Federal Tax Credits for Solar Installation
April 06, 2020
Back in 2005, the Energy Policy Act created incentives to promote solar energy and support our country’s transition to renewable energy. While these incentives were supposed to end in 2007, the benefits of this Act can still be felt today, especially by homeowners. Today, our team at The Solar Store is sharing what the federal tax credit is, and how you can take advantage of it for your very own solar installation.
The federal solar tax credit, also known as the investment tax credit, was built to save home and business owners on the upfront cost of solar. For 2020, solar customers of both residential and commercial properties can deduct 26% from their initial installation. This will be the last year the tax credit will be available at this percentage, as for 2021 the deduction will be reduced to 22%, and from 2022 onward there will be no tax credits available to residential customers.
You don’t need to jump through a ton of hoops to qualify for this tax credit either. As long as you own your solar energy system, you are eligible. When you file your federal tax return, speak to your accountant about form 5695, which will validate your renewable energy credits.
The Solar Store Can Save You Big
For over 60 years, The Solar Store has been providing southern Arizona exceptional value on solar services. We believe solar solutions are not only better for the environment but for your bottom line as well.
3 ways solar can save you money:
- The Solar Store stays up to date on current federal and state tax incentives, so we can walk you through the best way to save on installation costs, sometimes drastically cutting the upfront price.
- Producing your own solar energy will significantly reduce your energy bills. Those monthly savings can really add up.
- Solar energy systems on your property will increase the property’s value, with studies finding that properties sell faster and for more than homes with traditional energy systems.
If you’re curious about the upfront cost of installing solar for your home or business, call our team of experienced solar professionals. We will work with you to understand your property’s needs and offer you customized solutions to guarantee your solar panels are perfect.