If you are looking into switching to solar power, you have probably heard of the Solar Investment Tax Credit (ITC). What you may not be aware of is that the tax credit is not permanent. This begs the question; how long can I get tax credits for solar panels? Am I too late to take advantage of the most savings? We’ll review the intricacies of the ITC and give you an idea of how long you have to take advantage of this federal incentive.
Solar Investment Tax Credit Basics
In 2006 the ITC was created to encourage the growth of solar power in the US. According to SEIA.org, the solar industry saw a vast amount of growth under this tax credit, more than 10,000%, in fact. This created countless jobs and has greatly helped the industry move forward with research and development.
The ITC has been renewed through the year 2022, however, each new year will bring a change to the amount that is credited. In 2020, the credit is 26%. Next year, in 2021, it will drop to 22%. Finally, starting in 2022, the credit falls to 10%; however, it will apply to commercial projects only.
What this Means for You
The time to act is now! To save the most money, you need to take advantage of the existing credit while it lasts. Every year that you delay in switching to solar power is more money out of your pocket. For a detailed example and to learn more about the extensive savings the tax credit could bring you, read this.
Got other questions about going solar? We’ve got a blog for that! Check out the All About Panels page to get started on your solar journey. Or, for a free, no-obligation quote on your new solar energy system, contact us to make an appointment with one of our knowledgeable consultants.