For homeowners and business owners going solar in 2022, there are a variety of solar incentives available from the federal government, state agencies, and local governments to help reduce the upfront cost. One of the most significant ones is the Federal Solar Investment Tax Credit that has contributed to solar growth for over a decade.
Known to industry professionals simply as the “Solar ITC”, this incentive is a direct dollar-for-dollar tax credit from the U.S. government that is designed to drive down the cost of installing solar projects on residential and commercial properties. The Solar ITC allows solar customers to claim a one-time tax credit if they finance their solar photovoltaic (PV) systems with cash or loans.
The good news is that the solar ITC also benefits households and businesses that do not purchase a home solar system outright. Because it can apply to any system owner, including project financiers, it also translates to benefits for customers that enter a solar lease agreement or a solar power purchase agreement (PPA) framework.