2018 was a great year for solar. Across the world over 90 gigawatts of solar was installed. That’s enough to power 14,000 homes for 25 years! But here at Select Solar Pros we believe that 2019 will be the best year yet! Read on to see why. Or if you’re here for a free quote just click the button below.
Our quotes are always free and no pressure.
Federal Tax Credit
The federal government’s renewable energy incentive program is still in full force! This means that you can effectively reduce the cost of your solar install by thousands of dollars through tax credits. But this program won’t be available forever. In fact, if it wasn’t for an extension passed by Congress in 2007 it would already by gone! 2019 is the last year to get full advantage of this program. It will still be around in 2020, but it won’t be as good as it is now. Read on to see why.
What is the solar tax credit?
The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct up to 30% of the cost of installing a solar energy system from your federal taxes. This applies both to residential and commercial systems and there is no cap on its value! But 2019 is the last year to claim up to 30% of the system cost. In 2020 this drops to 26%, in 2021 it drops to 22%, and then it will be gone for residential systems. 2022 and onward will only have a 10% credit for commercial systems only.
Do I qualify for the solar tax credit?
As long as you own your system you are eligible for the federal tax credit! Even if you don’t have enough tax liability in one year to claim the entire credit you can “roll over” the remaining credits into future years as long as the tax credit is still in effect. Remember, if you decide to do a PPA or solar lease you do not own the system, as thus are not eligible for the tax credit. Be sure to talk to a tax professional to see if you have enough tax liability to take advantage of this program. If you do, remember to tell a tax professional and they can help you claim the credit after you go solar.*
New Construction Mandates
In 2020, California is rolling out more regulation on new construction. Part of these new mandates is the requirement that all new homes have solar panels on them.
It is still unclear how this will affect the industry but here at Select Solar Pros we feel like this will dramatically increase the cost of solar panels.
The way we see it, it’s just a simple equation of supply and demand. Supply will remain the same as it has been for the last several years. But because it will now be required, demand will be forced to increase significantly overnight.
We expect prices to rise across the board in 2020, and we may even start to see these increases midway through 2019 as well.
Because of that, if you have ever thought about installing solar, we recommend getting a free quote as soon as you can! We can help you determine if solar is right for you and, if it makes sense, we can make sure we get you installed quickly and producing power before any price increases.
2019 will be an awesome year for solar! And we hope to be able to save our clients as much money as we possibly can not only in power bill savings, but also in industry discounts. Our unique positioning allows us to get the best possible price on top notch equipment, and so we typically can save our clients up to 20% off of industry standard pricing! If you’re actively looking at solar or just have a few curious questions, fill out the form below and let us see how much we can save you!
Free, No Pressure Quote Request
*Select Solar Professionals does not offer any tax advice with the above article and urges clients and readers to consult with a tax professional for questions and advice pertaining to the Federal Solar Tax Credit (ITC) and any other tax related questions.