Going solar is not only great for the environment, but it’s great for your finances as well. Did you know there are federal tax credits and NC state tax incentives for residential and commercial solar installations? Our experienced team at Renewable Energy Design Group (RED Group) understands all the intricacies of the solar tax credits and incentives and we are happy to share that information with you in our latest blog.
If you still have more questions about solar tax credits and incentives after reading our blog below or would like to receive your own free, custom solar energy quote, then call us at 877-432-0857 or fill out our contact form.
Federal Tax Credits
The Inflation Reduction Act (IRA), set for passage by the House is great financial news for business owners! The extension and expansion of the Solar Investment Tax Credit (ITC) means eligible commercial solar projects and standalone energy storage would generally qualify for a tax credit equal to the full 30% of eligible tax basis starting in 2022. Stackable “bonus” credits for eligible facilities utilizing US-produced steel, iron, and products and for specified eligible areas could qualify for more than 50% ITC!
The current federal tax credit is also fantastic for homeowners’ solar energy installation investments. The homeowner ITC is also now up to 30% for those who invest in solar panels – and also includes battery storage! Our longstanding solar energy company knows which equipment is not only best for your site and energy needs, but also qualifies you for tax credits. The Inflation Reduction Act provides:
- 30% tax credit for installing residential solar panels between now and December 31, 2032
- 26% tax credit for those put into service between January 1, 2033 and December 31, 2033
- 22% tax credit for systems in service thereafter
Large commercial solar taxpayers may elect to take advantage of the modified and extended production tax credit (PTC) instead of the ITC. PTC compensation at qualifying facilities at a base rate 0.3 cents/kWh – plus up to a 5-fold increase for larger facilities that meet prevailing wage and workforce requirements – are extended to projects beginning construction before 2025. We are happy to connect interested investors with tax advisors with expertise in solar for assistance.
While there are requirements and caps for both the ITC and PTC, the most important takeaway is that recent legislation ensures we can trust in strong federal tax incentives for solar energy and storage for another decade!
State Tax Incentives
One incentive for homeowners in choosing to install a solar energy system is the property tax exemption. Since solar panel installations typically increase property value, there is usually an increase in property tax as well. Luckily, according to North Carolina’s tax laws, 100% of the increase to your home’s value from your solar power system is exempt from property taxes.
Furthermore, North Carolina is one of the states that allows net metering. This means that if your utility participates, you receive a credit on your energy bill when you create more energy in a month than you use. To learn more about net metering, be sure to check out this past blog on the topic.
Go Solar to Save Money Today!
Now that you know all about the amazing tax credits and incentives, are you ready to invest in solar energy? Call us today at 877-432-0857 to discuss your unique solar energy needs and pose any questions you have. Once we know more about your property and project, we will provide you with a free, customized solar energy quote.