Don’t Miss Your Chance to Get the Solar Tax Credit

Back in 2015, homeowners, solar companies and environmental activists alike were delighted to learn that Congress had extended the solar panel tax credit. Guess what? That extension is coming to an end soon. Yes, time flies, but the good news is there’s still a little bit of time to take advantage of the 30% tax credit on a solar installation.

The current federal solar tax credit, also called the investment tax credit (ITC), lets you deduct 30 percent of the cost of installing a solar energy system from your federal taxes. Both homeowners and business owners can take advantage of this credit, and there’s no cap on its value. However, there’s a time limit.

The tax credit only remains at 30 percent through the end of this year (2019). In 2020, you can still benefit with a 26 percent credit. In 2021, this percentage drops to 22 percent. And after that, only owners of commercial solar energy systems can deduct 10 percent of the cost of a system from their taxes. There will no longer be any federal tax credit for residential solar systems.

How to Qualify

If you purchase a solar energy system, you’ll be eligible for the solar tax credit. If you don’t have enough tax liability to claim the entire credit in one year, you can “roll over” the remaining credits into future years, as long as the tax credit is in effect. It’s important to note that you don’t get to take advantage of the solar tax credit if you lease a system. To claim the solar tax credit, you’ll include it on your yearly federal tax return.

So, if you’ve been sitting on the fence about solar, it may be time to make a decision. Want to learn more about how solar can help reduce your monthly costs and enable you to increase your commitment to the environment? Call Cool Blew Solar today for a free quote at 623-234-2836
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FAQ's

Is Solar Energy Expensive?

The size of your panel installation and the needs of your home will affect your costs. The average net cost of a 5.69kW system is $13,838 cash after 30% rebate (according to solar-estimate.org). An average-sized system can cost up to $35,000. Larger installations will require more hardware, planning and construction time. This can further increase costs. While solar panels are expensive, they have many distinct benefits. Cool Blew Electric & Solar’s experts can assess your situation and goals and recommend a cost-effective system to meet your needs.

How Much Can I Save By Installing Solar Panels?

An average-sized system (5 kilowatts) can reduce up to 50% of your monthly electricity bill. A 5.69kW system would offset 100% of your energy usage if your typical monthly bill is $138. Over a period of 20 years, these savings can add up to $30,000, based on your location and energy usage.

How Long Would It Take to Recoup My Solar Investment by Solar Energy Savings?

With a 5.69kW Solar system you would recoup your savings in 7 years and 2 months but with continuous Utility increases every year your Return and Investment will be much sooner.

What is a Solar Lease Program?

The Solar Lease Program has been one the most popular option that homeowners have chosen over the years. Solar Lease programs gives homeowners the opportunity to take advantage and put Solar on their homes and a guaranteed savings from their Utility for little to no money out of pocket. Most Leases are 20 year power guarantee from the solar provider and includes fixed monthly payments, no repair cost, fully insured and warrantied for the life of the system.

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