Tax Credit for Solar Installation

Does The Residential Solar Power Tax Credit Still Exist?

Over the last few years, the uncertainty of how the government and utilities were going to handle tax credit for new solar systems has caused confusion to the residential marketplace. Are tax credits gone? Are we running out of time? Did I already miss the boat? Luckily, there’s now a defined answers to these questions.

In February of this year, the Bipartisan Budget Act of 2018 reinstated the tax credits available for residential solar customers. The Act outlined a structured, but gradual decrease in the credits over the next three years for systems placed in service on or after January 1, 2006, and on or before December 31, 2021. The breakdown according to Energy.gov1:

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022

In additional to the natural reduction of your electric bills over the next 25 years, adding renewable solar energy will increase the value of your home without directly increasing the property tax assessment from the installation.

Please consult with your accountant regarding your eligibility, and how you can benefit from this tremendous tax credit

Solar Panels Worth It in 2019

Are Solar Panels Worth it For Your Home in 2019

Are solar panels worth it for your home?

Here are some of the most popular questions answered

Will solar panels increase my home value?

In most all cases a properly designed PV (photovoltaic) solar system will add value to your home. However in some rare cases where the system is poorly designed, it is conceivable that a system could in fact lower the value of the home. This is why a properly designed solar panel system should always take into account not only the initial production desired but also longevity (is the equipment speced designed to last for the 25 year life of the system?). Most old tech inverters (string type) are only designed to last 10 years.

Another important value consideration that is often overlooked by the designer is that of aesthetics. Are the panels placed in a hodge podge manner or are the homes aesthetics taken into account?

Will solar panels save me money?

As a rule most PV solar systems will save you money. Savings come from a variety of sources. The first and easiest way to see this is by home much your electric bill is lowered, immediately. This of course is often balanced by a loan payment that was used to finance the system.

Current Utility Cost Sample

1 Year Utility Cost Without Solar

Utility Savings After Solar (1 year)

After Solar Utility Savings

The second major savings comes from the 30% Federal Tax credit. In a typical system, this can be a $6-10,000 federal tax credit.

30% Federal Tax Credit Example

Is solar worth it in 2019?

 

The third savings which is always the largest and yet toughest to see, is the accumulated savings over time due to the system offsetting continuously increases power costs. While a customer may be offsetting a $250 average bill in month 1, by year 10 that same bill may easily be $460, and a stunning $1,270 in year 25. A $25,000 PV system at todays cost can save a consumer more than $200,000 in lifetime electric bills over 25 years.

Contact Us Today

Are solar panels worth it? The answer is simple, you will save a considerable amount on your electricity bill and increase the value of your home.

Want to learn more about solar panels? Contact us today! We would love to chat with you 1.760.504.0388.