There may never really be a “bad” time to start reducing your energy costs and your carbon footprint through solar installation—but being the solar experts in Colorado and Texas, our team here at CAM Solar wants you to know that in the coming years, the cost of solar installation is going to look a little different.
Here is what you need to know about installing solar on the roof or property of your home in Denver, Pueblo, Aurora, and Colorado Springs, Colorado, or San Antonio, Austin, Laredo, or the Rio Grande Valley in Texas.
The Federal Solar Tax Credit Is Coming to an End… But Not Yet!
If this isn’t your first go-around when it comes to studying up on how you can save on the cost of solar, you may have heard about the federal solar tax credit, called the Investment Tax Credit (or the ITC). This has been a dynamic financial incentive that went into effect in 2005 and was extended in 2015 when the end of the federal ITC was also outlined.
In its prime, the federal ITC allowed homeowners to reduce their taxes by an amount equal to 30% of their solar installation costs. But as we wrote about last year, that credit percentage dropped to 26% in 2020. It was set to drop even further to 22% in 2021, with the tax credit expiring altogether on January 1st of 2022.
But 2020 has finally brought some good news: the federal ITC has been extended once again! Homeowners now have the opportunity to claim a federal solar tax credit of 26% of their installation costs until the end of 2022. In 2023, that number will drop to 22%, and the federal ITC will be eliminated in 2024 but remain at 10% for commercial solar installations, so you should act now if you want to take advantage of maximum savings.
State Solar Power Financial Incentives
It’s not just the federal incentives that make going solar a smart investment, but states are picking up steam when it comes to incentivising solar installation. Here is what you need to know about going solar in both Texas and Colorado:
Utility companies throughout Texas are rewarding solar customers with rebates and net metering programs. These state incentives are as follows:
CPS Energy and Austin Energy are offering rebates of up to $2,500 off the cost of installation, and per-watt rebates for commercial solar installations.
AEP Texas customers can receive a fixed incentive ranging from $1,500 to $3,000 based on system size, and commercial per-watt rebates are based on a $0.50/watt or $0.25/kW tiered system.
Net metering is still available for Texas solar customers if their utility offers it, allowing you to receive an energy bill credit for any excess electricity that your solar panels produce that is not used in your home. This extra energy is sent back to the grid, for use in other homes to reduce demand for non-renewable electricity.
Utility companies throughout Colorado are rewarding solar customers with rebates and net metering programs. These state incentives are as follows:
Fort Collins Utility customers can cash in on a rebate up to $1,500 on the cost of solar installation.
Net metering is also available throughout Colorado, allowing homeowners to receive a credit for any of their excess renewable energy
Secure Your Own Electricity Generation for “After 2020”
We have all had to make adjustments this last year, and not all of those changes will be going away after the pandemic settles into a new normal. Are you working from home? Are you teaching from home? Are your home and your family more vulnerable to the harmful effects of an unexpected power outage? CAM Solar can help you take the energy you use at home into your own hands.
If you need a little insight into taking advantage of the solar panel federal tax credit in 2021, the local rebates and tax incentives available in your state, how to keep your lights on during an outage with solar battery solutions like Tesla Powerwall, or how to optimize your solar energy usage with smart energy monitoring, CAM Solar is standing by and ready to answer your questions. It all starts with a simple, free solar quote!