With the arrival of fall, this means we are in the final stretch of 2019. For many, this year’s end is just another notch on a long timeline of homeownership. However, for homeowners that are considering installing solar panels on their roof or property, the end of 2019 also marks the end of the MAX federal tax savings they can see from their solar installation before these savings start to decline. Here’s what you should know about taking advantage of the solar tax savings before the end of 2019, and how you can make your path to installing solar as smooth as possible.
The Solar Investment Tax Credit Starts to Say “Goodbye”
This federal tax savings program, also referred to as the Federal Solar Tax Credit, allows for energy conscious and environmentally-minded homeowners who purchase their own solar energy system to take a 30% tax credit of their total solar installation costs from their federal tax liability. One unique perk of this federal tax credit is that if your credit covers more than what you owe on your federal taxes, you can save the remainder and use it the next year.
Back in 2015, legislation was passed to extend the full savings value of the Federal Investment Tax Credit through 2019. In 2020 however, the tax credit incentive drops to 26%. Then in 2021, it drops further to 22%, before it is completely eliminated for residential systems starting January 1st, 2022. (However, for commercial systems, this will remain at 10% from 2022 onwards). So what kind of tax savings would you be missing out on if you wait until next year to install solar panels on your home? Let’s use a solar installation cost of$25,000:
Federal solar tax deduction in 2019 (30%): You save $7,500
Federal solar tax deduction in 2020 (26%): You save $6,500
Federal solar tax deduction in 2021 (22%): You save $5,500
As you can see, for each year you wait to schedule your installation, the solar savings drop by a full $1,000!
Beat the Year End Rush
At CAM Solar, we see it year in and year out: procrastinating homeowners that wait to schedule their installation until the very end of the year so they can save cash in on the tax savings. This can lead to a scheduling bottleneck and tighter installation and permitting timelines that could reduce the chances that your solar installation will actually begin before the year's end. In order to qualify for the full Federal Solar Tax Credit, your system must be installed and in service before the end of 2019. So, if you schedule your free solar evaluation in December of this year but the installation isn’t scheduled until January of 2020, you will miss out on potentially thousands in savings! Schedule your installation now, and gain peace of mind that your custom designed and installed solar panels will be officially underway before the ball drops in Times Square.
Combining Tax Savings with State & Utility Incentives
You already know that generating your own renewable energy at home can make a big impact on your electricity bill, and will even increase the value of your home. What many homeowners don't realize though, is that there are many other ways to put your solar panels to work, providing you with clean energy while saving you money for decades.
Whether you live in San Antonio, Austin or Rio Grande Valley TX, or you’re in Denver, Aurora, Colorado Springs, or Pueblo, CO, there are state, local and federal solar incentives waiting for you. At CAM Solar, we make it our everyday job to stay up-to-date on these programs, so we can assist you in qualifying for the following savings programs:
Net metering (both TX and CO)
CPS Energy Solar Rebate Incentive Program (San Antonio)
Austin Energy Residential Solar Energy Program
Xcel Solar*Rewards® Program
Colorado Springs Utilities Renewable Energy Rebates
Fort Collins Utilities Solar Rebates
Navigating the paperwork from your utility company and filling out the right forms can be an intimidating process — which is why at CAM Solar we remain by your side every step of the way. We’ll even fill out some of the paperwork for you! Maximizing your solar savings is our top priority.
Go CAM Solar!
At CAM Solar, we know a thing or two about the process of installing solar panels. We’ve been in the solar industry since 1990, and we have watched as electricity rates rise while the price of solar panels drops. If you are considering going solar, trust an experienced and local solar installation contractor like CAM Solar. We will work tirelessly to ensure your custom designed and installed solar electric system will reduce your carbon footprint, and keep you from paying unpredictable energy prices for decades to come — all while reducing the cost of installation through the solar tax credit and local incentive programs!