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Time’s Running Out to Claim Your Solar Tax Credit

May 02, 2019

Time’s Running Out to Claim Your Solar Tax Credit

Good things don’t always come to those who wait. That’s especially true right now for anyone who’s been riding the fence about going solar.

If you’ve considered adding a new solar energy system to your home, apartment complex, or office building, you’ve probably heard about the 30% federal tax credits that are available. For the past few years, the Solar Investment Tax Credit (ITC) has been a big draw for many to finally take the solar plunge — because a 30% rebate when the nation's average home solar installation costs $18,900 to $21,300* is a pretty amazing deal.

Since the ITC was created, we’ve seen a 54% increase in solar adoption across the country. It’s a great thing for homeowners looking to reduce their energy costs, and a great thing for our planet.

Remember: you’re only eligible for the ITC if you purchase your system with cash or through a loan — and not if you lease the system.

The ITC is Decreasing

As great as it is, the ITC is only truly great for 2019. Starting in 2020, the ITC will drop from 30% to 26%. In 2021, it drops to 20%. And in 2022, it disappears completely for residential customers.  

That means by waiting, you could see your savings reduced by anywhere from $700 to about $6,000. Not to mention the cost savings you’re missing out on simply by paying the utility company each month instead of owning your energy.

The average home installation takes a month or more to plan and prep for prior to installation. And your eligibility for the ITC is only confirmed once installation is complete. So now is the time to start the process.

From the savings you’ll see on your monthly energy bill to the reduction in your own impact on the climate, to the best tax credit offering you’ll likely ever see, why would you wait?

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