It’s an energy source that will never run out, it reduces pollution, and its costs are continually going down. The sooner you start investing in solar power, the sooner you will start seeing those savings add up.

You may be aware of the Solar Tax Credit, but you might not be entirely sure what it is. In a previous article, we discussed what the tax credit is all about. In this article, we will walk you through the details of how the Solar Tax Credit works and how it can benefit you. We’ll explain what it is, why it matters, and how you can get started today.

When you install solar panels on your home, you may be eligible for the federal tax credit. This tax credit is like getting a little piece of the sunshine for yourself! The Solar Tax Credit reduces your income taxes, so you pay less in your overall taxes.

The federal Solar Tax Credit is a straightforward and easy way to save money on your energy bills, and is available for both residential and commercial installations and can significantly reduce the cost of installing solar panels on your property.

Here’s How The Solar Tax Credit Works:

A portion of the cost of a solar photovoltaic (PV) system can be claimed as a Federal Solar Tax Credit during the tax year in which it is purchased.

How to Qualify:

According to Forbes Home, to qualify for the Solar Investment Tax Credit (ITC), your solar system must be new and in use for the first time between January 1, 2006 and December 31, 2023. If Congress does not renew this tax credit after it expires in 2024, it will no longer be available for use.

The installation of the system must be for an off-site community solar project, or at your primary or secondary U.S. residence, and the system must be entirely yours, located in the US.

If you meet these requirements, then you are eligible for the solar tax credit!

This tax credit is a big deal because it helps to offset the cost of installing your panels. Solar panels are expensive, but they’re also worth it. Solar power is typically perceived as expensive, however, it is more cost-effective in the long run compared to other sources of energy. You will need to spend some money upfront, but once they’re installed, your solar panels are going to pay for themselves in no time at all!

In order to encourage homeowners to install renewable energy systems and lessen their reliance on fossil fuels, the Solar Tax Credit was made available. This credit aids in lowering atmospheric carbon dioxide levels and reducing the rate of global warming, which has caused problems like sea level rise, droughts, wildfires, and other problems that threaten our ecosystems.

If you are interested in installing solar panels on your roof, but don’t know where to start or if they’re right for your home and lifestyle, speak to one of our experts today! We can help you decide which system is best for your home and family, as well as how to proceed with the installation. From there, our team takes care of everything!

There is no better time than now to go solar. And if you already have solar panels on your roof, you can still take advantage of the Solar Tax Credit! Don’t let this opportunity pass you by! 

We understand that you might be skeptical about making the switch to solar energy, but we can assure you that once you’ve made the change, you will never want to go back to fossil fuels. Going solar is one of the best decisions you can make for your home and for the planet. Start saving money and saving the planet today – Go Solar!