Federal solar energy investment tax credits renewed!
UPDATE: August 2022
Congress extended the investment tax credit for solar energy and storage systems for residential installations done before December 31, 2034.
The new ITC schedule is as follows for residential & commercial installations:
2022 thru 2032 = 30%
2033 = 26%
2034 = 22%
2035+ = zero
In 2005, America’s Energy Policy Act kick-started the 30 percent federal Renewable Energy Investment Tax Credit (ITC) for incorporating solar energy among the nation’s home and businesses.
This incentive was initially scheduled to end in 2008 but was extended until 2016. From there, the policy was made to continue through 2019, with the reduced credits in 2020 and 2021. It was later extended through 2023.
In August of 2022 Congress increased and extended the solar investment tax credit once again.
The federal incentive program has helped create explosive growth in the solar industry. According to the Solar Energy Industry Association (SEIA), the solar industry has averaged 59 percent growth annually for over a decade, creating more than 10,000 small businesses, 250,000 jobs, and generating over $17 billion in the U.S. economy in 2017. SEIA states that current solar energy systems installed generates enough power for over 11 million homes.
According to the U.S. Dept. of Energy, to be eligible for the federal Renewable Energy Investment Tax Credit (ITC), a solar energy system must be placed “in service” by December 31st of that year.
The Energy Star website states that the IRS defines “placed in service” as when the property is ready and available for use. Essentially your solar energy system must be installed and operating by December 31 to qualify for that year’s Federal Renewable Energy Tax Credit.
Phil Edwards, President of Jamar Power Systems in Santee CA, stated, “Based on experience, when tax credits change, a system-wide rush to install occurs, and demand outstrips supply. First choice contractors become booked up, and the consumer is forced to use a second or third choice contractor at a higher price. It’s simple economics.”
“If you’re thinking about a solar project for your home or commercial property, you should start the process now before you miss the window of opportunity,” Phil Edwards continued. “Especially for commercial properties, where the solar construction process usually takes longer.”
Currently, zero $ down solar loans with monthly payments less than your average electric bill are readily available to qualified consumers. Savings can begin the day your system is turned on.
“We encourage local property owners to learn more about solar power and their financing options.” Phil Edwards ended.”
Use our FREE San Diego Solar Calculator to see how much solar power would cost for your home.
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