When you consider all the monthly bills you have to pay as a homeowner, one of the biggest recurring charges you have to deal with is your energy bill. The price you pay for energy goes up or down (but mostly up) depending on the rates established by your local energy company, and as a customer you have little control over how to stabilize this pricing or reduce your energy use.
Solar is Energy that Pays for Itself
Today, more than ever, going solar with panels on your rooftop is a way many escape the never-ending price increases of traditional energy. And it offers clean, reliable energy that over time eliminates your energy bill altogether as your system is paid off—which thanks to the current ITC federal solar tax credit, may be sooner than you think.
Your Home and Solar Tax Incentives
The solar Investment Tax Credit (ITC) allows you to deduct 26% of the cost of your solar energy system on your federal taxes. But it is phasing out, so this level of credit is only available for two more years. The ITC rate will fall to 22% in 2023, and finally, the residential rate will become 0% in 2024, while the commercial and utility markets will remain at 10%.
The ITC is a credit and not a refund, so that means you can’t get more back than you owe in a single year. But you don’t have to worry about losing that credit, as remaining credits roll over to the next year.
You can expect to get as much as $9,000—OR MORE—off the cost of your solar energy system with the ITC, and it really is ‘or more’ because there is no cap.
You must own your home and your solar energy system to claim this tax benefit. That means the system cannot be leased, however it does not have to be your primary residence. This can be a great way to offset your carrying costs of other properties you own.
Get going on going solar for your home! Taking advantage of today’s tax incentives can have a big return on investment and even boost your home’s resale value.