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Have you considered installing solar panels? A newly updated tax credit may make it more appealing
Since 2008, residential solar panels have become increasingly popular. It seems like energy and electricity costs go up every year, making solar panels a great investment if you own your home and plan to stay there a while.
As an added incentive, the tax credit for solar systems was scheduled to end in 2023 but was recently extended to 2033!
How Do Solar Panels Work?
Solar energy is a clean, renewable source of power that reduces reliance on fossil fuels and helps combat climate change. By installing solar panels, you can reduce your carbon footprint and do your part to protect the environment.
If you go solar, your home will use photovoltaic (PV) panels to convert sunlight into electricity. This means direct savings on your electricity bill as the inverter will store energy in batteries, powering your home.
On average, Americans save $1,500 a year on electricity costs with solar panels, although that number may vary based on your state’s sunshine.
So Why Doesn’t Everyone Install Them?
The biggest reason why people aren’t installing solar panels is the initial cost. Solar panels can cost anywhere from $13,000 to $25,000, depending on where you live. This seems like a hefty sum to pay upfront, especially because the savings can take years to break even on the costs.
However, the new 2023 tax credit allows Americans to deduct 30% of the cost of solar panels as a tax credit, which can greatly increase your savings. Solar panels often last 20 to 25 years; the majority of solar power owners break even between eight to nine years, so you’ll see significant savings on electricity for over 10 years!
Check out this free tool to see if you are eligible for solar systems and how you can find the cheapest rates possible.
Hot Tip: Solar has an expensive initial cost but can save you thousands of dollars over time. Plus, it’s good for the environment!
Additional Information About The Solar Tax Credit
Curious to see if you qualify for the Solar Tax Credit? Here are some qualifications you need to meet:
- The solar system is an original, new installed system.
- You purchased the system outright or took out a loan to finance.
- You aren’t borrowing the system.
If you meet these three requirements, you will be eligible to apply and receive the Solar Tax Credit. Of course, consult with a tax professional first to ensure that you can qualify before making decisions.
Bottom Line
If you own your home, want to invest in green energy systems while saving on electricity costs down the line, solar is for you.
Check out this free tool that gives you a quote for solar systems by zip code, you’ll want to find the best deal to maximize your savings!
