The investment tax credit (ITC), which is also known as the federal solar tax credit, gives you the ability to deduct a percentage of the cost of installing a solar energy system. In 2020, the current amount that you can deduct with your federal solar tax deduction is 26%. Fortunately, the investment tax credit gives residential and commercial customers the ability to take advantage of this solar energy credit. Solely based on the ITC, on average a solar energy system owner saves $9,000 on the cost of going solar.
How Can You Take Advantage Of The Solar Federal Tax Credit?
You can take advantage of the solar federal tax credit if you own your own solar energy system. Keep in mind, if you signed a lease or PPA with a solar installer, you are not eligible to receive the tax credit.
How Can I Claim The Investment Solar Tax Credit?
When you file your federal tax return, you can also claim the investment solar tax credit. It is important to inform your accountant that you’ve decided to go solar!
If you are interested in seeing the cost of solar in California, you should contact your local solar energy experts today. The solar energy credit is slowly decreasing every year, and evaluating your options as soon as possible is the best choice for both residential and commercial customers.
Choosing to go solar means you’ll be using less energy from your local utility company, which means you’ll be saving big when it comes to your energy bill. Of course, the most obvious reason for going solar is it’s better for the environment because of the reduction of fossil fuels. Interestingly enough, if you don’t use all the solar energy your solar panels produce, you can even sell back the excess energy and earn money by going solar!
What does going solar mean for business owners?
For business owners, going solar in 2020 means a lot! As a business owner, you can reap the solar benefits by completely cut the cost of operation and lower your energy bill significantly. Businesses in California are looking for more efficient and sustainable ways to cut costs, and going solar has been one of the most popular solutions. The funds you use for your electricity bill can then be invested back into your business in other ways.
The solar federal tax credit won’t be available too much longer, and it’s important to check if your home or business qualifies before this solar energy credit disappears. Sunlogix Energy, your local solar installers, strive to educate clients on renewable energy to help them define their goals, analyze solar options and make the best decisions. While California does receive a substantial amount of sunlight, we want to harness it and build a brighter future.
