Federal tax credits for the installation of solar power equipment remain in effect, and there is significant money to be saved.
This guide to the Federal solar investment tax credits gives you what, how, and how much can be saved when you install solar electric panels or BiPV solar tiles aka solar photovoltaics or a solar hot water system on your residence. Saving money at tax time has never been easier – and this is a very good time to consider going solar.
What is the Federal Solar Investment Tax Credit?
Since Congress passed the Energy Policy Act of 2005, the Residential Renewable Energy Tax Credit has allowed homeowners to deduct a percentage of the installed cost of a solar PV system for their home. It was originally set to expire after 2007, but has since been extended several times. The current expiration date is December 31, 2023. Will it be extended again? Probably, but it’s a risk to wait.
If you are one of the many homeowners considering the installation of solar panels on your home’s rooftop, then undoubtedly one of the burning questions on your mind is whether the pros of solar energy outweigh the cons when it comes to residential solar powers systems for homes.
Let’s examine the main benefits and drawbacks of solar energy systems to help you make a well-informed decision:
All photovoltaic solar power systems, whether you go with the traditional PV panels, BIPV solar shingles and tiles, or thin-film solar laminates, are installed to face the sun, and then connected to an inverter by a licensed electrician during the installation, so the Direct Current (DC) electricity generated by the photo-voltaic cells can be converted to the Alternating Current (AC) to be used domestically or sold back to the local power grid.
Did you know? You can sell excess solar-generated electricity back to the grid.
Did you know? Many local electric utilities are often required by local laws to buy your excess electricity at pre-set rates.
You might also qualify for tax credit benefits at the end of the year for the installation of a PV solar power system. Be sure to check your state’s and federal rebates and talk to your tax accountant to see if this might be a worthwhile pursuit for you.
Solar power systems use photovoltaic cells to generate clean, renewable electricity from the abundant solar rays. — Currently, there are three main types of PV solar systems available to homeowners.
New Shingle Roof
$7,500 Average price
New Metal Roof
$14,500 Average price
New Flat Roof
$8,225 Average price
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Crystalline PV Solar Panels are based on solar cells made from silicone and placed inside a panel designed to contain many individual solar cells.
PV panels are the most common and recognizable type of solar power systems installed on the residential roofs today by companies in the likes of Tesla Solar (Formerly, SolarCity, which was the most well-known and priciest of all the solar power providers. — Notably, the price had nothing to do with the quality of the product or service, but rather it was the result of the aggressive approach to sales — knocking on doors and using high-pressure sales tactics to get you to sing the contract.