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26 tax credit ohio solar installation

Solar Tax Credit Extension is Included in the Covid-19 Relief Bill

We are thrilled to announce the Extension of the 26% Solar Investment Tax Credit!  

The United States federal spending and tax extension package was passed by congress alongside the $900 Billion Covid Relief package last week and signed into law by the President on Sunday night. This package will bring huge relief to Americans who are struggling in the face of the pandemic. It also includes several critical extensions to the solar investment tax credit (ITC).  

What This Mean for Solar Shoppers and Customers 

The ITC dropped from 30% to 26% in January of 2020. The solar industry has been bracing for another step down in the (quickly approaching) new year. Just a few days away from the end of the year – solar shoppers who have not yet gone solar, or have not had their project installed–  have more time! 

With the Extension outlined in the stimulus bill, solar buyers will receive 26% back from their system’s full turnkey cost if installed before the end of 2022. So, solar projects constructed in 2020, 2021, or 2022 are now eligible for the full 26% ITC.  

Solar projects constructed in 2023 will be eligible for a 22% tax credits. After 2023, there will be no tax credit for residential solar installations. Commercial-scale solar projects will be eligible for a 10% tax credit from 2024 onwards.  

Tax Credit Law – Locations  

  • Original code for residential solar properties can be found in Title 26 Section 25D of the U.S. Tax Code
  • Original code for commercial solar projects can be found under Title 26, section 48 
  • Extension language for residential solar can be found in the relief bill on page 4915 
  • Extension language for commercial solar can be found in the relief bill on page 4908  

Clean Energy Growth 

We are excited by the inclusion of so many renewable energies in the bill. The inclusion of solar energy and so many clean energy alternatives in this bill will certainly spur tremendous growth and clean energy investment for years to come.  

The solar tax credit has been the most significant stimulus for residential and commercial solar that the industry has seen. According to the Solar Energy Industries Association, since its implementation in 2006, the residential and commercial solar tax credit has helped the U.S. solar industry grow by more than 10,000 percent, with an average annual growth of 50% over the last decade alone.  

We expect to see solar industry professions keep their stance at the top of lists predicting job growth in the years to come. This Extension will undoubtedly help us deploy more solar energy more quickly across homes and businesses across the state of Ohio and beyond. Third Sun Solar and our partners across the country are excited to continue to deploy solar energy and supply a means of gainful employment to our communities in these times of economic hardship.  

 

To find out more about the Solar Investment Tax Credit, the Extension, and what it all means for your solar project, get in touch!  

 

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A Solar Champion in Cincinnati

Damian has lived in Mt. Washington, a neighborhood in Cincinnati for the past 20 years. Something he loves about his neighborhood is the ease at which he can move. He can catch a bus to work downtown, and walk to the post office, library, and grocery store. There are probably more people out now, walking around their neighborhoods, and interacting with their neighbors. When you go walking around your neighborhood, do you notice any solar arrays on the rooftops?

Solar in Cincinnati

Damian started seriously thinking about going solar in 2017, a few months prior to taking the plunge. Really, it was something he was always considering.

In 2012 his furnace from the 1940s needed replaced, so he had a geothermal system installed to power the HVAC system. After that, with guidance from local non-profit organizations, he got a whole-house energy audit. He got better insulation for his home and learned more ways that he could make his home energy efficient. He says that he is always looking for the win/win – an investment in the environment that also eventually saves his family some money. Going solar was the natural next step.

Damian says that he’s a tree hugger by nature. He was also motivated by the eventual cost savings.
Like other solar homeowners, he realized throughout the process that the solar array would increase the resale value of his home.

Damian says: “The concept is that it’s free energy – the sun is shining – why not?”

Solar for the Climate

Like Third Sun, Damian is also a believer that as a country we are way too reliant on fossil fuels which contribute to pollution and climate change. He had read about other countries that were more progressive environmentally. He and his wife had even traveled and seen the abundant solar in Germany, a country that gets less sun annually than Cincinnati, Ohio.

A Pioneer

Damian is a pioneer in his community. He promotes green energy at work and advises friends and colleagues who have expressed interest in clean energy. In August 2020 Damian joins the true Solar Champion club.  His colleague who had been considering solar and who Damian had been helping along in the process chose to take the plunge with Third Sun Solar!

What Damian Learned

  1. Panel durability – Damian was surprised at how lightweight the panels are and how durable they are, maintaining their quality season after season for decades.
  2. The installation process – the installation process itself was fuss free and quick.
  3. Net-Metering in Ohio – Damian learned that sometimes it’s not the best financial move to place as many panels as possible onto the roof. While you can send energy back into the grid, you do get paid wholesale, not retail, for that energy. Working with your installer to find the sweet spot is vital.

What He Likes Best

Damian likes being able to use the SolarEdge dashboard to see the “juice” he’s generating daily or monthly.

Damian says: “I have a calendar reminder to check SolarEdge once a month – it’s been fun. I look and see that I’ve got 800 kWh – Sweet! That’s 800 kWh I didn’t have to pay Duke Energy for!”

Also, the system itself is fuss-free. So far it’s been entirely maintenance-free.

Advice for those shopping for solar

Damian knows the questions you have: “How do you get started? Who installs solar? Do you have to install yourself? Do companies do it? How much will it cost?”

His advice to you? Pick up the phone and make a call. An estimate doesn’t cost a thing and all measurements are taken for you. You’ll be assisted through the loan process and most of the paperwork is done for you. There is no obligation, and it’s worth looking at.

“Solar eventually becomes free energy. The number of days where you get a decent amount of sun even through October and November is considerable. Even on a cloudy day you’re getting a decent amount of solar with your panels.”

Damian says — “Slap some panels up there and enjoy it! Do good for the planet and save a little money! If you can look long term it totally makes sense.”

 

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