It will be time to do your 2020 taxes before you know it, and it’s important to stay abreast of how current tax law changes could impact your financial situation.
Did you know that there’s a federal tax credit for going solar? Fortunately the recently approved federal spending program extended the federal investment tax credit for the purchase of a home or commercial solar system.
Instead of being lowered down to 22 percent as planned, the federal tax credit (ITC) is to remain at 26 percent until 2023 for eligible homeowners who go solar.
(Note: The 26 percent ITC also applies to commercial, industrial and utility-scale solar projects.)
The ITC can be applied against your federal taxes. It is set to be reduced to 22 percent in 2023. After that, residential solar projects will not be eligible for any credits, while there will be a 10 percent credit offered for commercial and utility projects.
So why delay making a decision that has tax benefits while lowering (or getting rid of) your PG&E bill — a bill you likely are suffering sticker shock from thanks to all the pandemic shelter-in-place orders. The U.S. Energy Information Administration reported that home electricity sales were up 8 percent last spring compared to 2019. This was a historical high.
Learn About Solar Financing
If you’re confused about how buying solar panels will affect your finances we hope you’ll contact a SunPower by Solar Technologies solar consultant. We’ll explain how the tax credit works and find a solar financing option for your needs, so you start enjoying the benefits of being a home solar owner.
There are financing packages designed to help every homeowner save money with solar regardless of their budget or credit history. And you’ll be helping the environment at the same time.
There’s a handy resource called the Database of State Incentives for Renewable Energy that lists all the solar incentives locally available. Just enter your zip code to see California rebates and credits.
For example, GRID Alternatives is available to help homeowners who meet certain income requirements. You can find GRID programs with the DSIRE.
It’s our goal to help you save money while going solar via solar tax credits and other local or state incentives that can help offset the cost of your solar energy system.
For more information, call 833-200-8763 or contact us for a free solar quote.