Solar power is cheaper than it has ever been, thanks to a 30% tax credit from the federal government. This credit makes solar for your home or business affordable, but this credit starts to decrease year by year. Go solar today and get the full savings!
The Solar Tax Credit
Since 2016, the federal government has offered a 30% credit for residential and commercial solar. This credit makes solar far more affordable, and simply requires filling out an IRS form. You can claim this credit anywhere in the U.S. for the same fiscal year after installation is completed. Be sure to take advantage of this opportunity to save when going solar, and make the project start paying for itself! For a more complete review of claiming this tax credit, visit this page.
One more fun nugget about the tax credit: it can apply to related steps that are necessary for a home or business to go solar, such as tree removal, roof repair, electrical upgrades and battery storage!
Solar Credit Phase-Out
Unless Congress acts soon, the federal solar tax credit will begin to phase out after 2019. In 2020, the credit will drop from 30% to 26%, and in 2021 the credit drops again from 26% to 22%. This steady yearly decrease dramatically changes in 2022, when the credit drops to 10%. This is also the final year of credit for residential solar. From 2023 and onward, only commercial solar installations will receive a tax credit, set permanently at 10%. Congress may extend this tax credit in the future, but so far this schedule is in effect.
Start Saving Now
Because the solar tax credit starts decreasing after 2019, anyone interested in going solar should start the process soon. While there is IRS guidance for taking the tax credit in the following year, in our experience the project must be substantially complete in order to take a tax credit in the prior year before the system comes online. The credit still will take off more than 20% of your costs until 2022, but you can save the most in going solar sooner. Keep in mind that Maryland, DC and Virginia may have state incentives for solar that apply to you too! Start going solar and get a quote today!