Want a 25% discount on your solar panel? Well, the Solar Investment Tax Credit takes it even further and offers you a 26% discount when you decide to install a solar system.
This is one of the most effective solar tax credits in the world as it has been responsible for increasing the U.S. solar industry by over 10,000% since 2006. Taking advantage of these tax credits can help you make the switch to solar power and save on your monthly utility bills.
Want to learn more about solar tax incentives? We’ve got you covered.
What Are Solar Tax Credits?
A solar tax credit is an indirect discount given to households and businesses that invest in solar energy. This kind of discount isn’t given to you from the company you buy your solar panel from but is rather given to you in the form of a tax credit.
This means that the discounted amount can be claimed against your personal income taxes as an individual or business. This tax credit directly decreases the tax, dollar for dollar, that you would otherwise have to pay to the government.
What Is the Solar Investment Tax Credit?
The Solar Investment Tax Credit (ITC) is a groundbreaking federal policy that aims at making solar power more accessible for households and businesses in the United States. The ITC was enacted by Congress in 2006 and directly contributed to adding billions of dollars to the green economy.
This policy was seen as more than just a tax incentive for solar panels as it covered the cost of the entire system, including the installation. While there is still a long way to go, the 26% discount is set to decrease to 22% in 2023.
Has the Solar Investment Tax Credit Been Effective?
This financial incentive has made hundreds of thousands of homes make the switch to solar. This has created thousands of jobs and saved homeowners billions in reduced utility bills. The solar market has also seen significant development as the cost of solar energy dropped by around 70%.
Although the solar investment tax credit has been successful, solar energy only represents around 3% of the total energy production in the U.S. While this may sound discouraging, this is a massive increase from 0.34 GW in 2008 to 97.2 GW in 2021.
Professional Solar Installers
If you need help making the most out of the available solar tax credits in your city, partnering with a professional solar installer like Blue Raven can help. Experienced solar installers have gone through this process before and can help make the entire process quick and easy.
Save Money by Using Solar Tax Credits
Solar panels may be great for your energy bill and the environment, but they can also be expensive to purchase and install. This is why government incentives such as solar tax credits are so important to encourage more homes to make investments.
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