The Federal Tax Credit Extension – What Does It Mean for Solar Customers?
Since the implementation of the ITC (Investment Tax Credit) in 2006, the industry has taken off and resulted in thousands of solar companies across the United States. Installation businesses were able to provide Americans with a lower monthly electric bill and little to no upfront costs, and then those companies receive federal tax credits for owning the systems.
This resulted in an evolution of the way we buy our energy — generating more renewable energy resources that the majority population is able benefit from both financially and environmentally. It’s proven that renewables are effectively able to slow the effects of climate change, so it’s important that this majority of the world population is able to feasibly produce it.
The notion of “it literally pays to act now” applies to us in two ways:
- The tax credits that aid solar in growth starts declining by 2020
- Climate change is rapidly accelerating
Long story short, action cannot be delayed environmentally nor financially. Let's install the maximum amount of solar we can now to help slow climate change while helping as many people save money as we can.
- 2016 – 2019: Tax credit remains 30%
- 2020: Percentage dips to 26%
- 2021: Percentage dips to 22%
- 2022 onwards: Percentage dips to a permanent 10% for commercial credit for owning the system
If you’ve ever been on the fence to go solar, we can help you do your research and decide sooner than later if it’s right to you – after all, within 3 years it won’t be as easy for you to transition.