If you’re reading this and you have not gone solar yet, don’t worry you still have time. This year is the final year to receive the 30% federal solar tax credit, also known as the Investment Tax Credit (ITC).
The 30% federal tax credit allows for you to deduct 30% of the cost of your solar installation from your federal taxes. You must own the system by purchasing with cash or solar loan (lease or PPA financing cannot claim the tax credit). The ITC applies to both residential and commercial systems and there is no cap on its value. You can also use the ITC on your battery storage tied to your rooftop solar system.
You don’t want to wait too long as the year is only getting busier. The solar industry is predicting a high number of installs this year with other homeowners taking advantage of the remaining days of the 30% ITC. The tax credit requires that all solar systems are installed and checked by your utility company before December 31st, 2019. You will have to keep in mind that permitting and installations can take up 10 weeks during regular business. Starting early will eliminate any potential stress or loss of savings.
In 2020, the tax savings will drop to 26%. Don’t lose out on free money from the government to go solar.