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.
Gain Credits with the Net Metering Program
With net metering, you gain credits on your electric bill to offset any power you end up purchasing from PG&E during nights or winter months. Net metering reduces your utility costs dramatically. In fact, depending on the size of your system (and if you use a solar battery), you could generate most of your own power during the summer months when the sun is out longer, gaining more credits to use when your system isn’t generating power.
Active Solar Energy Tax Exclusion
What happens when you make an improvement to your property, such as adding a room, a pool, a fence, or an outdoor kitchen? Your property value increases. The downside is your property taxes increase too. That’s not the case for solar panel installation. Instead, your property values increase, but your property taxes stay the same. California's Active Solar Energy Tax Exclusion incentive allows homeowners to install solar systems without a change to the assessment of their property. It’s just another reason why going solar is a bright idea!
Would you like to learn more about solar tax credits and solar panel installation? We, at Summit Technology Group, are happy to answer your questions and provide a consultation. Call us at 707-542-4773 or fill out our online contact form to get started.
