Tax season is coming and we have great news about a 2021 solar tax update. If you want to add solar in 2021 the recently signed federal spending plan has extended the federal investment tax credit for two years.
The tax credit will be 26 percent this year and next for eligible homeowners who buy a home solar system instead of a planned decrease to 22 percent. (This 26 percent credit is also applicable to commercial, industrial and utility-scale solar projects.)
The credit can be applied to any federal taxes owed. Don’t put off your solar purchase. The credit for home or commercial solar purchases drop to 22 percent in 2023. After that, the residential solar credit will be eliminated, and commercial and utility solar projects will be eligible for a 10 percent credit starting in 2024.
Take advantage of the opportunity to erase or trim your electricity bill. It’s a good call since many people had their utility bills increase with the pandemic. Residential electricity sales soared up 8 percent in the spring of 2020 compared to 2019 — a historical high, according to the U.S. Energy Information Administration.
Solar Financing Explained
Confused about how going solar might affect your finances? Talk to a SunPower by Sun Solar expert. We will spell out the solar tax credit along with how solar financing works so you can start enjoying the rewards of owning a solar energy system.
Many solar financing packages are available to help homeowners save money with solar. For a list of solar incentives offered in your area, visit the Database of State Incentives for Renewable Energy. You can enter your zip code to see a list of local rebates and credits.
For example, GRID Alternatives is available to homeowners who meet certain income requirements. You can find GRID programs with the DSIRE.
Our solar educators are here to help maximize your savings via solar tax credits and other local or state incentives that may offset the cost of home solar.
For more information, call us at (661) 379-7000 or fill out a contact form for a free solar quote.
SunPower offers services in the Central Valley and throughout California, with offices in Bakersfield, Fresno and Anaheim.