Need to Know: Solar Federal Tax Credit Is Still Available in 2020
Have you been “on the fence” about installing solar panels for your home? Homeowners love the idea of an ongoing source of clean energy and saving money on their electric bill, but sometimes wonder whether they should invest in a solar system or not. The Federal Tax Credit helps make solar more affordable!
New Federal Tax Credit Rates in 2020
If you have been following the solar industry, you have probably heard that Federal Tax Credits expired at the end of 2019. Yes, it’s true that the Federal Tax Credit decreased when the year came to an end, but they didn’t go away entirely. That means that you didn’t miss the opportunity to save money when you purchase a solar system!
Federal Tax Credit Rates for Solar Installations In 2020
Under the current program, Federal Tax Incentives are still available in 2020, but you need to act fast if you want to leverage the highest rate that is available. Starting January 1st of this year, the Federal Tax Credit rate was set at 26%, which means that you get a 26% Federal Tax Credit, based on the cost of the solar system. This is still a substantial amount of savings! This rate will be dropping again on January 1, 2021 to 22%, which is why it is best to invest in solar this year, in order to maximize the tax benefits. This tax credit can be taken when you file your tax return for the year that the solar system was installed.
The tax credit was designed to help you save money when solar is installed on your home. If you do the math, solar is a great long-term investment, because of the many years of free, clean energy that is available for you and your family. Paying cash for a solar system is the least expensive way to buy solar, but there is also financing available when you purchase a solar system. These Solar Loans are typically 12 years of monthly payments, with 0 down. The tax credits are an added bonus, helping you reach the break-even point more quickly. When you purchase solar, you will no longer have to worry about the rising cost of electricity from your utility company. Plus, the solar panels and inverters, both come with a 25 year manufacturer warranty. Once the solar loan is paid off after 12 years or sooner, you will have years of free electricity.
Learn About Your Options for Solar
If you have been wondering about the cost of solar, give our team a call here at New Day Solar. We have over 30 years experience installing solar systems and will always give you honest answers to your solar questions. Keep in mind that we are not tax advisors, so you will need to contact your tax expert to find out if you can take advantage of the Federal Tax Credit before you purchase a solar system.
If you do decide to go solar, please call us to schedule a free, no-obligation consultation at:
(855)444-6329 or you can visit us online at: www.newdaysolar.com. We will design and install a custom solar system to meet your family’s energy needs!