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$0 down - Several options available (choose down payment)
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0% increase - No annual rate increases (ask your power company for THAT)
Unlocking Solar Savings: Your Guide to Solar Panel Cost and Financing Options with Shade Screen Solar
Investing in solar panels is not just an eco-friendly choice but also a wise financial move. However, navigating the costs and financing options can seem daunting. That's where Shade Screen Solar comes in, ready to guide you toward affordability and maximize your investment. Our detailed guide breaks down everything you need to know about solar panel costs and the various financing options available, ensuring you're well-prepared to make an informed decision.
Understanding the Cost of Solar Panels
The price of solar panels has dropped significantly over the years, making solar energy more accessible than ever. However, costs can vary based on factors such as the size of your system, the type of panels you select, and your geographical location. Shade Screen Solar's experts are here to help you understand these variables, providing personalized quotes that reflect your specific energy needs and home setup.
Navigating Financing Options
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Solar Loans: Solar loans can make going solar affordable by spreading the cost over time. With various lenders offering competitive rates, Shade Screen Solar assists you in comparing options to find the best fit for your budget.
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Solar Leases: If you prefer not to purchase your system outright, a solar lease might be for you. You can enjoy the benefits of solar energy with little to no upfront cost. Shade Screen Solar will explain the terms, ensuring you understand the benefits and potential limitations.
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Power Purchase Agreements (PPAs): Similar to leases, PPAs allow you to pay for the power generated by the solar panels at a set rate that's typically lower than the utility price. Shade Screen Solar navigates these agreements for you, highlighting how they can offer predictable energy costs.
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Incentives and Rebates: Numerous federal, state, and local incentives can significantly reduce the cost of solar panel installation. Shade Screen Solar is your guide to maximizing these opportunities, including the Federal Solar Investment Tax Credit (ITC), which can cover a substantial portion of your installation costs.
Maximizing Your Solar Investment
Investing in solar panels with Shade Screen Solar means more than just installing a renewable energy source. It's about making a financially savvy decision that pays dividends in the form of lower electricity bills and increased home value. We'll help you calculate the potential savings and return on investment, taking into account your specific circumstances and the incentives for which you qualify.
Why Choose Shade Screen Solar for Your Solar Financing Needs
At Shade Screen Solar, we understand that the financial aspects of going solar are just as important as the environmental benefits. Our team is dedicated to providing transparent, personalized guidance to help you navigate the costs and financing options for solar panels. From initial cost analysis to securing the best financing solution, Shade Screen Solar is with you every step of the way, ensuring your solar investment is both sustainable and affordable.
Embrace the sun's power without the financial worry. With Shade Screen Solar, discover how solar panels can be a cost-effective part of your future, today.
CONTACT US ABOUT OUR SOLAR PROGRAM
And Now...the TAX BENEFITS
Welcome to the world of solar energy, where you not only save on your electricity bills but also get rewarded for being environmentally conscious! One of the most significant incentives for going solar is the Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC). This credit offers a substantial tax benefit of 30% of the cost of your solar energy system, claimable in the year the system is installed.
For instance, if you install a solar energy system worth $20,000, you can claim a tax credit of $6,000 (30% of $20,000) on your federal taxes for that year. This credit is available for both residential and commercial properties.
Additionally, residents can benefit from your state's Solar Tax Credit, which could provide a 25% tax credit on the cost of the solar energy system, capped at $3,500. This credit can be claimed on your state taxes in the year the system is installed.
For example, if you install a solar energy system worth $14,000 in these tax credited states, you can claim a tax credit of $3,500 (25% of $14,000), which is the maximum amount allowed by the state in one year. If more credit is available, it can be claimed in following years as “rollover credits.”
By utilizing both the Federal Solar Tax Credit and your state's Solar Tax Credit, you could see your investment pay off much faster!
In summary, going solar not only helps you save on your electricity bills but also provides significant tax benefits at both the federal and state levels. So, if you're considering going solar, be sure to take advantage of these credits and start enjoying the benefits of clean, renewable energy today!
Solar Tax Credit FAQ:
Most Americans are eligible for the solar tax credit, but there are some key factors you need to know about how it works, what qualifies, and who can take advantage of it before you make the switch to solar.
How the federal solar tax credit works:
Before diving into the solar tax credit specifics, let’s review the basics of how a tax credit functions. If you owe $3,000 in federal taxes but are eligible for a $1,000 tax credit, your tax liability drops to $2,000. Pretty straightforward.
The solar tax credit works similarly. The value of the tax credit you earn is based on a percentage of “qualifying costs” of installing solar panels. For 2024, the solar tax credit is worth 30% of the installation costs. So, if your solar installation cost $20,000, you would be eligible for an income tax credit of $6,000.
