There are many good reasons to use solar energy in your home or business. Many Bay Area homeowners have a solar system installed to protect themselves and their families from rising energy rates. While it is difficult to forecast exactly how much electricity costs will increase or how fast, one thing is for sure: they will continue to rise. In contrast, an investment in solar energy for your home or business not only lowers or even eliminates monthly electricity costs entirely, it can also increase a home’s property value and lower a business’s operating costs. A third and very important financial incentive is the generous solar tax credit from the federal government.
The solar tax credit allows the homeowner to reduce the amount of income tax that they would otherwise have to pay to the federal government. This credit is good for 30 percent of the owner’s investment in their solar system, including solar panels, a charge converter, a battery, and an inverter, but only for the next three years. The credit will be reduced to 26 percent in 2020 and 22 percent in 2021. After 2021, the solar tax credit for residential customers will be eliminated entirely. While the potential exists for the credit to be extended, many homeowners considering solar energy plan to install their systems in the next few years to take advantage of the credit.
For commercial companies looking to go greener, they can qualify for up to 70% off with tax incentives for solar energy. Not only will you qualify for a 30% federal tax credit, but it can accelerate the depreciation of your solar system for 5 years. These tax incentives are equivalent to 60% -70% of the cost of the system, so you will only need 3-4 years of energy savings to recoup your entire investment.
In addition to the financial benefits of the solar tax credit, many people choose solar because they feel that solar is a more environmentally responsible solution. Solar energy is sustainable and renewable. Solar energy provides a zero-emission way to power buildings and appliances, heat water, and refuel electric vehicles. The more popular and pervasive rooftop or carport solar panels become, the more they reduce the load on coal-burning power plants.
With buildings accounting for 38 percent of all carbon emissions in the US, solar energy can significantly lower our carbon footprint. A typical residential solar panel system will eliminate three to four tons of carbon emissions each year, the equivalent of planting more than 100 trees a year. Not only is solar power a great way to go green, but taking advantage of the solar tax credit – before it expires – is a great way to save some green.