Your neighbors are going solar left and right! What’s the deal?
In an effort to encourage Americans to use solar power, the U.S. government offers tax credits for solar-powered systems. The Solar Investment Tax Credit (ITC) is a 26 percent tax credit for solar systems on residential and commercial properties. The ITC is one of the most important federal policy mechanisms to support the growth of solar energy in the United States. Since the ITC was enacted in 2006, 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.
When the ITC first passed, the value of the credit was at 30 percent in 2005, but it fell to 26 percent in 2020. The latest extension of the solar tax credit came last December, and it gives homeowners and businesses up to a 26 percent credit on the net cost of a solar system. The 26 percent credit is in effect for two more years before it drops to 22 percent in 2023 and fades out altogether for homeowners in 2024. The credit for businesses follows a similar path, with the exception being that its credit falls to 10 percent in 2024 and will stay at that number in future years.
Unfortunately many states and power companies didn’t adopt the Net Metering Program right away, giving homeowners a limited amount of time to reap the benefits of residential solar and the ITC in their area. While net metering has been allowed in the state of Florida since 2008, your power company might not have integrated it until fairly recently, which is probably why it’s news to you!
How do I claim the ITC?
The first step of taking advantage of the ITC will be getting solar on your roof! Flo Energy is a local solar dealer in the Tampa Bay Area, and works alongside Element Renewables Group to manage and install your solar project from start to finish. Going solar used to be a big project for homeowners to take on. Most people don’t have the time or resources readily available to retrieve panels, pull permits, find contractors certified install their solar system, and get their system turned on, all on their own. We want you to take advantage of the ITC before time runs out! Flo makes it possible for you to choose to go solar in a simple Energy Consultation, while we do all the dirty work to get the glass on your roof and start saving you money.
For more information on how the ITC can apply to you, check out these resources:
PDF Download – U.S. Department of Energy – Homeowner’s Guide to Federal Tax Credit for Solar Photovoltaics
Article – U.S. Department of Energy – Homeowner’s Guide to Federal Tax Credit for Solar Photovoltaics
Article – Duke Energy – How to Calculate the New Federal Solar Tax Credit in 2021