Get Your 30 Percent Solar Tax Credit While You Can

In 2015, Congress extended the solar panel tax credit by five years. Guess what? That extension is coming to an end. And, if you’re contemplating going solar, this may impact you.

What Is the Solar Tax Credit?

The federal solar tax, also called the investment tax credit (ITC), enables you to deduct 30 percent of the cost of a solar energy panel system installation. This federal tax credit is good for both commercial and residential solar systems with no cap on its value.

While this tax credit is a valuable opportunity for homeowners and business owners alike, it’s coming to an end over the next several years. Here are the details:

The tax credit is 30 percent of the cost of a system through the end of 2019.
The tax credit drops to 26 percent in 2020.
The tax credit drops to 22 percent in 2021.
From 2022 onwards, the tax credit drops to 10 percent for commercial solar systems, and there will no longer be a federal credit for residential systems.

Will You Qualify for the Credit?

If you purchase a solar energy system, you will qualify for a tax credit through 2021. It’s also important to remember that if you lease a system, you are not the owner of it and will not quality for the credit.

How to Claim the Credit?

To receive your credit, you’ll need to claim it on your federal tax return using Form 5695. Start by reading the instructions on the form to determine your eligibility. Then, complete the form to validate your qualification for renewable energy credits. After that, you’ll add your renewable energy credit information to your standard 1040 form.

Want to Learn More?

With evolving credits, rebates and discounts, it’s important to get up-to-date information from a solar expert. That means calling Cool Blew Solar at 623-234-2836.

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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