How Does The Solar Tax Credit Work

How Much Can I Save?

The financial savings that come from taking advantage of the federal solar tax credit can be significant. Not only do you get a 30 percent discount on installation costs but any additional charges like labor and parts are also deductible. You also don’t have to worry about waiting to get reimbursed – as long as your credits total up to less than $5,000 in any given year, you’ll receive them in full right away.

Not only does the federal solar tax credit offer substantial savings when installing a home system, but there are plenty of other advantages as well. The electricity generated by a solar power system reduces or eliminates electric bills and gives users greater control over their energy consumption. Solar systems increase property values while decreasing utility bills; they also protect homeowners from potential future rate hikes in their local area due to changing utility costs. Finally, since most state governments encourage clean energy usage with additional incentives, individuals can receive even more financial benefits from going green!

Eligibility

To be eligible for the federal solar tax credit, your system must meet certain requirements. The system must use certified solar technology (photovoltaic systems), it must be installed on a primary residence or second home, and you must own the system (not lease it). If your system meets these criteria, then you can take advantage of a 30 percent federal income tax credit on all costs associated with the installation of a residential solar energy system through 2023.

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