Understanding The Solar Federal Tax Credit Change
There are many reasons why a person decides to make the switch to solar. It can be for environmental reasons, to gain energy independence, or to save money on energy bills. Usually it is a combination of reasons but saving money is generally a big part of it. Therefore, many people are wondering if it will still be worthwhile to go solar when the Solar Federal Tax Credit drops from 30% to 26% in 2020.
The answer is a resounding YES! The reason being that you will still be reducing your carbon footprint and saving money on your energy bills. Plus, the cost of going solar is continuing to drop as solar equipment is becoming increasingly more efficient. Meaning that the cost of going solar is still beneficial for the environment and your wallet.
Change In Tax Credit
Below is an example to further illustrate the change in the Solar Federal Tax Credit. The examples is for a 6500 watt solar system at $3.00/watt, with the 30% tax credit versus the 26% tax credit.
30% Tax Credit
Total Cost: $19,500
30% Federal ITC: $5,850
26% Federal Tax Credit
Total Cost: $19,500
26% Federal ITC: $5,070
Difference:
$780
Even with the decrease in the tax credit it is still attractive to make the switch to solar. You will still be receiving a large tax credit back, and decreasing your energy bills and your impact on the environment.
If you are looking for more information about the Solar Federal Tax Creditreach out to us today!
We would be happy to answer all of your questions and help you navigate if going solar is the right option for you!
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