If you’re looking into investing in a solar energy system for your home, you likely have done some research. There are a lot of points that favor going solar, from helping to create a greener world by using a renewable energy source to potentially relying less on the grid. What you may have not considered yet is how solar can help you save money on taxes, too. We’ll break down how going solar can benefit you come tax time below.
Federal Solar Tax Credits
The federal solar tax credit allows eligible homeowners to potentially deduct up to 26 percent of the cost of installing their solar power system off their federal tax liability. At this point, there is no maximum cap on this value. As long as you own your solar system and have tax liability, you can potentially qualify for this tax credit.
The 26 percent rate is applicable on solar panels purchases through 2022. If you’re interested in saving on your taxes from a 2021 or 2022 solar investment, contact your tax professional. The credit will go down to 22 percent in 2023 and will disappear for residential solar systems in 2024, so it’s worth investing sooner rather than later.
Solar Renewable Energy Credits (SRECs)
Pennsylvania homeowners who invest in solar panels may be able to receive one renewable energy credit for every 1,000 kilowatt hours that their solar panels produce. This means you could potentially receive money for generating energy through your panels, as part of an initiative to increase the value of solar investments.
Investigate How Solar Can Be A Good Investment For You
Though going solar is a substantial financial investment, at Pink Energy, we can work with you to create a custom quote that will work for your energy needs. In the long run, you could potentially save thousands of dollars on electric bills, and with these tax incentives potentially in your favor, solar could be an even better value for you. Beyond that, we haven’t even discussed the environmental benefits too! Contact our local Pittsburgh office to learn more about how solar energy could be a part of your home.