Why 2019 is the best time to save on solar!
The federal tax credit is reducing next year. Here’s what you need to know to save as much as possible on your solar installation.
What is the Federal Solar Tax Credit?
The Federal Solar Investment Tax Credit (ITC) has been a popular incentive to encourage homeowners and businesses to install a solar array. It’s easy to see why: with this credit you can save 30% off the total installation cost of your new solar system – that includes materials and installation!
Unfortunately, this tax credit is being gradually phased out for homeowners and significantly reduced for commercial customers.
Phasing Out the Tax Credit
From now until the end of 2019, the tax credit remains at 30%. In 2020, any solar installation will only be eligible to claim 26% of the installation costs as the tax credit. This rate further drops to 22% for installations in 2021. Finally, in 2022 the tax credit is completely eliminated for homeowners, while commercial projects can still enjoy a 10% federal tax credit.
What’s the Impact of the Solar Federal Tax Credit?
The scheduled decrease of the ITC means that 2019 is the best time to add solar to your home or business. If you have been on the fence about switching to solar, the difference between installing in 2019 and 2020 could be thousands of dollars – depending on the size of your array.
To lock in the 30% federal tax credit and save thousands on your new solar array, contact Earthlight today.