Solar Tax Credit – New Cost Savings in 2022!?

solar tax credit

New Solar Tax Credit for 2022

As time goes on, solar energy is becoming more popular and advantageous for homeowners. Technology is getting better, and production costs are decreasing. At the same time, efficiency and performance are increasing, meaning you can collect, store, and utilize more power with solar energy than ever before. 

But some homeowners they’re still waiting for more local and federal subsidies to be in place before installing solar on their property. 

However, the government is making it more affordable to implement solar energy systems in your home. The Inflation Reduction Act that was passed in August offers better solar tax credits and makes them available for years to come. Here’s what you need to know about the recent changes in solar tax credits during 2022.

Solar Tax Credit – The Inflation Reduction Act

President Joe Biden signed the Inflation Reduction Act on August 16, 2022; included were many production tax credits for clean energy sources like wind and solar

Before the Inflation Reduction Act was passed, citizens could claim a 26% credit on the initial cost of certain qualified energy systems; this included any that used alternate fuel sources like wind, solar, geothermal, biomass, or fuel cell power. That credit was set to decrease to 23% in 2023 and eventually expire in 2024.

The new bill causes the credit to increase to 30% and last for the duration of 2022 to 2032. After that, it will drop to 26% in 2033, 22% in 2034, and then expire in 2035. There is no dollar limit on the tax credit, so you’ll receive 30% off your solar system whether you spend $10,000 or $100,000. In the next section, we’ll go over what the tax credit covers.

Solar Tax Credit – What Does It Cover?

Any trusted local solar company will tell you that dozens of components make up a solar array installation, so here’s a breakdown of what the tax credit covers:

  • Solar photovoltaic panels
  • Contractor labor
  • Photovoltaic cells that can be used to power an attic fan
  • Fees and costs related to the solar system like permits, inspections, and development
  • Any equipment needed to make the solar system run, such as mounts, inverters, and wiring
  • Solar storage batteries (learn more about the best solar battery backup options)
  • Any sales taxes that you paid that are deemed eligible expenses

Solar Tax Credit – Other Changes

The tax credit no longer applies to other alternative energy appliances like water heaters and biomass furnaces. However, it does apply to solar panel battery storage units as long as the battery can store at least 3-kilowatt hours.

There are many more financial benefits to implementing solar panel technology as an energy source in your home. If you’re looking for Houston solar installers, contact us at Sunshine Renewable Solutions. We’re proud to be one of the best solar companies in Texas!

Call us at (832)280-8838 to learn about the recent solar tax credit or to get your free estimate today!     

Texas Plastic

Sunshine Renewable Solutions to Help Formosa Plastics of Point Comfort, Texas, Achieve Sustainability Goals

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.

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Sunshine Renewable Solutions proudly partners with a leading Texas-based plastic manufacturer, embarking on a groundbreaking initiative to fortify its commitment to sustainability.

By integrating solar energy solutions, we're revolutionizing their environmental impact. Our collaborative efforts aim to construct a robust solar infrastructure, harnessing renewable energy to power their operations efficiently.

Together, we're spearheading a transformative shift towards renewable practices, demonstrating how solar power can drive industrial progress while prioritizing environmental responsibility. Sunshine Renewable Solutions is honored to work hand-in-hand with this industry leader, fostering a brighter, greener future through the strategic implementation of solar energy solutions.

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Creating The Foundation

As the foundational step in our partnership, the construction of concrete piers for the solar panel structure marks a pivotal milestone in our solar energy initiative. These concrete piers serve as the bedrock of support for the entire solar infrastructure, providing stability and durability essential for the efficient functioning of the solar array.

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Precision And Accuracy Are Paramount

Our engineering team meticulously plans and designs the layout of the piers, ensuring they are strategically positioned to uphold the solar panel array's weight and withstand environmental factors such as wind and inclement weather. We adhere to industry standards and best practices to create a robust foundation that guarantees the longevity and resilience of the solar installation.

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A Solid Foundation

Environmental considerations are taken into account throughout the construction process, ensuring minimal disruption to the surrounding ecosystem. Our commitment to sustainability extends beyond energy production to encompass responsible construction practices.

By establishing these concrete piers foundations, we are ready to start Phase 2, erecting the metal support bars. Enabling the subsequent installation of solar panels will power the plastic manufacturer's operations while significantly reducing their carbon footprint.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

Slide
Follow The Build

Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

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