A Guide to the Solar Investment Tax Credit in 2023 and Beyond

A Guide to the Solar Investment Tax Credit in 2023 and Beyond

Solar Investment Tax Credit
Solar Investment Tax Credit

 

 

 

As you know, California is notorious for having some of the highest electricity rates in the country. Unfortunately, there is plenty of reason to believe they will continue increasing. Home solar with battery storage is an alternative to buying electricity from a utility company, and a way to take precautions against rising energy costs. There is a Solar Investment Tax Credit (ITC) available to all solar energy buyers. This tax credit might make all the difference when making the decision to go Solar!  https://www.cleansolar.com/solar-energy-systems-why-solar-and-battery-storage-is-so-beneficial/

In December 2022, with the Inflation Reduction Act, the U.S. extended the Federal Investment Tax Credit for solar at 30% through 2032. The solar Investment Tax Credit (ITC) is a dollar-for-dollar reduction of the income tax you owe. If your solar energy system generates electricity for a home in the United States, you qualify. The ITC applies to not only solar panels, but to battery storage as well. If you already own solar panels and want to add battery storage, the batteries will qualify!

What is covered?

  • Solar Photovoltaic (PV) Panels
  • Energy storage devices (batteries) with a capacity rating of at least 3 kilowatt (kWh) hours
  • Solar and battery equipment costs such as inverters, mounting hardware, and wiring
  • Labor costs for installation including fees related to permitting and inspections

Now is a great time to add solar and battery storage to your home and receive the 30% federal tax credit for both installations! For more information on how to claim the federal solar tax credit, visit the Department of Energy’s website at:  www.energy.gov.