Renewable energy tax credit to continue, helping offset new solar panel costs

Making an investment in a solar system can be a big decision.  There are several motivating factors that can contribute to such a decision like saving on your electricity bill, less dependence on foreign energy sources, and the reduction of our carbon footprint.  Going solar in California continues to gain popularity.  Sunny California is a leader in rooftop solar energy production and will continue to be, that’s why it’s no surprise that tax credits offered by the Federal Government will continue to be a lifeline option for homeowners looking to save money while installing solar panels.

Recently, the federal relief available in the form of a tax credit was extended, helping homeowners and businesses pay for what could be a big investment!

During the latest round of federal Investment Tax Credits, the step down of credits was delayed.  Instead of expiring at the end of 2020, the 26% solar tax credit will renew in 2021 and remain in place through 2022. After 2022, the tax credit will then drop to 22% in 2023.

Essentially, when you purchase a solar energy system for your home, you can deduct 26% of the cost of your new system off this year’s federal taxes. Installation must begin prior to December 31, 2021, to get the full 26% rebate this year. 

Since the Solar Investment Tax Credit (ITC) was enacted, solar growth has grown by 52% annually.  The number of people supported by jobs through solar energy has skyrocketed.  Thanks to the ITC, the U.S. solar industry has grown by more than 10,000%, - creating hundreds of thousands of jobs and investing billions of dollars in the U.S. economy in the process. 

The U.S.Bureau of Labor Statistics says as the need for solar power expands there will be a growing need for more construction workers to build power plants, solar photovoltaic installers to install solar panels, and so on. 

The SEIA (Solar Energies Industries Association) has advocated for multiple extensions of this critical tax credit, including the most recent delay of the credit phase down in December 2020. 

For more information about the step-down of this deduction click here. 

If you are interested in learning more about installing solar panels and creating the best financing plan for your budget, contact Cosmic Solar and Roofing today.  We are experts in our field and provide excellence in customer service while installing solar systems.

Call us at 760-239-0969 or request a free evaluation.