This year is the last year to claim 26% of your solar installation cost on your federal taxes! With the federal solar tax credit, you can save money on the installation costs in addition to the savings you experience with owning residential solar panels. Expert Solar Pros—a certified solar panel installer—has created a helpful guide to see if you qualify, and how much you can save.
What is the solar investment tax credit?
To push the U.S. towards more environmentally friendly electricity, a new federal solar investment tax credit program was put in place. With this program, homeowners who install solar panels are eligible to receive a tax credit.
Am I eligible for the federal solar tax credit in 2022?
According to the rules of the federal solar tax credit, there are three main criteria for eligibility:
- You completed a home solar panel installation and own the solar panels.
- The installation is on your primary/secondary residence in the United States.
- The solar panels are being used.
If you meet the above criteria then you are eligible to claim the solar tax credit on the installation year’s tax return. In addition, the year of installation influences the amount you can receive from the tax credit. The amount you claim is directly related to the home solar installation cost.
- Installed between 2006-2019—30%
- Installed between 2020-2022—26%
- Installed in 2023—22%
For example, if you installed solar panels in 2022 and the installation cost totaled $5000, you could claim $1300 in tax credit (26% of the total cost). This program is currently only available until 2024, meaning if you are looking to get solar panels, now is the time to do it.
What is included in the claim?
There are many aspects to installing solar panels so you may be wondering what exactly qualifies to be claimed. In addition to the actual cost of the solar panels, installation/labor costs, system equipment (mounting, wiring, etc.), energy storage equipment, and even sales tax are eligible to be claimed. Essentially, the entirety of the project can be claimed on your tax return that year.
Can I get a loan for solar panel installation?
To qualify for the tax credit, you must own the solar panels. Many people can take this to mean that they have to purchase the installation in cash, but this is not true. Your solar panel installation still qualifies for the federal tax credit if you financed or took out a loan for it.
In fact, many certified solar panel installers offer financing for home solar panels. This has opened up the door for many families to be able to afford this clean energy resource.
Residential solar panels in Virginia Beach, Norfolk, and Chesapeake VA
Are you interested in taking advantage of the federal solar tax credit this year? Do you live in the Hampton Roads area? Expert Solar Pros offers solar panel installation and residential solar financing in Chesapeake VA, Virginia Beach, and Norfolk. Our team is available to answer any questions you may have and walk you through the process.
This incentive is only available until 2024 so don’t wait to get your residential solar panel installation! Start the process today and claim your 26% tax credit in 2022. Contact us today to discover just how much this renewable energy source can save you!
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Looking for solar installation services in Virginia Beach, Chesapeake, and Norfolk? Give us a call at 757-988-7777 today! Our experienced team is ready to help you with the Federal Tax Credit and guide you through our low-interest financing option.