Solar consumers have become accustomed to the 30% tax incentive the federal government. The initial bill, known as the Investment Tax Credit (ITC), allows homeowners and business owners to deduct 30% of the cost of installing a solar energy system from their federal taxes. Even better, there is no cap on the value home or business owners can take on the credit. EnergySage reported that the average residential solar shopper saved over $5,000 on the cost of going solar in 2017 alone.
But, that 30% tax incentive is not forever.
Clock is Running Down
The beginning of 2017 came in with the promise that the ITC would be extended. But the extension came with a caveat. Through December 31, 2019 – solar consumer could take advantage of the 30% tax credit. But, after 2019, the tax benefit would drop. By 2022, the only remaining tax incentive available will be 10%. In fact, by December 31, 2021, residential customers will no longer qualify for any sort of tax credit at all. Commercial customers will still quality for a 10% tax credit for an undefined period of time.
What does all this mean? It means that the clock is ticking. It means that NOW is the time to get solar installed on your business or home to take advantage of the solar tax credit and keep an average of $5,000 in your pocket.
This means you have to timeline your solar installation. Keep in mind that purchasing a residential solar system takes time. It isn’t just a purchase – it is a home improvement process. You can’t just ask for a solar system the day before the tax credit expires. You must work with you local, licensed and fully insured solar installation company to design and actually install the system. Plus, the system must be connected to the local utility grid.
Commercial installations take even longer. The design, engineering and permitting process is much longer for larger, commercial systems. In many large projects, there is a 12 month install cycle. This means business owners are under more of a time crunch to install than residential customers. Now is the time to begin exploring your solar installation options.
Now or Never
Now is the time to install solar panels if you want to take advantage of the tax credit. The solar industry is not going anywhere – but, the ability for a homeowner to save money is slowly disappearing. Although commercial owners have an extended opportunity to save up to 10% through the ITC, that is a far cry from the current levels of 30%.
IF you have ever thought about going solar, reach out today. Whether you pick up the phone, send us an email or stop by our Solar Showroom and Design Center – today is the day to move forward before that 30% savings dwindles away into no savings at all.
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