This year’s tax season is over,but like all seasons,the next is just around the corner.
Fortunately, home and business owners who go solar receive a federal tax credit. If your solar installation is completed by December 31, 2022, you become eligible. The credit is worth 26% of the total cost for your solar power system installation. However, in 2023, the credit drops to 22%.there’s no maximum credit,either.the more you spend,the bigger your credit.
The federal tax credit expires for homeowners at the start of 2024. Solar installations for small businesses continue at just 10% until the start of 2025. The US government has not announced if it plans to extend the credit, so this may be your last chance for 26% savings off your solar installation.
Some states and power companies offer additional kickbacks for switching to solar. These perks include performance-based incentives (PBIs) and solar renewable energy certificates (SRECs). Basically, PBIs and SRECs give you credits on your electricity bill, or even pay you cash, for generating solar power. PBIs and SRECs often come with strings attached, such as installing special monitoring devices (PBIs) or selling your credits at a specific marketplace (SRECs).
If you’re still a little confused regarding PBIs or SRECs, please contact us at Renewable Grid. We’ll be happy to explain how these work for you.
Individual states, counties, cities, and utility companies may offer extra incentives for going solar. In some areas, you can get paid to collect solar energy. But as it goes with the federal tax credit, these local incentives may disappear soon. Learn more by clicking here.
Save on solar installation by scheduling an appointment with Renewable Grid today.