Do you want to help save the environment and combat climate change? Are you looking to save money on your electric bill? Switching to solar energy is a great way to achieve both. Now is the perfect time to make the switch, as there are several tax incentives for solar available. Data shows that 46% of homeowners are looking to install solar panels.
Want to get your share of the solar energy tax credits? You should consider applying for the federal solar power tax credit. Read this article to learn how to make the switch to solar energy and how to take advantage of this tax credit.
Saving Money With Solar Power
If you install a solar energy system, you can save a lot of money. Rooftop solar panels produce electricity by using the sun’s powerful energy.
It can cut down on the electric bill. It can also help reduce your carbon footprint. It’s a win-win situation all around.
The federal government offers solar tax credits to help homeowners make the switch. The credits date back to the Energy Policy Act of 2005. Under this law, homeowners who install solar panels can reap a lot of benefits.
Qualifying for the Federal Solar Power Tax Credit
Homeowners are eligible for a significant credit if they own their solar energy system. Those who install solar panels by December 31, 2022, can deduct up to 26% of the cost of the system from their taxes.
Let’s do the math. If you install a system that costs $10,000, you can receive a credit for up to $2,600. Sounds great right?
This credit ends on December 31st, 2023. It’s best if you install the system before then. After 2022, the credit will go down to 22%.
This is called the sunset date. While you might be able to take advantage of this credit in 2022, it’s a good idea to act now. It can take months to approve solar panel installation, so don’t risk the chance of losing out.
Consider the Rollover Factor
What’s the rollover factor? This is one of the great benefits of this solar tax credit. Homeowners who don’t use the full 26% tax credit in the current tax year can carry it over to a future tax year.
Here’s an example. You get a $6,000 credit, but your tax liability is $4,000. You can carry over the $2,000 that remains to the following year.
The credit will not go to waste. You do have to make sure that you file your taxes right so that there aren’t any issues processing the credit.
Now is the best time to install solar panels on your rooftop. Visit blueravensolar.com/north-carolina/ to get more information about solar panel installation.
Take Advantage of the Solar Energy Tax Credits
Don’t think about it any longer. Install solar panels and get the solar energy tax credits. You will be glad you did as it will save you a lot of money in the long run.
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