Consumer reports recently released a new article outlining how to take advantage of the diminishing federal tax credit for solar. The federal credit is still available next year, both for existing homes and new construction. It’s just slightly smaller: 26 percent of purchase and installation costs vs. 30 percent for 2019. For 2021, the credit will be worth 22 percent.
After that, it really does expire for individuals. (Owners of a home-based business can still get a 10 percent business tax credit for systems installed in 2022 and after.)
Prices vary by region and manufacturer, though. For my 1,700-square-foot home, I was told I’d need 388 square feet of solar panels, and my total cost would be $31,840, or $23,562 after my tax break.
Why opt for solar energy? You’ll use less energy from your local utility, which can save you a chunk of money, and it’s better for the environment because it reduces demand for fossil fuels. In some cases you can sell the utility the excess energy that your system produces.
A study by Sense, a company that produces home-energy monitoring devices, reports that in states with the most solar homes, residents with solar save, on average, $1,075 annually. Utah residents generated electricity equal to 84 percent of their utility bills. Californians offset 75 percent of their bills.
Read the full article here: https://www.consumerreports.org/solar-panels/how-to-get-a-solar-tax-credit/