Final Year for 30% Tax Credit: Now is the Time to Buy Solar Panels
Saving money has become more challenging than ever. We all want to reduce our bills so we can increase the quality of our lives. Homeowners want to have the means to take that family vacation, send the kids to college, put in a pool, or achieve any number of goals to improve their lifestyle.
Solar panel systems can be a major catalyst to helping families achieve these goals by helping them save thousands on their electricity bill while playing their part in making our plant a greener place.
The Federal Government offers some incentives to get more people on board towards helping our country become independent of energy. To encourage the expansion of solar panel use, the government and multiple states are offering attractive financial breaks and tax cuts to help make solar panel systems affordable for all homeowners, and as a result, people are able to reduce the net cost of systems when people seek to buy solar panels at 30 percent off, and in some cases get even greater savings.
This article is intended to help those ready to buy solar panels make smart purchasing decisions while arming them with tips to help them exercise their right to access any tax credits or make use of rebates.
Can I Save Money by Leasing Solar Panels?
In many cases, leasing is an ideal option for people looking to cut costs. However, when it comes to solar systems, leasing is not an option that garners the greatest savings.
All of the financial benefits that come from tax credits and rebates only apply to those who buy solar panels. If you lease, the incentives go to the third-party owner. If you are trying to decide whether to buy solar panels, or speak them, speak with a few top solar companies and ask how their reps can help you finance solar panels using all the tax credits and financial incentives available to you. Buying solar panels is therefore more profitable in terms of overall cost and long-term investment.
The Investment Tax Credit
Also known as the ITC, the federal government offers a generous solar tax credit that gives homeowners and business owners alike the ability to write off a portion of their solar panel costs form their taxes. The federal tax credit equates to 30 percent of the solar panel cost, not taking into account any cash rebates. Be sure to ask your solar panel company about the Investment Tax Credit, and see if they are willing to help you qualify for the tax cut before your final payment is due (just a bonus that the best solar panel companies do for their customers).
State Tax Credits and Rebates for Solar Panels
Certain states offer additional tax credits alongside federal tax credits to lower the cost of installing solar panels. State solar tax credits let homeowners deduct a portion of the solar system’s cost in a similar way to how the federal tax credit eliviates financial strain. The amount will vary, from state to state.
Cash rebates are also common benefits to receive form your state, municipality, utility company, or solar energy companies. Most rebates are only available for limited times, and are void once a set amount of solar has been installed. Rebates generally reduce a solar system;s cost by an additional 10 to 20 percent.
Learn more about how solar panels can improve your lifestyle by saving you money, and feel good that you are playing your part in protecting our planet.