The Solar Tax Credit, also known as Investment Tax Credit (ITC), is a Federal Financial Incentive for residential solar projects administered by U.S. Internal Revenue Service. It was Established by the Energy Policy Act of 2005. The credit was extended for eight-years to December 31, 2016.

Late 2015, the tax credit was extended for a few more years in compliance with the following schedule.

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022

Currently, a taxpayer may claim a credit of 30% of qualified investments for a solar power system that powers up a dwelling unit located in the United States that is owned and used as residence by the taxpayer. Click HERE  for more information.

The Solar Tax Credit has helped qualified homeowners to save a lot more on their solar investment. Homeowners pay $0.70 for every dollar just because the ITC covers 30% of the qualified investments.

This incentive is scheduled to decrease and finally will go down to 0% within the next few years. With that in mind, it is in the best of homeowner’s interest to act now to install a solar power system to lower their cost of Electricity. Homeowners need to start the process by finding an unbiased Energy Advisor who has access to EAH proprietary platform to find the best solar installer paired with the homeowner’s needs and goals — with expert installation and at  competitive price. 

RenuLogix is the end-to-end solar hardware and software supplier with a huge network of local solar installation partners.