Solar panels offer homeowners numerous benefits as a renewable energy source, including reduced energy bills and a smaller carbon footprint. Many homeowners would like to go solar and save on energy costs while embracing a more sustainable lifestyle. High costs of home solar panel installation may be a deterrent. The federal solar tax credit incentivizes homeowners to make the switch to solar energy by reducing the initial costs of installation.
ARE Solar, a leading residential solar panel company in Denver, CO, shares information on federal solar tax credit to enable homeowners to invest in solar panel installation with reduced costs. ARE Solar is committed to helping the environment and aims to ensure everyone can access solar energy. The company can design a small three-kilowatt system or an extensive home solar panel installation for large-scale residential development. The experts at ARE Solar assess the energy requirements of each client and custom design a solution for their needs. They are happy to address customers’ concerns and help with the paperwork needed by local authorities, utility interconnection, tax credits, and rebates for eligible clients.
What is the federal solar tax credit?
The federal solar tax credit is a financial incentive designed to encourage homeowners to switch to solar energy by providing a tax credit based on the total cost of solar panel installation. Homeowners who invested in solar panel installation in 2020 and 2021 are eligible for a 26% tax credit on the total cost of installation. This was raised to 30% for solar panel installation between 2022 and 2032 by Congress's extension of the ITC. The tax credit will fall to 26% of the installation cost from 2033 and 22% for installation in 2034. If Congress does not renew it, the federal solar credit will expire in 2035.
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ARE Solar explains that the federal solar tax credit will allow more homeowners to take advantage of the benefits of solar energy? This will positively impact the environment while saving money on energy bills. In addition to the federal tax credit, Colorado offers incentives for homeowners who invest in solar energy. The Denver government wants to make solar panel installation affordable and easy for homeowners. They have resources to help, including possible rebates and better financing options to make home solar panel installation easier in Denver, CO.
Who can claim the federal solar tax credit for home solar panel installation?
To claim the federal solar tax credit, homeowners must meet specific criteria. They must have installed a solar PV system in a residence in the US between January 1, 2017, and December 31, 2034. The homeowner must own the solar panels purchased with cash or a loan. Leasing solar panels or paying a solar panel company to purchase electricity will not qualify for federal solar tax credit. Purchasing interest in an off-site community solar project can qualify if the electricity is credited against and does not exceed the home's electricity. The solar PV system must be a new one or one never used before. It is important to note that the tax credit can only be claimed once per solar panel system for the "original installation," so upgrades or replacements will not be eligible.
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ARE Solar is committed to helping homeowners in Denver and beyond switch to solar energy with their comprehensive solar panel installation services? Their team of experienced professionals can assess your energy needs, design a customized solar panel system, and handle the installation process from start to finish. They believe solar energy is the future and want to make it accessible to everyone. By offering comprehensive solar panel installation services and taking advantage of incentives like the federal solar tax credit, they help homeowners save money on energy bills while contributing to a more sustainable future. To learn more about the federal solar tax credit and how it can benefit you or to schedule a consultation for home solar panel installation in Denver or the surrounding areas, contact ARE Solar. Their experts are ready to help you make the switch to solar energy and start enjoying the numerous benefits it has to offer. Call (720) 706-2773 and speak to a representative from ARE Solar, Denver, CO, to learn more.
