KICKING OFF THIS DECADE OF ELECTRIFICATION, THE IRS IS OFFERING A HUGE 22% FEDERAL TAX CREDIT FOR HOMEOWNERS AND BUSINESSES TO SWITCH TO SOLAR ENERGY, AVAILABLE THROUGH THE END OF 2021
The Solar Renewable Energy Federal Tax Credit (ITC) is one of the most popular and successful Federal policies ever created to support renewable energy in the United States. The Solar Renewable Energy Federal Tax Credit can be claimed on personal or corporate federal income taxes for an amount of 22% of the total cost of a solar power system that is installed on your property from now through the end of 2021. And after that, this ITC incentive really does expire for individuals. (Note, owners of a home based business can still get a 10 percent business tax credit if installed after 2021).
With the Solar Renewable Energy Federal Tax Credit, you simply subtract your credit amount from the total tax the IRS says you must pay or have paid. (There’s no limit on the price of the solar system installation you choose.) It’s different from a tax deduction, which reduces the amount of income you pay taxes on. And so a $7000. credit is worth $7000. regardless of your tax rate. And if you can’t use the Solar Renewable Energy Federal Tax Credit, you can carry it over into later years.
What are the savings? The Solar Federal Tax Credit will substantially lower your solar project’s total cost. With the ITC rate of 22% for 2021, you could save $12,100. on a 13kWh system or $8800. on a 10kWh system. This savings when coupled with your utility rebates and net metering (where the utility company will pay you retail rate for electricity you produce and don’t use) most homeowners save up to 60%-70% on their energy costs.
A study by Sense, a company that produces home-energy monitoring devices, reports that in states with the most solar homes, residents with solar save, on average $1,075. annually.
Why switch to solar energy? You’ll produce your own electricity instead of buying it from a utility company, which will save you a lot of money, and it’s much better for the environment because it reduces demand for fossil fuels.
Also, you actually use the sunlight energy you are producing in real time – it is clean green energy produced by that great big fusion reactor in the sky!
And, if you produce more electricity than you use, you can sell the excess electricity to your utility at the retail rate, so you are literally making money “farming” electricity. Producing your own solar energy provides a locked and affordable energy rate, insulating your budget from rising electric costs. As electricity costs continue to rise, your savings increase – allowing for predictable, known numbers for your financial planning.
The Solar Federal Tax Credit applies to solar systems that produce electricity and heat water. The entire bill for a qualified system including the solar panels, labor costs for on-site preparation, assembly and installation of the system, and piping or wiring to connect the system to your house is included. Talk to your tax professional if you have any questions on this ITC.
During this decade of electrification, we are off to a great start with the 22% Solar Federal Tax credit, which is spurring thousands of homeowners to create and use their own renewable solar energy to save money and reduce their carbon footprint.
Our Optimum Energy Group Energy Advisors can’t wait to show you what your production and savings will be, and facilitate your transition to renewable energy. Give us a jingle at 1-888-782-6910 or www.OptimumSolarGroup.com
Save money, save the earth, simply smarter.
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