Timing is everything when you’re thinking of purchasing a solar system for your home. It may sound like a great marketing pitch but, hey, it’s true. If you want to get the most savings on your solar install… now is the time to start exploring your options. The biggest incentive out there today, the Solar Tax Credit, or Investment Tax Credit decreased from 30% to 26% in 2020. It will step down just once more (to 22% in 2021) before dropping to 0% permanently for residential solar installations (a 10% solar tax credit will remain for commercial solar systems).
Solar Tax Credit – How does it work?
The solar tax credit is applied to your federal income taxes as a credit, and it reduces (or eliminates) what you owe. It’s not a refund or a deduction. Anyone who purchases a solar installation on their home or business is eligible to claim the tax credit. However, you must have a tax liability to claim the credit. You can claim the credit over more than one year. In doing this you carry any leftover amount forward into the next year.
If you have any questions or need more clarity, our Solar Consultants are ready to chat with you about the solar tax credit. As you likely assumed, we are not tax experts, so we will ask you to reach out to your tax professional for any questions related to your specific tax liability.
Too early? Think again!
To claim the 26% tax credit, you must act quickly as our end of the year queue is filling up! If you purchase a residential solar system in 2020 and it is installed in 2021, you would only be eligible to take that year’s tax credit (22%). So, your system needs to be installed in 2020 to be eligible to claim the full 26%. (Heads up for business owners: the rules are slightly different here for commercial projects).
Ohio Incentives & Additional Offers?
Unfortunately, there are no statewide or local solar incentives available in Ohio. Loan options vary from solar company to company. Various finance partners have different programs and different rates (and different hidden fees baked into the price). Most solar installers in Ohio offer $0 down loans. Like them, we can offer you zero money down with any of our term loans. This is a great option for those that want to go solar but don’t want to tap into home equity or savings.