There are many good reasons to go solar for your home or business. Many Bay Area homeowners have a solar system installed to protect themselves and their families against rising energy rates. While it’s hard to predict exactly how much or how fast electricity costs will rise, one thing is certain: they will continue to rise. Conversely, an investment in solar power for your home or business not only reduces or even completely eliminates monthly electricity costs, but can also increase a home’s property value and lower a business’s operating costs. A third and very important financial incentive is the federal government’s generous solar energy tax credit.
The solar energy tax credit allows a homeowner to reduce the amount of income taxes they would otherwise have to pay to the federal government. This credit is good for 30 percent of the homeowner’s investment in their solar system, including solar panels, a charge converter, battery, and inverter, but only for the next three years. The credit will be reduced to 26 percent in 2020 and 22 percent in 2021. After 2021, the solar tax credit for residential customers will be eliminated entirely. While there is a chance the credit could be extended, many homeowners considering solar power plan to install their systems in the next few years to take advantage of the credit.
For commercial businesses looking to go greener, they may qualify for up to 70% off with solar tax incentives. Not only will you qualify for a 30% federal tax credit, but you can also accelerate the depreciation of your solar system in 5 short years. These tax breaks are equal to 60-70% of the cost of the system, so you need just 3-4 years of energy savings to recoup your entire investment.
In addition to the financial benefits of the solar tax credit, many people go solar because they feel that solar power is a more environmentally responsible solution. Solar energy is sustainable and renewable. Solar energy provides a zero-emission way to power buildings and appliances, heat water, and refuel electric vehicles. The more popular and widespread rooftop or carport solar panels become, the more they reduce the load on coal-burning power plants.
Since buildings account for 38 percent of all carbon emissions in the US, solar power can significantly reduce our carbon footprint. A typical residential solar panel system will remove three to four tons of carbon emissions each year, the equivalent of planting more than 100 trees per year. Going solar is not only a great way to go green, but taking advantage of the solar tax credit, before it expires, is a great way to save some green.
