Author: PremierWeb

Upgrading to Solar? The IRS is here to Help

If you’re considering upgrading to Solar, believe it or not, the IRS is here to help.

The U.S. has seen some of the most impressive growth in solar installations in the world, many with our team here at Sun Services USA. We’ve helped thousands of homeowners reap the benefits—tax incentives & otherwise—of upgrading to solar power. It’s easy with Sun Service’s cost-effective solar programs.

How the solar tax credit works

As long as you own your solar energy system, you are eligible for the solar investment tax credit. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “rollover” the remaining credits into future years for as long as the tax credit is in effect.

How do I claim the federal solar tax credit?

You claim the investment tax credit for solar when you file your yearly federal tax return. Remember to let your accountant know you’ve gone solar in the past year, or if you file your own taxes, reach out with one of our accredited agents on how to claim the solar ITC.

The history of the federal solar investment tax credit

The ITC was originally established by the Energy Policy Act of 2005 and was set to expire at the end of 2007. Thanks to the popularity of the ITC, and its success in supporting the United States’ transition to a renewable energy economy, Congress has extended its expiration date multiple times, including most recently in December 2020 to extend the ITC at 26 percent for two additional years. Now, the solar investment tax credit is available to homeowners in some form through 2021. Here are the specifics:

  • 2016 – 2019: The tax credit remains at 30 percent of the cost of the system.
  • 2020-2022: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.
  • 2023: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
  • 2024: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.

Start your solar journey today with Sun Services USA.

We’ve worked hard to become a dominant solar provider that’s trusted by both homeowners and other solar companies and consultants. We will never take this trust for granted, and we will work hard every day to keep it.

We live our values, without exception, standing behind our promise regardless of cost, and we look forward to helping you embark on your journey to a sustainable & cost-effective future with solar power.

Get More Independence from the Grid with a Solar Battery

Installing rooftop solar for your home can offer you energy that’s clean, renewable, and in most cases more affordable than your current monthly electric bill. Going solar with rooftop solar panels is also flexible, allowing you to install as much or as little as you need to power all or part of your home. Adding to that flexibility is solar battery storage. A solar battery will allow you to store excess solar energy generated throughout the day so you can use it whenever you need it.

Battery Storage Protects Against Grid Outages

Battery storage means you don’t need the sun to shine to turn the lights on. If there’s an outage from the grid due to equipment failure or weather, you won’t be affected. Any excess solar energy your system generates but your home can’t use right away is stored in your solar batteries so you can use it anytime you need, including during a grid outage.

Battery Storage Can Even Earn You Money

With net metering, you can actually store energy that you sell back to the grid at peak hours. This system allows solar energy generated by homeowners to help reduce the strain on the traditional electric grid. This allows the electric companies to improve reliability for customers, and for that, you are paid per kilowatt-hour generated. Homes with solar battery storage can generate and sell back even more than those without. Net metering often shows up as a credit on your electric bill from the utility.

The Best Solar Battery Options

Some of the top battery providers are Enphase Energy and Tesla. Enphase is offering the latest Encharge battery as fierce competition in the market for its safety, flexibility, and reliability. Adding any solar battery solution to your system will help you reduce your dependence on the grid and help you keep the lights on, rain or shine.

2 More Years of Savings: Solar Tax Credit Updates for 2021-2022

Great news for 2021—late last year, the Solar Investment Tax Credit (ITC) was extended two more years at a rate of 26%. The countdown has begun to get the most out of this federal incentive before it drops. The Solar Investment Tax Credit (ITC) allows new solar installations to take a 26% tax credit of the total cost of your solar energy system on your taxes, reducing the overall cost of your solar energy system.

Getting the Maximum Tax Credit for Your Solar

There’s just one way to qualify for the ITC at today’s max rate of 26%—buy and install your solar energy system in 2021-2022. This declining credit program will only reduce your potential savings if you wait too long to take advantage of this maximum allowance.

Starting Construction on Your Solar System

The update to the ITC extending the max credit for two years means that homeowners and business owners who install solar in any capacity AND begin construction before the end of 2022 can continue to benefit the rate of 26%. The rate falls to 22% in 2023, and lastly, the residential rate will decrease all the way to 0% in 2024, while commercial and utility markets will remain permanently at 10%.

What impact can the solar tax credit have on your costs of going solar? It’s possible to see as much as $9,000 or more. This applies to both homes and businesses looking to install solar in the United States.

ITC for More Than Primary Residence

Your solar installation does not have to be on your primary residence to apply for the tax credit. If you live there at least for part of the year and are the listed owner, you are able to claim the solar tax credit.

What Makes Some Ineligible for the ITC?

If you rent any part of your solar energy system, this limited-time federal tax credit is not available to you. In order to benefit the ITC, you must own your system. This can be via a loan or other financing, but the equipment must be yours.

The ITC Makes Solar More Affordable

These changes to the ITC are a big signal to get going soon on your solar installation. Keeping your costs down can help you pay off your system faster so that every watt you generate goes right in your pocket.