State solar tax credits are specified amounts of money that can be used to offset against a tax liability. Therefore, the federal Investment Tax Credit (ITC) that applies to solar can be claimed on federal income taxes for 30% of the cost of a solar photovoltaic (PV) system. To receive...
If you can’t use the federal tax credit, leasing solar panels or a PPA would likely be the best option for you. With both of these options, a 3rd-party financier will take on the tax credit for you, effectively lowering your payments. These options are typically zero dollars up front. The...
If you’re looking for the ultimate ROI on your solar system, you should consider purchasing solar with cash. You can look at buying a solar system as an investment. Instead of leaving it in a bank and getting a low return, or investing in the stock market with high risk, you can invest...
There’s one rule of thumb when it comes to a solar purchase vs. a solar lease: If you can claim the solar tax credit, go with a purchase. When buying a solar system, the federal government will pay for thirty percent of the systems cost through the solar tax credit. If your federal...
SRECs, or Solar Renewable Energy Certificates, are solar incentives available in some states. In states with a SREC market, there is a Renewable Portfolio Standard (RPS) that the utilities must meet. Essentially, the utilities have to have a certain amount of their energy production come...
At this point, you know the federal solar tax credit for solar is 30%. It’s important to know that this is a credit, and not a deduction. Here’s how you get your tax credit. When you file your federal taxes in the winter or spring, you’ll file the 5695 IRS form. You’ll claim how much the...
The Solar Investment Tax Credit (ITC) is a government federal tax credit where you can lower the price of your solar energy system by 30%. For example, if the gross system cost of your system is twenty thousand dollars, your tax credit would reduce your PV system cost by thirty percent...
A big question for homeowners is, “how much does solar cost?” Well, that actually depends on several factors. How much energy do you use? The more energy you need to offset, the larger a system you will need, and the more it will cost you. How do you want to finance your system? Are you...
If you’re renting a property, it is still possible to go solar, but we’d need to speak with your landlord or property owner. As a landlord, you may think it’s not worth it to put solar on a property where others use the electricity, but that’s not the case. If you bought solar for the...
