How 2019’s Tax Credits Reduce Solar Power Costs by 30%
Last modified on December 10th, 2019 at 8:24 pm
Last modified on December 10th, 2019 at 8:24 pm
Anyone investing in Solar Power in 2019 is set to benefit from a 30% federal tax credit. But sadly, 2019 is the last year and the last chance to make those savings. If you’ve been considering investing in solar, there has never been a better time to get started than now!
Solar power owners could effectively receive a 30% discount. Solar power experts are estimating, on average, a massive $13,500 saving. It’s unlikely we’ll see such an opportunity again, with tax credit reductions decreasing to 0% over the next few years.
Solar power systems are becoming more and more popular, due to the savings made and the ecological impacts. The 30% tax credit has boosted solar installations throughout the country as property owners take advantage of the huge savings.
Is There Enough Time To be Eligible for the 30% Federal Tax Credit?
If you act fast, yes. But to be eligible for the tax credits the installation will have to start within 2019 – so act now!
- The tax credit percentage is set by the year when the solar installation began.
- The tax credit is eligible even if the installation is not completed in 2019.
- The solar installation must be fully operational by December 31, 2023.
The best solar power companies will be able to work fast and ensure installation is at least started in 2019. This will make you eligible for those tax credits. These solar companies are often very educated on the savings and financing side of the job. They may even offer a solar financing service to ensure you make the quickest return from your investment.
In most residential cases, a solar installation can be as quick as two days. It’s worth contacting your local solar power company to see how they can help you with that 2020 deadline coming fast.
What are Solar Tax Credits?
Federal solar tax credits allow property owners to deduct up to 30% of the cost of the solar installation in the U.S. Whether it’s a commercial or residential property, there is no limit to the value of a system which is eligible. It’s a great chance to make savings for solar owners, big and small. 2019 has seen a 30% tax credit extended until the end of the year. Over the next few years, the tax credit percentage will reduce to 0%.
How Much Can I Save Through Solar Tax Credits?
Solar power owners can effectively receive a 30% reduction on a solar power installation in 2019 thanks to the federal solar tax credits, regardless of how much the system costs.
For example, if your solar power installation costs $10,000, then you can receive a 30% tax credit of $3,000. This is proving hugely popular for Clearwater solar power and St. Petersburg solar power investors, with vast savings being made for all.
- Help make solar power installation more affordable.
- It encourages property owners to buy their own solar systems. Leasing does not qualify for tax credits.
- It helps boost the solar power industry.
Federal Tax Credits Can Help Reduce the Costs of:
- Solar Power Installation Fees
- Solar Equipment
- Shipping Costs
- Engineer Fees
- Electrician Fees
- Roofing Fees
- Permitting Service Costs
- Permit Fees
- And More
A Brief History of Solar Tax Credits
In 2005 the EPA established the ‘Energy Policy Act.’ This included a solar tax credit that was set to expire in 2007. But due to its popularity and boost for the solar industry, it has been extended for over a decade. In 2019, home and business owners have one last opportunity to make record savings.
- 2019 – 30% Solar Tax Credits until December 31, 2019.
- 2020 – A reduction to 26% Solar Tax Credits
- 2021 – A reduction to 22% Solar Tax Credits.
- 2022 and onwards – Only new commercial solar system installations will receive a 10% tax credit reduction.
- 2022 and onwards – 0% tax credit for residential solar installation.
What are the Requirements to be Eligible?
Solar power owners must be aware of the following to ensure they are eligible for the 30% tax credit reduction:
- The solar installation must have started by December 31, 2019.
- You must own and not rent the property.
- You must own the solar panels, not lease.
- You can still receive tax credits if you purchased your solar panels with a loan.
How Do I Claim the 30% Solar Tax Credit?
When filing your 2019 tax return, you should:
- Check that your installation started before December 31, 2019.
- Collect any receipt related to the cost of solar power.
- Complete IRS Form 5965
- Add the Tax Credits to Form 1040
- Contact your local solar power installation company for more information.
Is Energy Storage Eligible for Tax Credits?
Energy storage systems are eligible, but only if they are combined with photovoltaic arrays or other renewable energy systems that are eligible under the incentive. This means you can’t receive tax credits for a storage system alone. It must be part of a full solar system.
- Residential owners will receive a tax credit if 100% of the storage’s charge is provided by solar.
- Commerical owners will receive a tax credit if at least 75% of the storage’s charge is provided by solar.
How to Find the Best “Solar Power Company near Me”
Local solar power companies are easy to find, but the best have certain stand-out services and promises. Once you start searching, make sure they are:
- A NABCEP Certified PV Installer
- Licensed & Insured
- Promise at least a 25 Year Life Span
- They have vast experience.
- Promise expert maintenance.
- Have five-star reviews across the board.
If you want that federal tax credit reduction of a whopping 30%, then act now! With huge savings to be made, there is no reason to delay. Don’t spend 2020 regretting it, contact your local solar power company today.
If you live in Florida near the Tampa Bay, St. Petersburg or Clearwater area, be sure to inquire about Florida Power Services “The Solar Power Company”. Florida Power Services has been labeled as the top-rated St. Petersburg Solar Power Company for over 17 years. Their Clearwater solar installation team has recieved numerous awards of excellence for quality and customer satisfaction provided. Florida Power Services “The Solar Power Company” has three convenient locations to better serve you.