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Disclaimer: This page references tax credits and/or other financial incentives as we understood them at the time of its original publishing. Contact us to inquire about such incentives applicable to your purchase today.
Solar energy use is rising across the U.S., becoming a popular way to reduce your carbon footprint, utilize renewable energy, and save on bills; you can even get a credit to claim on your taxes for installing a solar system in your home.
Keep reading to learn more about the solar investment tax credit incentive, how it changed throughout 2022, and how these tax credits can help increase solar use and installation across the U.S.
The federal government initially implemented the solar investment tax credit incentive in 2006. The incentive encourages homeowners and entities to install solar photovoltaic (PV) systems and use solar power for home and commercial energy needs.
The solar tax credit allows people to claim part of the installation cost on their taxes at the end of the calendar year. This investment tax credit has helped grow the solar industry over 200 times what it was before the tax credit was introduced.
A few developments have been made to the tax credit throughout 2022. In August 2022, a law was passed raising the tax credit to a 30% credit for systems installed between 2022-2032.
In previous years, people would be eligible for a 26% tax credit. This increase helps further boost solar use in the U.S. by giving people a higher credit when they have a solar PV system installed.
The investment tax credit has also been expanded to include energy storage devices with 3-kilowatt hours capacity or more. These solar battery backup systems can easily be paired with solar energy collection systems and are eligible for tax credit incentives.
President Biden also signed the Inflation Reduction Act into law in 2022. This law allows direct payment options rather than tax credits for non-taxable entities that install solar PV systems; this expands the range of people and groups eligible for incentives related to solar installation and other clean energy efforts.
Tax credits are a great way to encourage people to implement solar energy in their lives. Using solar energy helps the environment by emitting fewer toxic chemicals into the atmosphere.
Solar panels have about 20 times less carbon footprint than traditional coal energy sources. However, for some people, solar energy can be expensive. A 30% tax credit helps make solar energy more affordable and attainable for more households.
Solar power is a great investment for many reasons. It is more environmentally sustainable and helps create a healthier planet for everyone. Plus, you can now get a 30% tax credit when installing a solar system at your home or business!
We can help you start using solar energy today. Our Houston solar installers offer professional installation. We’re proud to be one of the best solar companies in Texas.
Contact us to get started today!
Formosa Plastics is a major producer of polyethylene, polypropylene, and polyvinyl chloride resins, which are widely used in various industries worldwide. Recognizing its role in environmental stewardship, Formosa Plastics sought to collaborate with a reputable sustainability consultant who can provide solutions to reduce its impact on the environment.
Sunshine Renewable Solutions is a leading sustainability consulting firm that specializes in renewable energy and environmental sustainability. The company has a team of experts who help clients identify opportunities to reduce energy consumption, lower greenhouse gas emissions, and implement sustainable practices through solar power.
