For anyone who has been considering solar for their home, the clock is ticking if you’re looking to get the biggest return on your investment.
The federal solar investment tax credit associated with the installation of solar & storage on your home is going to be stepping down at the end of the 2019 year. Currently, anyone who completes a solar installation on their home before December 31, 2019, will receive 30% of the total amount invested back in the form of a federal tax credit.
For those who wait to complete their installation until 2020 will receive 4% less—26%.
If you install a system equating to $50,000, you will receive a $15,000 tax credit (30%) if installed in 2019. If you wait until 2020, your tax credit will equate to $13,000 (26%). That’s a $2,000 difference!
**This is only an example. System Costs vary depending on system size and equipment. This is not an average cost nor is it defined.
Another important aspect to consider is your eligibility to receive the tax credit if you elect to go with a $0 down financed purchase. When you choose to finance your solar, you will still receive the tax credit, and will get 30% back of the total amount financed.
Since financing rates can add to the total system cost due to interest and such, getting every bit of the tax credit is crucial.
In closing, the typical timeline from choosing your solar vendor to your PTO—Permission to Operate Date is about a 6-8-week timeline. As more and more people get in line to make the switch to solar before the end of the year, timelines for construction will extend.
Make sure to stay in contact with the solar companies you are considering for your residential project so you can ensure installation within your desired timeline, and ALWAYS make sure that the company you choose obtains a permit before construction commences!