Bringing in the new year brings good news! Effective January 1, 2021, Congress agreed to extend the Solar Investment Tax Credit (ITC). The passage of this federal package is excellent news for the solar industry because it extends the 26% Solar Investment Tax Credit for another two years. The Solar Investment Tax Credit is a federal income tax credit for residential and commercial solar energy systems in Minnesota and throughout the U.S. Over the last few months, folks have scrambled to install their solar panels before 2021, as the credit was initially intended to drop to 22%, but with this extension comes new hope for the growth of solar: accelerating the development of renewable energy across the U.S. by giving folks an incentive to switch.
The extension of the Solar Investment Tax Credit means that solar projects of all shapes and sizes – residential, commercial, industrial, utility-scale – will receive a 26% credit if they begin construction in 2021 or 2022. If you qualify for the Solar Investment Tax Credit, you’ll essentially receive a 26% tax credit applied to your year-end taxes. If your solar array costs $200,000, you will receive a $52,000 tax credit. Cedar Creek Energy clients have taken advantage of this opportunity, and with help from our financing experts, saved thousands!
Take Advantage of the Extended Solar Investment Tax Credit
So, if you’ve been dabbling with the idea of switching to solar, now is the time. The extension of the federal tax credit is part of a phase-out plan: starting in 2023, all markets will drop to a 22% tax credit while the residential market will drop to 0%. Homeowners will essentially be “phased-out” of the tax credit, while businesses will still be able to claim a 10% credit, which is expected to become permanent in 2024. Federal tax credits have had a large impact on the solar industry’s growth as a renewable energy source, and the extension will continue to provide this growth, but only for the next two years. Although there have been past attempts to include an investment credit for energy storage, nothing involving batteries was part of this spending package.
Our commitment to serving our Cedar Creek Energy clients means finding the best solar solutions for their needs. This means working with our team to find the financing and rebate resources that fit your project. The combination of hard work by our experts, with the extension of the Solar Investment Tax Credit, means a lot of money saved for our clients. Take The Wheelers, for example- they’re just one of the many residential homeowners who qualified for the federal tax credit on their residential solar project. The total cost of their project for their 15.2 Kw system went from $50,000 to $35,000. Not only did they receive a $15,000 tax credit, but they reduced their electric bill by 87%! They went from paying $3,000/year in electric bills to $300/year. Plus, they even made money by selling back excess energy. They made a switch they can feel good about, and so could you. Check out our other case studies to learn more about how our Cedar Creek Energy clients have put more in their pockets while reducing their carbon footprint.
Contact Cedar Creek Energy About the Solar Investment Tax Credit
So, if you’ve been looking for a sign to switch to solar, this is it. Get rolling on your investment so you can save big with the Solar Investment Tax Credit before it drops- there is no better time than now to go solar! And if you’re not sure if you qualify- contact us for your free solar energy assessment to learn more about how you could benefit from solar.