Federal tax credit on solar to end in 2016
At the end of 2016, residential solar credits from the Energy Policy Act of 2005 will end unless Congress extends the deadline. For homeowners considering solar energy panels, this means the time to invest is quickly closing.
The Energy Policy Act of 2005 implemented a 30 percent Investment Tax Credit for commercial and residential solar energy systems, driving investments and doubling the nation’s solar capacity in just one year. Since then, solar deployments have continued to rise with the average cost per watt dropping from $7.50 in 2009 to $2.89 in 2013. However, should Congress decide not to pass a second extension on the ITC, commercial deployments will drop to 10 percent and homeowners will lose their tax credit altogether.
The 2016 U.S. Budget does, however, include language to renew these tax credits and reincentivize solar and other clean energy solutions.
“That’s our top priority for this session of Congress,” Ken Johnson, chief spokesperson for the Solar Energy Industries Association, told Scientific American, “trying to do as much as possible before it drops to 10 percent in 2017.”
However, homeowners shouldn’t rely on the budget to revitalize the tax credit before it vanishes. There are plenty of options for investing in solar now, including financing, to mitigate the cost of solar panels and help you start saving now. Solar panels will pay for themselves faster than any other home improvement project, and by saving you thousands of dollars a year on electricity, they ensure that you’re able to pay off any financing quickly.
Take advantage of tax credits now by contacting SolarMax Technology to learn more about how you can finance and install solar panels today.
To receive a free solar consultation, click HERE.