Solar Panel Tax Credits – Just the Facts
Much thought and research must go into knowing if powering your home or business with solar panels is right for you. Understanding all costs involved is a critical factor. One consideration that will need to be explored on the financial side are solar panel tax credits. There are federal and state tax credits that you can take advantage of when installing solar panels on your home or business.
First, let’s start with the federal tax credit. The investment tax credit (ITC) is the federal tax credit for solar panels. This tax credit allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes. The ITC will apply to residences and commercial properties that own their solar energy system. If you are considering leasing your solar panels, you will not be eligible for this tax credit.
Here is the timetable the federal government has laid out for tax credits:
- 2020 – 26% of the cost of the solar system for owners of new residential and commercial properties.
- 2021 – 22% of the cost of the solar system for owners of new residential and commercial properties.
- 2022 and beyond – 10% of the cost of the solar system for owners of commercial properties. There will be no federal tax credits for residential.
In addition to the federal tax credits, Texas also offers tax exemptions you can take advantage of when installing solar panels. Owning a home in Texas will allow you to apply a property tax exemption for your home solar system. This state property tax exemption will exempt you from the property value increase by putting solar panels on your home. So, your property value will increase but you won’t pay taxes for that increase!
Energy companies in Texas offer different programs that will help you cover the cost of installing your solar panels. Here is a list of energy companies and their current programs they are offering if you choose Sunshine Renewable Solutions as your solar panel installer.
- Austin Energy – We are a registered contractor for Austin Energy. They offer a $2500 rebate for any solar installation. You have to take their online quiz and choose Sunshine Renewable Solutions as your installer to receive the rebate.
- CPS – We are registered contractors with CPS Energy that services the San Antonio region and surrounding areas. If you choose Sunshine Renewable Solutions as your installer, we can off a $1,875 rebate.
- Oncor– We are registered solar contractors for Oncor servicing the DFW area. They open up their rebate program in late January. This rebate runs out fast, so customers need to act. The rebate is fairly large, but it is not fixed, so contact us
- CoServ – We are registered solar panel installers thru CoServ servicing the north Dallas and usually the McKinney and Frisco areas. The have a tiered rebate system that maxes out at $3,100 for a 10kw system. Their new rebate program should open up in February for 2020.
- CenterPoint Energy – There are no rebates, but they provide net metering. Net metering allows you to sell back the energy your solar panels produced that you did not use in a given timeframe. This will help offset the cost of the solar panels.
Contact us today to review all of your savings options so you can enjoy the benefits of solar energy at your home or business.
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Deciding to invest in solar panels? This may seem like a big commitment. That’s’ why our Houston solar panels installers from Sunshine Renewable Solutions will be with you every step on the way. Whether you’re looking for solar panel tax credit from the federal government or solar panel tax benefits from Texas, we are sure you will find what you are looking for. With so many solar panel installers to choose from, you’re sure to find Sunshine Renewable Solutions customer reviews the best in Houston. Find more details on solar panel tax credits for your home or business by contacting us today. We look forward to helping you go solar!