Solar energy is the best way to harness renewable energy and convert it for use in your home. An estimated 8 percent of homeowners in the United States have invested in solar panels for residential purposes. Installing solar panels for your home is a fantastic way to use green energy to reduce your solar footprint.
The most significant hold-up for many homeowners is the cost associated with installing solar panels. One of the top ways to reduce your costs is by using solar tax incentives to lower the price.
The good news is that you’ve come to this helpful guide to learn about the available solar tax credits and how to access them. Continue reading to start saving money on solar power today!
What Is the Federal Solar Tax Credit?
When you install solar panels on your home, you qualify for a tax break or credit through the federal government. The credit covers your expenses related to necessary equipment and installation for your solar panels.
Your tax credit will not cover the structural work necessary to install and secure the panels in your yard or your home’s roof. You can combine the federal tax credit with your state’s incentive program to maximize your savings.
How Do Solar Tax Incentives Work?
The solar tax credit for 2024 covers 30 percent of your eligible costs when installing solar panels for your house. Homeowners can count on the 30 percent discount through 2032, at which point the tax credit drops to 26 percent.
It’s worth noting that the tax credit is nonrefundable. Your solar credit will help to decrease your tax burden, but the IRS will not cut your check for the difference if the credit takes your taxes from negative to positive numbers.
The purpose of the credit is to reduce your tax bill to zero. It’s a powerful resource you can use to convert your home to clean and renewable energy.
How Do You Qualify for Solar Tax Incentives?
Only some solar installation projects qualify for the tax incentives offered by the federal and state governments. Here’s a look at some rough guidelines to follow if you want to use solar tax incentives to reduce costs for your household’s energy needs.
Project Must Upgrade Your Home
The tax credit applies to your situation if you install solar panels at a residence you’ve lived at for at least one year. The categories include homes, houseboats, mobile homes, apartments, and manufactured homes. It’s an excellent way to go solar in Kansas City with Blue Raven Solar.
Own the System
Another qualification you must meet with your solar panels is ownership. You’re not eligible for the tax incentives if you’re leasing the panels for your electrical needs. The federal tax credit program does not cover the costs associated with a leased system.
Must Start After 2017
Your solar installation will not qualify for solar tax incentives if you began installing solar technology at your home before 2017. You won’t receive assistance through your taxes for a renewable energy program before the government passes the incentive.
Benefits of Installing Solar Panels
You’ll find several benefits that make a solar installation an excellent investment for your household. Exploring these benefits will help you find the best deal and schedule an installation with a reputable solar company. Here’s a deeper dive into the benefits you’ll gain with solar panels at your home.
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Affordability
Solar panels are becoming more affordable, making them easier to access for most homeowners. With the solar tax incentives applied, solar panels are much cheaper than ten years ago. Prices are expected to continue dropping as the technology becomes more straightforward to produce.
You’ll also enjoy access to financing programs to make your conversion to green energy more straightforward and affordable. The amount owed on financed solar panels is often lower than a monthly electric bill.
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Cost Savings
Energy bills are increasing, and you could face staggering electric bills that change without apparent reason. Sticking to the power grid will put you in a precarious situation with your electric company. You’re at the mercy of what they want to charge for their services.
Installing solar power for your home provides freedom from these rising costs. You’ll reduce your reliance on the grid for your power needs and save money each month.
Measure your family’s electricity for three or four months before your solar panel consultation. You’ll know how much power your family uses and design a solar panel to eliminate your electric bill. If you produce a surplus of energy, you can sell it to the power company to generate passive income.
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Power During Outages
Power outages are also increasing in the United States. The ability to keep the lights, security systems, and appliances running when the grid goes down is invaluable. Your family will remain comfortable and safe as the lights go out around your neighborhood.
Combine your new solar panels with a solar battery for backup energy storage. You’ll enjoy peace of mind no matter what life throws at you.
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Increased Home Value
If you plan on moving in the future, solar panels are a fantastic investment. Potential homeowners will jump at the opportunity to buy a home with a solar installation. Shoppers are willing to pay a premium for solar power, and homes with solar panels spend less time on the market.
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Flexible Benefits
Your solar installation will work in several types of climates. You can count on your panels to collect sunlight and convert it into power for your family. Ensure your panels are placed at the optimal angle to capture the most sunlight.
Invest in Solar Panels Today
Upgrading your home with solar panels is an excellent way to save money and help the environment, and the solar tax incentives make it more affordable than ever. You can apply the incentive to the panels and necessary equipment used for your solar installation. You’ll increase your home’s value and save money on energy for your home with solar energy.
The best changes to a home will boost its curb appeal and market value. Read our Home and Real Estate guides to find upgrades and DIY projects for your house!
