Understanding the Solar Investment Tax Credit

Tax CreditAre you interested in transitioning to solar power but you still aren’t convinced that the benefits outweigh the costs? The Solar Investment Tax Credit may just change your mind. Not only can it provide a savings on installing solar energy, but it can help you realize how making an environmentally conscious choice can be the smart choice for your utility costs, as well.

What is the Solar Investment Tax Credit?

In a nutshell, this credit, which was first put into effect back in 2005, applies to homeowners who invest in solar utilities for their home. According to the Solar Energy Industries Association, if you purchase a complete solar system and have it installed in your home, you are eligible for 30 percent tax credit that you can apply to your taxes when it comes time to file.

This can mean major savings, not only on the cost to purchase a new solar system but in the long-term benefits of having a solar-powered electricity generating source. The best part about this credit is that it has officially been extended until the end of 2023, meaning that consumers, project managers and commercial property owners who are looking to take advantage still have time to make the most of this credit.

The SITC is doing big things to help drive solar adoption, as well. During the past few years, this credit has helped further drive a continued decrease in solar prices, and with a greater demand has also come greater technological efficiencies in creating panels and improving overall generation capabilities.

As a matter of fact, solar power has recently witnessed a decade of record-breaking growth, as Curbed notes, especially as the technology evolves and more people get on the bandwagon. The Solar Energy Industries Association predicts a big future, as well, an shows that solar generation is on pace this year alone to nearly double in size.

How Can You Qualify?

All you really need to do to qualify for the SITC is have a solar energy system installed. The key for qualification is that you must own your solar system; you cannot lease it. When you file your taxes, you will need to complete IRS Form 5695, which is a document specifically set for residential energy credits, and enter the amount you paid for your solar services.

With such a great incentive to invest, there’s never been a better time to choose solar, and if you’ve thinking about adding panels to your property, call the experts at Rick’s Energy Solutions. Our experts have more than 40 years of experience in the field, and we can perform a whole property green energy audit to help you identify the optimal placement and other cost-saving improvements that can make your home or business more energy efficient, helping you save money and the environment. To learn more, call Rick’s Energy Solutions today at 707-578-5380.