Solar energy is an investment for the future.
It is also an investment for today because it saves families, businesses and communities money right away on their utility bills and offers peace of mind because solar energy is reliable and good for the planet.
If you’re thinking about making the switch to solar and want extra savings, you’re on the clock. The Solar Investment Tax Credit empowers both home and business owners to deduct 26 percent of the solar installation costs. This worthwhile tax incentive won’t last long, however.
As more Americans feel the impacts of the pandemic on their daily lives, we understand how important it is to save money wherever possible. Solar technology accomplishes just that because it’s as affordable as ever. And with this tax credit, families and businesses can enjoy added savings on a solar electricity system or application in a matter of weeks as 2021 fast approaches.
Future residential and commercial solar adopters must act now because the 26 percent tax credit is set to expire this year. It’ll drop to 22 percent next year before the residential tax credit goes away for good.
Keep in mind that the tax credit is only valid if you own the solar panels. So, if you’re thinking about leasing or making arrangements through a power purchase agreement, you will not likely qualify.
While the IRS has guidance for commencing construction, which allows businesses to lock in the 26 percent tax break as long as the solar project begins in 2020 and is completed by 2024, this courtesy does not cover residential projects.
Finally, the residential solar energy system must be placed in service by Dec. 31, 2020. This condition for the tax break means that the installation must be complete within the timeframe in order to receive this year’s rate. In other words, signing a contract, making a payment and getting construction started before year’s end will not be sufficient. That’s why it’s important to start the process as soon as possible so the project is ready to power your home or business before the new year.
We are the Sacramento region’s solar leaders, offering award-winning customer service and incredible solar applications for your home or business. Aztec Solar provides solar energy solutions that meet the energy needs of residential, commercial, industrial and governmental entities.
Please contact us today to learn more about our products, including solar batteries, solar water heating, solar pool heating and solar electric experience for all applications.