Solar Tax Credits For Installing Solar Panels In California.

 

 

 

Solar Tax Credits For Installing Solar Panels In California.

How great it is to get the solar panels installed in your home and let the government pay for it? You may not get solar panel for free, but the government has extended the tax incentives, that cut the cost of a residential solar power by 30%. Earlier this tax credit was $2000 for the residential solar installations. There are many other financial benefits that you can obtain with a solar system. Installing a solar system means you will not pay any bills to the electric company rather you are paying for your own solar powered electric plant and earn returns on your investment in 4-9 years of time.

If you live in California, you have a better chance of cutting the installation costs of solar panels because government offers a number of rebates and incentive programs. Here are few of the current incentive now being offered in California-

·         Tax Credit- The federal government offers 30% solar investment tax credit. You will get the tax credit not the tax deduction and with no cap per project.

·         Rebates- Presently, approx 20% rebate is given on the net cost of a residential solar system. The rebate for commercial or non-profit are even higher than this percentage. The rates drop with first come first basis, so if you keep delaying it may cost you more money in the form of lower rebate amount.

·         Financing- if you are thinking about solar power and you need financing, then the city and county of San Diego provide you the programs that offers financing too. This amounts covers the cost of installing a solar PV (photovoltaics) array that can be repaid over the 2o years of time.

The federal government is offering federal tax incentives for the purchase or installation of eligible solar systems, that includes, both solar photovoltaics (PV) and solar hot water (solar thermal) systems. These tax credits are also available for other renewable energy investments.

In 2008 the solar investment tax credit was extended through December 31, 2016, which included $18 billion in incentives for renewable energy and energy efficient improvements. According to solar ITC-

·         Federal investment tax credit is for residential as well as commercial eligible solar consumers.

·         To take the advantage of the tax credit the consumer must have a federal tax liability.

·         The federal ITC is one time credit and it is carried forward if not completely used in the installation tax year.

·         The eligible projects may take a grant in lieu of tax credits under section 1603.

·         If the system is installed with the use of a third party, then third party is eligible for tax credits and passing some savings to the host customer of the solar system.

If your monthly bill is over $200 every month, then now is the right time to get rid of the monthly bills and save more than the monthly costs of installing the system and pay it off within 10 years. The paperwork is easy if you seek a reputed solar installing company. The company will assist you in filling out the forms and the necessary formalities. 

Check for FAQ on Solar 2023 about rebate on the website Energy Sage