The 2021 ITC Can Save You Thousands on Going Solar
If you’re considering going solar for your home, there are a number of federal and local incentives that can help take thousands off the cost of your initial rooftop solar energy system and installation. For 2021, the solar tax credit, also known as the Investment Tax Credit (ITC,) gives you the opportunity to deduct 26% of the cost of your solar energy system on your federal taxes. But you’ll want to get started soon because this deal from the government is only available for two more years.
How It Works
Here’s how it works: Purchase and install your solar energy system in 2021-2022 and claim the ITC solar credit when you file your federal taxes. The tax credit allows you to deduct 26% of the cost of your solar energy system.
Who Can Claim the ITC
Residential, commercial, industrial, utility-scale — any solar project that begins construction in 2021 and 2022 will be able to receive a tax credit of 26%. The ITC rate will drop to 22% in 2023, and finally, the residential rate will drop to 0% in 2024, leaving the commercial and utility markets to sit permanently at 10%.
How Much Can You Save
You can expect to get as much as $9,000 —OR MORE—off the cost of your solar energy system with the ITC, and we say MORE because there is no cap. And it applies to both residential and commercial systems.
However, the ITC only applies to the cost of your standard solar energy system, batteries not included. It is possible to have solar without battery storage, with a grid-tied solution that allows you to draw from the grid at night, and from your solar during the day.
If you rent or lease your solar panels, the solar tax credit is not available to you. It is, however, available to whoever has leased you the solar panels. Time to own your power—don’t let them get all the credit!
Taking advantage of the ITC can help your solar energy system pay for itself even quicker than usual. But this 26% federal solar tax credit won’t last forever. In 2020, the current phase was extended, keeping the 26% tax credit rate for another two years.
Don’t miss your opportunity to save thousands on going solar for your home. Get your roof qualified today and start seeing a cleaner, more affordable future today.