Does Your Solar Panel System Make You Eligible for Savings?

A solar panel system on your home in the North Bay, CA, comes with many benefits including energy independence, reducing your carbon footprint, and saving money on your utilities. Your solar panels may be able to save you even more money if you’re eligible for a solar tax credit! Keep reading to learn more about available solar tax credits and to see if you’re eligible for a tax return credit next tax season.

Isn’t It Time to Consider Solar Panel Installation at Your California Home?

Whether you live in an area that has experienced blackouts or not, you’ve certainly felt the effects of California’s power shortage. You never know when the power will go out or when you’ll see an increase in your electric bill. Instead of paying for the rising costs of electricity in your home or suffering from unexpected blackouts, why not work toward energy independence? In fact, California and the federal government want you to go solar!

In this blog, we’ll highlight three ways you can take advantage of a solar tax credit for your home in North Bay, CA. Then, when blackouts occur, or the electric company notifies you of another price hike, you’ll be immune to those problems. Keep reading below to find out more!

SEE ALSO: 4 Questions to Ask Before Installing Solar Panels 

The Federal Solar Tax Credit

Everybody wants to save money and make money. You can with solar power! Even though California no longer offers a rebate for solar panel installation, the federal government incentivizes homeowners to install solar systems by providing a solar tax credit. We’ll cover that shortly. But even if there wasn’t a credit, there are so many other positive reasons to go solar. Switching to solar helps you:

 

• Save money on your electric bill or maybe eliminate it altogether
• Do your part to reduce carbon emissions and reliance on fossil fuels
• Reduce the electrical power demand as well as blackouts in California
• Enjoy access to power if the electricity goes out (when you have solar battery storage)
• Increase the property value of your home and resale value

 The federal tax credit offers even more incentive to install a solar system on your home. The Investment Tax Credit (ITC) was established by the United States government to encourage homeowners to switch to solar. Right now, homeowners who install solar panel systems between 2020 and 2022 receive a 26% tax credit.

In other words, 26% of the cost of installation and materials can be applied to your federal income taxes, reducing your tax liability by potentially thousands of dollars. That’s one way you can save money, but there are two other compelling reasons.