Are Solar Panel Tax Credits Still Available in 2022?
Filed under: Solar Installation
If you are worried that you missed out on significant tax credits by waiting to purchase solar panels for your home, you are in luck. The federal government extended the 26% tax credit through the end of 2022 to promote renewable energy for your home.
How Does the Tax Credit Work?
For every dollar you owe in taxes in a given year, you can deduct 26% of the money you spent on your solar panel installation from your owed taxes. The tax credit is an incentive for you to invest in solar panels sooner than later.
At the end of 2022, the federal tax credit will decrease to 22%. So this is the last year that you can partake of the 26% tax credit.
Solar Panels and Return on Investment
Aside from federal tax credits, you can expect several other ways to regain the money that you spend on solar panel installations.
- Monthly Utility Bills: Many people initially look into solar panels because they want to partake in renewable energy from the sun for their homes. When the utility bill comes in each month, especially during a particularly cold winter or hot summer, the number on the bill can be shocking. Solar panels will immediately take care of that, using power from the sun instead of partaking from the energy grid.
- Increase in Home Value: Homebuyers are willing to spend an average of $15,000 more on a home that has existing solar panels. Who wouldn’t want the built-in savings of decreased bills?
- Bonuses from Energy Company: Your energy company usually offers bonuses for households that use less energy each month. This is supposed to motivate people to turn off their lights and not crank up their air conditioning in the summer. But for those who have solar panels, the bonuses are basically guaranteed.
These are just some of the benefits offered for families with solar panels. You will also find local programs that offer incentives for installing solar panels and, essentially, contributing to the environment.
For more information on how solar panels can be beneficial to your home, please speak with a member of our team at New Day Solar. We can provide you with details specific to your home and power needs. Call for a consultation with a solar professional at (855) 444-6329.
