Why American Homes Are Moving to Solar at an Increasing Rate
Did you know that some states like California are moving to enact legislation that requires newly constructed homes to have solar panels? Did you know that the Solar Investment Tax Credit is about to expire in the next few years? Did you know that the longer you wait, the lower your tax credit will be? If you answered no to any of these questions, find out why American homes are moving to solar at an increasing rate.
When Will the Incentives End?
During the last decade, hundreds of thousands of homeowners have invested in solar energy. Thanks to the Solar Investment Tax Credit, the cost of installation reduced dramatically. In 2015, solar panel acquisition increased by 59 percent as the subsidy was set to expire. Thanks to the interest, the federal government expanded the program until 2021. There is a catch, however, as each year it reduces the amount of the tax credit, which equates to thousands of dollars.
The tax credit provides an equal reduction of 30 percent from your income taxes whether it is a residential or commercial investment in solar energy. Home or business owners will only have access to the full credit until the end of 2019. In 2020, the credit will reduce to 26 percent and, by 2021, it will fall to 22 percent. If you wait until 2023 to invest in solar panels, the residential credit will be zero while the commercial tax break will permanently be 10 percent.
Solar Energy Technologies Office's investments have reduced the cost of energy production significantly. That said, utility bills continue to run higher during peak summer and winter months as heating and cooling remain a critical element for many families in more severe climates.
Where Can You Find Incentive Information?
DSIRE provides the most up-to-date information on solar energy incentives. You will also gain access to policies that the United States currently supports for renewable energy. With only your ZIP code, DSIRE will provide you with a list of regulatory and financial incentives that apply to your residence. If you are unable to find any information, our experts can help you find solar power LA incentives as well as other information that will improve your situation.
When Will New Homes in California Require Solar Panels?
California’s new solar panel legislation will take effect in 2020, which means that there is only going to be a small window for new homeowners to take advantage of the various tax credits. As California is one of the most expensive markets to buy real estate and build, Americans who invest in this program will need the incentive at the federal level to recoup such losses as this type of legislature will add $12,000 to building costs.
As solar panels save a homeowner between $10,000 and $30,000 during a 20-year period, there is still value in the investment as long as homeowners take advantage of the credits. Because the federal incentives will end in the next few years, solar energy expansion is expected to quadruple as more families move to solar energy which will create an urgency within the market.