Solar systems installed in 2033 will receive a tax credit equal to 26% of installation costs. In 2034, the tax credit will be worth 22%. By 2035, the federal solar tax credit will expire altogether.
This means a $20,000 solar system installed in 2024 would receive a credit amount of $6,000, while a system installed for the same price in 2033 would only receive $5,200.
What if I owe less than my tax credit value?
Any leftover value will carry over and be applied to your taxes the following year.
So, let’s say you install solar panels and get a $6,000 tax credit, but you only owe $4,000 in federal income taxes. That leaves you with $2,000 of your tax credit that will be applied to next year's taxes. The tax credit can be carried forward for a maximum of 5 years.
What if I’m getting a tax refund?
If you had your taxes withheld from your paycheck, you might receive a tax refund. In some cases, too much might have been taken out of your paycheck, and now the federal government owes you a refund.
If this is the case, the federal solar tax credit will be added to your tax refund check. But, only the amount up to what you owed. If you owed $8,000 in taxes, but $10,000 was withheld from your paychecks, you’d be getting a $2,000 tax refund from the government.
If in that same year, you installed solar and got a $9,000 tax credit, you would get an additional $8,000 on your refund check - for a total tax refund of $10,000. The remaining $1,000 from the tax credit would carry over to the next year.
How to qualify for the 30% federal solar tax credit
Most Americans will qualify for the federal tax credit, but there are some cases where you might not be eligible. The eligibility requirements are as follows:
- The system must be installed between 2022 and 2032.
- You must be the owner of the solar panel system.
- You must have a taxable income.
- The solar system must be installed at your primary or secondary residence.
- It must be claimed on the original installation of the project.
Owning your solar system: If you go solar using a solar lease or a solar PPA, you cannot claim the federal solar tax credit because you are not the owner of the solar system. If you purchase solar using a solar loan, you can still take advantage of the tax credit because you are the owner of the system.
What costs qualify for the federal solar tax credit?
Most, if not all, of the costs associated with installing solar panels are eligible to be covered by the federal solar tax credit. Qualified costs include:
- Equipment: The cost of the solar panels, racking, wiring, and inverters.
- Contractor labor: The cost of labor associated with site preparation, installation, and planning, as well as the cost of any permitting fees and inspections.
- Sales tax: Any sales tax associated with the above costs is also covered by the tax credit.
Technically, the tax credit isn't just for solar installations. Other clean energy systems can also get the tax credit, including solar water heaters, fuel cell systems, geothermal heat pumps, and even small wind energy systems!
Are batteries eligible for the federal solar tax credit?
Yes, energy storage is covered by the 30% tax credit. Thanks to the passage of the Inflation Reduction Act, battery systems paired with solar panels in 2022 can get the full 30% credit.
On average, residential batteries cost between $10,000 and $15,000 to install, so you can expect to receive a tax credit between $3,000 and $4,500 for energy storage. If the battery is installed with solar panels, the battery costs will be bundled with the rest of your solar installation costs. If a standalone battery is installed without solar, you will get a tax credit based on the cost of the battery installation.
Starting in 2023, standalone batteries installed without solar will also be able to take advantage of the federal tax credit. Batteries installed after 2023 must also be at least three kilowatt-hours (kWh) in size. Most home storage batteries are around 10 kWh in size, so you likely won't have to worry about the minimum capacity requirement.
How does the solar tax credit work with state, local, and utility incentives?
The federal tax credit isn't the only incentive available to homeowners who switch to solar. You could be eligible for other incentives offered by your state government, or even your utility company. The type of incentive could potentially impact how much your federal solar tax credit will be worth.
The best time to claim the solar tax credit is now
You have about 10 years to take advantage of the full 30% tax credit. But just because you can wait 10 years, doesn’t mean you should. It’s almost always a good idea to make an investment sooner rather than later. Installing solar as soon as possible lets you start saving money earlier, so you can stop paying high electricity bills and start putting your money towards the things that really matter to you.
Not to mention, going solar will never be a better investment than it is right now. Other solar incentives throughout the country could expire well before the federal tax credit. Take net metering, the incentive that pays you the full price of electricity for the solar energy you send to the grid, for example. Utilities across the country are moving away from net metering and paying solar customers less money for solar electricity.
You’ll want to install solar before things like net metering and utility rebates start to disappear to guarantee that you get the best solar savings possible. Use our solar panel savings calculator to see what kind of incentives are available in your area, so you can start saving on your electricity bills. Don’t let the sun set on maximum savings!