As American families, businesses, and communities across the globe begin to incorporate solar technologies into their everyday lives, it is important to analyze the key take aways that we consistently see as a company at Infinity Solar USA.
The Inflation Reduction Act makes installing solar panels and storage batteries a more attractive investment than ever before. While diversifying energy sources and improving efficiency are very important, saving money through these different technologies has made the decision for someone shopping Solar easy.
One way Solar Energy is saving money for people is through The Federal Residential Solar Energy Credit, which is a tax credit (A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe) that can be claimed on federal income taxes for a percentage of the cost of a home’s Solar PV System paid for by the taxpayer.
With the new legislation’s Federal Residential Solar Energy Credit, you can subtract 30 percent of the cost of installing solar heating, electricity generation, and other solar home products from your federal taxes.
An extension passed in In August 2022 raised it to 30% for installations between 2022-2032 and it will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it which means homeowners considering solar installations have plenty of time to consider their options.
How much you’ll save through the Federal Residential Solar Energy Credit depends on several factors, including how much electricity your household uses, the size of your solar system and the amount of sunlight it gets, and local electricity rates. Money back just for getting a Solar System you say? I know its crazy right!