The renewable energy tax credit is a law that allows taxpayers a 30% credit on the qualified expenditures for a solar system owned and used as a residence by the taxpayer. This credit is not only instrumental in helping to make solar more affordable, but it is also instrumental in helping to drastically quicken the return on investment timeline for solar owners on their solar system. This credit is applicable to both the installation costs as well as all related solar equipment costs necessary for interconnecting the solar system to your utility.
What’s critically important for people considering solar to understand is this TAX CREDIT WILL NOT LAST FOREVER! NOW IS THE TIME TO INSTALL SOLAR TO MAXIMIZE THESE TAX CREDITS! After 2019, these credits begin to diminish and will eventually disappear by the beginning of 2022. The schedule for credits is as follows:
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 1/1/2021
- 22% for systems placed in service after 12/31/2020 and before 1/1/2022
Now is the time to start planning and getting quotes for a solar system to help maximize the 30% tax credit to help make your solar system more affordable and provide a faster return on investment. The longer you wait, the less credit you will receive. If you wait too long, the credits will disappear. The time is now. What are you waiting for?