Having a solar panel upgrade installed at your home gives you immediate savings on your electricity use. But a solar panel installation is also a smart way to protect your household budget from volatile energy costs. It is an investment that can add value to your home while it saves you money. While California no longer offers tax credits to homeowners for upgrading to solar panels, you’re still eligible for federal tax credits through 2021.
Federal Tax Credits for Solar Panel Upgrades
Through the Residential Renewable Tax Credit, homeowners are eligible for a tax credit on their federal income taxes. To receive the maximum 30 percent credit, you must purchase your solar panel system and have it installed and in use at your home by Dec. 31, 2019. This credit decreases to 26 percent in 2020, and then to 22 percent in 2021. After 2021, no credits are currently scheduled.
The federal tax credit is a credit that is applied to the taxes you owe. There is no cap on this credit, but because it is a credit, if it is greater than what you owe for your federal income tax, then the remaining credit can be rolled over to your next year’s tax return. The biggest benefit of this credit is that it helps you realize your return on investment sooner.
Special Programs for California Homeowners
The upfront cost of a solar panel installation can be intimidating. California homeowners are eligible for special programs that can help you to finance your systems. Gilmore Heating Air and Solar has partnered with California’s HERO Program, which is funded by Property Assessed Clean Energy (PACE) legislation and the YgreneWorks program through the Ygrene Energy Fund.
Upgrade to Solar Today
Federal tax credits and financing opportunities make it easier for California homeowners to upgrade to solar panels. Contact Gilmore Heating Air and Solar in Placerville to learn more about the financial incentives available for switching to solar energy. We’ll strive to answer any questions you may have.