Solar investment tax credit extended; What this means for you
- Solar affordability
Last year ended with great news for solar!
The federal government provides a tax credit to homeowners who buy solar systems. Homeowners who installed solar in 2020 were eligible for a 26% tax credit. If you installed a solar system that cost $10,000, you would receive a $2,600 credit against your tax liability.
This credit was set to lower to 22% for systems installed in 2021. It was set to expire in 2022.
But Congress stepped in and included an extension of this tax credit as part of the federal budget bill.
What this means for prospective solar owners
If you buy a solar system in 2021 or 2022, you will still be able to take the tax credit at 26%. If you go solar in 2023, you will be eligible for a 22% tax credit. The credit expires after 2023.
This extension means you could earn several hundred dollars more in tax credits.
What solar supporters can do next
Tax credits are only one way to help more Americans go solar. Congress needs to do more.
Congress should set a goal of creating 30 million new solar homes (one in four U.S. households). This will help American families save money, create jobs, fight climate change, and address energy injustice.
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