COVID-19 stimulus bills have been getting all the attention lately, which may mean that you're not up-to-date on the big win for renewable energy!
The stimulus bill came in just the knick of time, as tax credits were due to drop for new owners of residential solar panels in 2021. Here's everything you need to know about the investment tax credit (ITC) extension and what it means for you.
The Details
Because the covid pandemic is at the forefront of everyone's mind, it stands to reason that the recently passed relief bill focused on providing financial aid for businesses and individuals alike.
The solar benefits and other energy-conscious aspects of the bill aren't getting as much wide-spread attention, namely because there's a lot going on in this more than 5,000-page piece of legislation. If you're a homeowner interested in going solar, this relief bill will help you save on your installation costs.
The investment tax credit is a solar incentive for homeowners who own their renewable energy system.
This tax credit allows those owners to deduct a certain percentage of the cost of installing their system from their federal taxes. In 2020, that percentage was 26, and was set to drop to 22 percent in 2021, and then disappear entirely in 2022.
The relief bill extends the ITC for two years, at the rate it was in 2020. That means that for 2021 and 2022, the ITC stands strong at 26 percent. This is great news for those saving up to go solar!
Other Solar Incentives
The ITC is a great deal on its own, but when combined with other state-specific solar incentives, homeowners can save big when making the switch to solar energy. Some even qualify for $0 down installation! Explore local solar incentives and rebates today.
If you live in an area that allows net metering, you can even get credit for the energy your system produces. In many cases, solar panels produce an excess of energy. Should net metering apply to you, you get credit for the excess energy your system adds to the electric grid. You can then use those credits when you need to pull from the grid, like after the sun goes down.
Why Solar Panels?
Solar power offers numerous benefits for homeowners, including:
- Increasing home's value
- Enhancing quality of life
- Lowering carbon footprint
- Reducing electricity bills
In the end, what does the decision to install solar panels usually come down to? Money. If you're like millions of Americans dealing the fallout from the covid pandemic, money was tight in 2020 and still is. This tax credit extension gives homeowners the time they need to get their financial health back on track and set money aside for a renewable energy system.
When it does come time to browse local solar installers, EnergyBillCruncher makes it easy to do so. With help from the numerous incentives, rebates, and tax credits that are available, making the switch to solar power is more affordable than ever. Plus, solar panels have a short payback period, making them a smart investment.
Ample Time to Go Solar the Right Way
When it comes to any investment, let alone one that will be attached to the roof of your home, you want to make sure you're choosing a reputable company that will get the job done right the first time around.
The dropping ITC had homeowners scrambling, leaving them at the mercy of providers' schedules, but now the pressure is off! You can take your time, carefully compare different solar companies, and handpick a provider who offers competitive rates.
Use EnergyBillCruncher to connect with installers whenever you're ready. Our free-to-use platform comes with no obligations to choose an installer or opt for solar panels. Instead, it helps homeowners discover reputable solar companies while providing a wealth of solar information.
Find your installer and make use of the 26 percent ITC in 2021!