Residential solar power systems are great for reducing your carbon footprint, saving on energy costs and reducing your dependence on fossil fuels. However, many customers contact a solar residential contractor to install a solar system for their home because they can receive tax credits and rebates. The money you can save through tax credits by installing a residential solar power system is a great incentive for many people, and a way to make a home solar system more affordable.
If you’ve been considering a residential solar power system for your home, you should speak with a qualified solar residential contractor who can help you understand how the solar investment tax credit works. Here are some basics regarding tax credits for a residential solar power system, but for the most up-to-date information always speak with a solar residential contractor in your area.
- You must be liable for the payment of federal taxes if you are to receive any tax credits for a solar system in your home.
- You can receive tax credits for a residential solar power system which uses solar panels to produce electricity, as well as a solar system used to heat water.
- Before 2009, any residential solar power system could not receive a tax credit of more than $2,000. Now the tax credit for a home solar system is up to, but not exceeding, 30% of the total installation cost.
- The tax credit received for a home solar system is applicable one time only, but could be carried forward if you are unable to use the full tax credit in the year your system is installed. This varies in each area, so a solar residential contractor should be contacted for more details.
- Certain solar system projects may be eligible for a “grant in lieu of tax credit.” This means that rather than receiving a tax credit at the end of the taxable year, you will receive a payment to be put towards the cost of your residential solar power system.
- For more detailed information, you should speak with a tax professional and/or a solar residential contractor in your area so you’re aware of how the tax credits work and what you need to do to receive them. More information can also be found at www.desire.com and your encouraged to speak with your tax professoinal.
The great news about installing a residential solar power system is that the majority of people will be eligible for tax credits or rebates. With the cost of fossil fuels rising and home solar systems becoming more affordable for everyone, a residential solar power system is a smart choice which will end up paying for itself in the long run.
JP Electric is one of the leading installers of residential solar power systems in Tulare, CA. As a foremost solar residential contractor in Tulare, we can help you decide if a home solar system is right for you. Contact us today for a free solar estimate and site evaluation.