By Marc Salata, Director of Marketing, Green Convergence
An important factor in making solar affordable for most homeowners is a federal incentive called the ITC, and it’s shrinking. The Investment Tax Credit (ITC) is currently a 26% federal tax credit benefit that lowers the tax liability for homeowners and businesses who go solar.
In short, the year after the solar system is installed, a homeowner will get 26% of the cost of the system deducted from what they owe the IRS. That means more than a quarter of the price of the system goes away.
But this tax incentive is stepping down. It was 30% last year, and will drop to 22% in 2021, before going away entirely the following year. Commercial clients will be eligible for a 10% ITC in 2023 and beyond, but residential clients have this year and next year to take advantage of this tax credit before it goes away.
This is all great news, because let’s face it: No one ever complained about fewer taxes. Homeowners or business-owners interested in solar need to understand that the clock is ticking. To qualify for the 26% ITC, the system needs to be installed by December 31. There is sure to be a mad rush for area installers toward the end of the year, and many companies may be sold to full installation capacity as early as August. That means it’s time to look for a solar installer now.
Signing up for solar now, means that the installer — like local solar experts SunPower by Green Convergence — can be working on design, permitting and installation to get the solar system running before the summer heat brings high bills. It also assures the homeowner or business that the system is in place for the 26% ITC.
SunPower by Green Convergence can analyze roof type, utility usage and other factors to customize a system that’s right for the homeowner or business. With 30 years of roofing and electrical experience, Green Convergence is also uniquely equipped to handle special roof types, like clay tile, flat and metal. They also work well with HOAs and specialize in aesthetically pleasing installs. Hey can move roof pipes, run electrical conduit through the attic, and take other measures to make sure the home stays looking great.
Whatever their motivation — saving money, protecting the environment, increasing home value — homeowners have a special reason to make this the year they go solar.
Visit GreenConvergence.com for more information. ν