Solar Tax Credit Extended Through 2023!
Outstanding federal tax credits and rebates for solar and battery.
Residential and Commercial - Federal Investment Tax Credit (ITC): In the United States, one of the most significant tax incentives for solar installations is the federal Investment Tax Credit. The Investment Tax Credit allows homeowners and businesses to deduct 30% of the cost of installing a solar energy system from their federal taxes. This was increased due to the Inflation Reduction Act of 2022 and will be held at 30% until 2032!
Commercial - Modified Accelerated Cost Recovery System (MACRS) is employed as a tax-driven depreciation method in the United States, enabling businesses to recoup the costs of specific assets, such as commercial solar energy systems, across a designated timeframe.
Commercial solar installations fall into the 5-year property category within the MACRS framework.
Consultation with tax professionals is recommended for the latest and most accurate information.
As of January 2022, the MACRS depreciation schedule for 5-year property entails a 20% depreciation in the first year, with subsequent declining percentages in the following years. Notably, businesses currently have the opportunity to leverage bonus depreciation, as outlined by the Tax Cuts and Jobs Act (TCJA). From 2024 to January 2025, a 60% deduction is applicable, followed by 40% in 2025 to January 2026, and 20% from 2026 to January 2027.
Protect against Raising Energy Costs
Another great benefit of solar is the ability to hedge utility prices and gain greater control over future expenses. Year after year, Utility Companies have consistently raised energy rates for consumers. Between 2014 and 2023, the rates have surged by over 75%. The trend of escalating costs is set to persist, as PG&E plans to implement yet another rate hike of 13% in 2024. This continual rise in energy prices places a growing burden on consumers, prompting concerns about the affordability of essential utilities.
Increased Property Value
The adoption of solar energy systems represents not only a commitment to sustainability but also a boost to property value. Solar installations are increasingly recognized as valuable assets that enhance the market appeal of residential and commercial properties. Homes and businesses equipped with solar panels often enjoy increased desirability due to reduced energy costs, making them attractive to environmentally conscious buyers and investors. Moreover, the prospect of lower utility bills and the potential for energy independence contribute to the value of a property.
Supports our Local Community
and Economy
By going solar, you help with local grid stability by reducing demand and providing clean energy to you and your neighbors. By choosing a local solar company, you make your dollar go a long way. Not only do you support the success of our local economy by spurring job growth and providing fair wage jobs for our neighbors, you stimulate local spending and tax revenues which directly supports our schools, roads, infrastructure and services.
Good for the Planet,
Good for our Future
Unlike conventional electricity, solar energy does not pollute. Solar is a great way to reduce your carbon footprint and gain peace of mind from knowing you’re doing the right thing for the planet. One kilowatt of energy produced by solar panels prevents 300lbs of C02 from being emitted into the atmosphere. A typical residential solar system will eliminate 3-4 tons of carbon emissions each year—the equivalent of planting over 100 trees annually.
