The Future of Solar Energy Rebates

The Federal Solar Rebate

The Uncertain Past of Solar Rebates and the Very Clear Future

Solar energy offers many benefits. Homeowners can save money monthly by decreasing or eliminating their electricity bill. In some states, electricity companies pay homeowners for energy that is fed back into the grid (we think it's about time they started to give a little back). Solar system owners give back to the environment by reducing their carbon footprint.The best by far however, are the solar energy rebates that homeowners enjoy during the all dreaded tax season. In 2015, the Federal Solar Rebate’s future was questionable at best, leaving many who were planning on buying a system frantic to finish installations before the close of 2016.

Luckily, Congress extended the Federal Tax Credit by five years. The 30% tax credit will be extended for the next three years (December of 2019). It will then drop to 26% by the end of 2020, and 22% in 2022. After 2022 homeowner owned systems will no longer receive the residential tax credit, and commercial installations will receive a 10% credit. All is not lost for homeowners after the end of 2022 however, as third party owned systems (those under financing) will share the 10% tax credit enjoyed by commercial systems.

Continued Solar Solutions

Although the drop in percentage is not ideal, due to the fact that the tax credit was in danger of being eliminated altogether, we are delighted to see that the credit will continue. We further project that the cost of solar systems will continue to decline, (although we appear to be approaching the floor, as manufacturers will soon encounter the cost of raw materials to produce various solar components). Companies such as SolarWorld, Canadian Solar, Panasonic and Trina Solar have already begun to offer high efficiency modules with higher watts. This will decrease the number of solar panels a homeowner will need to completely meet their energy costs and save them both time and money.

We believe that solar offers an important investment for both homeowners and the environment respectively, and are delighted that the future of solar continues to look bright. As the industry changes we will remain dedicated to ensuring that homeowners, and installers receive the best deal possible. Keep an eye out for our solar financing options that will be released later this year in preparation for the year 2022. To begin research on your home solar system, check out our solar panel kits.

If you need help getting your tax credit started, please check out our solar rebate guide to get started on both the federal and state level.