Publish Date: July 14th, 2022
Blog Updated: August 2022
Namaste Solar is officially sold out for home installations in 2022 and we’re now quoting systems for 2023 install dates. We saw unprecedented demand this year and are so excited to be serving so many Colorado families. Thank you for choosing us as your local solar installer!
The Federal Tax Credit
One of the drivers for the high demand this year was the investment tax credit (ITC) for solar. The ITC, also known as the federal solar tax credit, was first enacted in 2005 for both residential and commercial solar installations. This credit has helped spur the growth of solar installations and increase the affordability of solar as the industry matured. Congress has extended the credit multiple times and with the Inflation Reduction Act of 2022 it is set to be increased once again!
At the beginning of 2022, the tax credit for new residential and commercial solar installations was 26% of the cost of the system. This was set to drop to 22% in 2023 before it expired for residential systems in 2024 and dropped to 10% for commercial systems. Now, the credit is at 30% for both residential and commercial systems through 2032. The residential systems that were installed earlier in 2022 will also be credited at 30% rather than 26%.
How to Qualify for the Tax Credit
It is important to note that only new systems are eligible for the credit, and for home solar, the system must be installed and “placed in service” during the tax year. If you have paid for the system but it has not been installed, you will not be eligible to claim the credit that year.
Additionally, you must own the system either through a cash purchase or financing; if you are leasing a system, then you are not the owner and will not qualify. You can read more about the requirements and how to claim the tax credit at energy.gov.
Solar in 2023
If you are thinking about solar for your home, don’t wait too long to start the conversation. The next 10 years will hopefully be huge for solar as the Inflation Reduction Act makes big impacts on incentivizing solar, going electric, and combatting climate change. Namaste Solar has seen the demand for solar steadily increase over the years (we sold out for this year in July!), and we expect next year will have even higher demand.
We are currently quoting for 2023 installation dates. Ready to see what solar could look like for your home and how much you could save by owning your power? Reach out to get a no-pressure quote!
Thanks for Making Us Your Top Local Solar Installer
Thank you to all our customers over the years who have chosen us to be your local solar installer. We are proud of the 17 years we’ve been serving Colorado and the thousands of solar installations we’ve put in place. When we sold out for the year in July we saw it as a testament to the demand for solar energy as well as the support for the transformative business practices of Namaste Solar. We wouldn’t be here without everyone who has supported us along the way – thank you!
Recommended Reading
- What Does It Mean to Work for a B Corp?
- Community Profit Sharing at Namaste Solar
- Making a Difference, One Solar Panel at a Time
