UPDATE AUGUST 2022:
Great news for homeowners and businesses alike: the Federal Tax Credit has been increased to 30% through the end of 2030 under the Inflation Reduction Act (IRA). Read more about the changes under the IRA for homeowners, businesses, and schools!
Solar power is an increasingly viable option for consumers – and this is due, no small part, to the solar federal investment tax credit, which currently covers a staggering 30% of the cost of installing solar panels. Add this to the amazing long-term returns solar power has to offer (not least insulating you from the crazy volatility of oil and gas prices!) and these panels virtually do pay for themselves. But are you making the most of the savings available?
What Is the Solar Federal Investment Credit and What Does It Mean For You?
Anyone installing a solar PV system in their home or second home can claim this 30% solar tax credit – a significant discount on your tax bill! You are still eligible for the solar federal investment tax credit if you rent your home but own the solar PV system – and if you paid for it through financing, that’s fine too! In fact, when paired with other financing and solar incentives, we’ve helped customers lower the cost of their installations by up to 50%! The solar tax credit can even apply to an off-site community solar project, and we have great news for you guys – Minnesota’s community solar program is officially the best! But how much can you actually save?
How Much Is The Federal Tax Credit For Solar Panels?
The 30% tax credit is a dollar-for-dollar reduction on the income tax you pay – meaning you’ll effectively get back over a quarter of the cost of your solar panel installation in a tax refund. If you are considering installing solar panels, the time to act is now – as a leading solar panel company in Minnesota, Cedar Creek Energy will be happy to talk you through the process!
Can You Claim the Solar Tax Credit Twice?
If you are lucky enough to own two homes, then the answer is yes – you can install a whole new solar panel system in another home and claim the solar tax credit a second time. As a general rule, it’s a one solar tax credit per home rule, though, as with a lot of tax rules, it’s a little more complicated than it sounds! In cases where you can’t claim the actual tax credit twice, what you can do is roll over any leftover solar federal investment tax credits to a later year. This means that if you are on a lower income and paying less tax, you can reclaim the full 30% solar panel tax credit but stagger it over up to a maximum of five years.
Solar federal investment tax credits have incredible money-saving potential, particularly combined with the many incentives and rebates available for solar power here in Minnesota. As a specialist solar panel company in Minnesota, Cedar Creek Energy is here for you, to talk through all the incredible savings available, and work out the best and most financially rewarding solar PV system option for you!