What Is the Investment Tax Credit for Solar Power?
by Kelly Anderson, on Dec 5, 2019 11:17:57 AM
The federal program could potentially help you offset solar panel cost
If you’re thinking about adding a solar system to your Rockford, IL property, you may be put off by the potential price tag. But thanks to a collection of state and federal incentives, it may be possible to offset the solar panel cost and effectively lower your monthly energy bill. One of the most important ones is the federal Investment Tax Credit (ITC). What is that, and how can you benefit from it? Find out here.
See Also: Build a Solar Panel System That Fits
What Is Investment Tax Credit?
The ITC is a federal incentive to help make going solar easier on homeowners and business owners. Currently, you can deduct 30 percent of the cost with no cap on the potential value. It’s designed to simplify the process of adding panels to your property so you can help contribute to renewable energy.
Initially established in 2005, ITC has been extremely popular among homeowners looking to switch to solar. Set to expire in 2007, the program was extended multiple times and is currently available to homeowners through 2021. However, homeowners need to invest now if they want to take full advantage of the current credit because the amount you can save will change at the start of 2020.
Homeowners must own their system and have sufficient tax liability to benefit from the program. You can claim the credit on your yearly federal tax return. If you are leasing a system, you’re not eligible for the program. To see if you can benefit, click here.
How Is Incentive Tax Credit Changing?
In the coming years, homeowners will see a reduction in the amount of credit they can earn. Here’s how it breaks down:
Through 2019, the credit will remain 30 percent. Starting in 2020, the credit lowers to 26 percent. In 2021, it’s 22 percent. And beyond 2022, it’s 10 percent.
With the various incentives, including the ITC and SREC, it’s possible that you can effectively lower your monthly expenditures when compared to your current electricity bill. But to take full advantage, you have to act sooner rather than later.
Work with Illinois’ Premium Solar Installer
Will solar benefit you? We’ll help you find out. At Summit Solar, our goal is to take you 100 percent solar. If we can’t do that, then we won’t pressure you into buying a system from us.
We believe solar should just make sense. If you're ready to work with Illinois' premier solar installer, give us a call at 864-250-0026 today!