The federal Solar Investment Tax Credit (ITC) is a one-time credit that allows you to deduct a percent of the cost of installing a solar energy system from your federal taxes. That percent deduction comes back to you CASH BACK, meaning you do with it, what you want. Of course, in the following examples, we apply this to your solar financing, but maybe you’d rather take a vacation? Or pay other bills? Up to you.
Thanks to the spending bill that Congress passed in 2015, the tax credit has been extended until 2021. However, the rate goes down in 2020 and again in 2021 before disappearing altogether for residential consumers.
Let’s break it down:
| 2019 | 2020 | 2021 | 2022 | |||||
| Initial Quote | 30% Rebate | What you pay | 26% Rebate | What you pay | 22% Rebate | What you pay | 0% Rebate | What you pay |
| $12,000 | $3,600 | $8,400 | $3,120 | $8,880 | $2,640 | $9,360 | $0 | $12,000 |
| $20,000 | $6,000 | $14,000 | $5,200 | $14,800 | $4,400 | $15,600 | $0 | $20,000 |
| $35,000 | $10,500 | $24,500 | $9,100 | $25,900 | $7,700 | $27,300 | $0 | $35,000 |
Obviously, the bigger and more expensive the system, the more you save. But that doesn’t mean smaller systems won’t pay off!
Here are some reasons to go solar no matter what size system you need:
- San Diego solar is a no-brainer! San Diego consumers have one of the fastest ROI (return on investment) in the country.
- Having a solar power system increases your property value.
- You won’t pay an electricity bill until the end of the year.
- Purchasing or financing solar means you can lock into a FIXED rate instead of enduring SDG&E’s consistently increasing rates. And you choose your payback time – 3, 5, 8, 10, 20 years – when you use a recommended loan option like Wheelhouse.
- And if that’s not enough, solar is just plain good for the environment. With a worldwide push to convert to renewable energies, solar is the future.
Take advantage of the last year for your 30% tax credit, ask Sungenia how much you could save.