Update: The Inflation Reduction Act of 2022 extended the federal solar tax credit. It will remain at 30% through 2032. Learn more here.
Publish Date: October 26th, 2018
Have you been sitting on the fence, thinking about solar, and just waiting for the right time? Well, now is that time! The federal solar tax credit (part of the Residential Renewable Energy Tax Credit) that offers 30% off your home solar installation is dropping at the end of 2019. All homeowners who install a solar panel system by the end of 2019 can still claim the full 30% credit, but that amount drops to 26% in 2020. Taking advantage of the full tax credit will save you an additional $1,000 on average off your solar panel system purchase price. Don’t miss out on these extra solar savings!
History of the Federal Solar Tax Credit
This 30% solar tax credit was established by The Energy Policy Act of 2005 and provided incentives for solar electric and other renewable energy systems, both residential and commercial. The tax credit has been extremely helpful in expanding the adoption of clean solar energy in the US. In fact, solar installations have grown by over 1,600% since the federal solar tax credit was implemented in 2006 – that’s a compound annual growth rate of 76%. Solar savings are popular!
2019 is the Year to Go Solar
With the coming reduction in the 30% tax credit, 2019 is on pace to be a record setter for solar, and we are already beginning to see an increase in demand here at Namasté Solar. If you want to make sure you get the full 30% tax credit, don’t wait – we expect 2019 installation schedules to fill up quickly. Get started today to make sure you can get installed during 2019 and cash in on the full 30% tax credit.
How to Claim Your Solar Tax Credit
Claiming the credit is easy. Simply complete IRS Form 5695 and then add your solar tax credit amount to your standard form 1040. To be eligible for the solar tax credit, you must own your solar panel system instead of leasing it. We do not sell leased systems at Namaste Solar in part because it shifts the benefit of the tax credit from the owner to the installer, and that doesn’t fit with how we run our business.
It’s Easier Than You Think to Go Solar
Home solar systems are only complicated if you decide to go the DIY route, which is not recommended due to the many complexities of doing it well and the lack of warranty support. So how do you go solar? Start by requesting a free quote! We'll come out for a home visit to cover any questions you have, and then you'll ready to start saving with solar. It’s really that simple! We even offer $0 down financing so you don’t have to pay anything out of pocket to make the switch to clean solar energy.
Our professional solar designers will design a beautiful solar panel system that captures the most solar savings possible for you and your home. We’ll also help secure any Colorado solar incentives that are available for you. Then, our teams of highly trained, award-winning solar installers and electricians will install your solar panel system and connect it to the grid. Presto, you’re powered by clean solar energy from the sun!
