Did you know only 6% of American homes have solar panels installed? It’s a low number that the US government wants to increase due to the pervasive and dangerous global climate crisis.

To encourage citizens, the US offers a solar tax credit. Many states also give tax credits and rebates meant to stimulate homeowner interest in solar power.

Are you ready to do your civic duty and reduce your carbon footprint by using solar power? Read on to learn more about the Solar Tax Credit and how it will save you money.

The Growing Crisis

The effects of the climate crisis are hard to ignore as wildfires ravage the west coast and soaring heat waves destroy roads in the Pacific Northwest. Unprecedented weather events are fast becoming more common. Experts predict the severity of hurricanes and droughts to increase.

It’s easy to feel helpless, especially as political leadership continues to bicker at the margins of addressing this current calamity. So many, even those recently in the White House, don’t even believe there is a crisis.

No matter what they think or how they choose to legislate, you can do your part to shepherd this planet for future generations by reducing your consumption of fossil fuels.

Solar Energy Tax Credit

The Solar Investment Tax Credit was started in 2005 as part of the Energy Policy Act. This Act (ITC) spurred short-term activity in the renewable energy market by providing solar savings. The ITC’s original expiration date came in 2007, but politicians have extended it multiple times as an easy way to encourage consumers to invest in solar energy.

How Does It Work?

The rules change slightly each time the ITC gets renewed in the US tax code. As of right now, the current ITC and its parameters will disappear in 2024 for residential solar panel installation. Though there is a chance it could get renewed, it’s best not to bank on it.

If you’re on the fence about solar power, now’s the time to install. You can save with solar more now than at any other time.

If you install a solar panel system in your home between now and the end of 2022, you receive a 26% tax credit on the cost of installation. You see a reduction in your tax bill reflective of that percentage on the total cost of installation reported to the IRS.

Get the Solar Tax Credit Before It’s Too Late

The Solar Investment Tax Credit (ITC) will expire in 2024. Though renewal is always an option, don’t bet on the decisions of political leaders. If you’re thinking about going solar, now is the time to take advantage of the solar tax credit.

Why wait any longer? You see the climate crisis growing in severity, and you want to do something about it. So do it, and install solar panels today.

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