Perhaps you’ve been thinking about purchasing solar panels. Many potential buyers are hesitant as it is a major investment. However, the time to buy solar is now. 2022 is the final year for the 26% tax credit on a solar system. In addition, recently rising energy costs make it clear that investing in solar means investing in your future.
To encourage people to invest in solar energy, Congress passed the Investment Tax Credit (ITC). The ITC allows people to claim a significant portion of the costs of purchasing and installing their solar system as a tax credit. In 2022, that means you can take up to 26% of those costs as a direct credit on your taxes.
Right now, the ITC is set to expire in 2024. While Congress may act to renew it, they could also choose not to renew it. That could mean no tax credits for people installing solar systems. If you install your solar system now, you take advantage of the credit.
For most people, installing a solar system is going to mean installment payments. Generally, the installment payments will be less than what you are saving in energy costs each month. That means that you will not add an additional monthly burden to your finances. As energy prices go up, you will see an increasing return on your investment.
For purchasers who buy in 2022, the tax credit is enough to pay for a few years of payments on your solar system. That allows you to purchase the system without having a negative impact on your budget. You can get the benefits of solar without financial strain. In 2023, the credit goes down to 22%, and it is set to go away completely in 2024.
How do you take advantage of the ITC credit? You need to have your solar system in service by the last day of the year. Since the installation process takes time, that means you want to go ahead and begin the process now to ensure you can take advantage of the full tax credit. Remember this is the last year to get a 26% tax credit on a solar system!
Ready to find out more? Contact us at NJ Solar Power. We can give you an estimate on your system, let you know what parts of those costs are eligible for the rebate, help you calculate potential savings, and give you a time frame for installation.