The New Tax Advantage Of Being A Solar-Powered Home Owner!
Key Takeaways:
A solar system is a great way to reduce your carbon footprint and monthly bills.
The current administration has locked Fed. Tax creds from 26% to 30% till 2022 on installing a residential solar system.
Net metering is an excellent option if you want ROI (Return on Investment), and PPA (Power Purchase Agreement) is great for people who don’t have money to pay for the upfront cost.
The average cost of solar system installation is $15000. It would help if you also considered maintenance charges.
Energy Advantage Roofing & Solar are capable contractors in Denver, Co, who are up to the installation challenge!
Living in Colorado has many upsides to it; one of the newest is the solar tax credit! It’s a great investment to save money and help the environment! Solar power is a renewable energy source that doesn’t produce pollution or greenhouse gases. As solar energy tech continues to improve, the cost of installing solar panels has decreased significantly.
If you’re considering going solar, now is a great time to do it! In addition to the benefits, you can play your part to help create a cleaner, greener world for future generations.
In this blog post, we’ll explore the trending tax advantage of being a solar homeowner!
What’s the Solar Tax Advantage?
When it comes to solar energy, one of the big questions is always about the cost. Solar panels aren’t cheap, and installing them can be a significant investment. However, several tax advantages can make solar an attractive option for homeowners and businesses.
For example, many jurisdictions offer rebates or tax credits for solar installation. This can offset a significant portion of the upfront costs, making solar more viable.
In addition, many utilities offer net metering programs, which credit customers for the excess electricity generated by their solar panels. This helps to offset the costs of installation and operation further.
With these financial incentives, solar is becoming an increasingly attractive option for those looking to save money and reduce their carbon footprint.
Does Colorado Have Tax Credits for Solar?
The 26% federal tax credit was available in early 2022 for newly purchased home solar systems and was meant to cover solar installations by December 31, 2022.
To receive the federal solar tax credit, one must install their solar energy system by December 31, 2022. After that, the credit drops to 22 percent in 2023 and expires entirely in 2024.
But there is one good news; the reigning Biden administration has locked in at 30% tax credits for new solar owners. So, it’s best to start your solar savings at this opportune moment before high demand & low supply get in the way of your plans to go solar!
What Are the Tax Benefits of Going Solar?
The federal tax credit is not the only tax incentive available to those who go solar. Many states, utilities, and local governments offer solar incentives through rebates, grants, and tax breaks. These incentives can significantly reduce the cost of going solar.
Colorado offers a sales tax exemption for the purchase of solar energy equipment. This exemption can save you up to 3% on the cost of your solar panels and other equipment.
These incentives make Colorado an attractive state for solar power. If you’re considering going solar, be sure to check out the incentives that are available in your state.
Net Metering and Power Purchasing Agreements
If you can’t pay the upfront cost or want to have some return on your investment, you can always opt for net metering or PPA.
Net metering is one of the most popular advantages of being a solar-powered homeowner. Net metering allows you to sell off any excess power your solar panels generate back to the utility company. This can give you a nice little boost in income and offset any future electric bills.
Another excellent option for solar-powered homeowners is a power purchase agreement (PPA). With a PPA, you can enter into a deal with a solar company to have them install and maintain your solar panels. You sign the agreement to purchase the electricity generated by the panels at a fixed rate, usually below the current market price. That helps you save a lot on your electric bills and is a hedge against future price increases.
The Cost of Solar Panels
The cost of solar panels decreases significantly with time. In recent years, going solar has become more affordable than ever..
The average solar system cost in Colorado is $15,000 after rebates and incentives. This reflects a price decrease of nearly 50% over the last five years.
Read: Get an energy audit before going solar.
With the cost of solar system dropping & the availability of attractive incentives, there’s never been a better time to go solar in Colorado.
If you decide to switch to solar, you need to get several quotes from different contractors. Prices can vary, so shopping around is essential. You can also check our cost calculator for a more accurate cost estimate.
In addition to the upfront cost of solar panels, there are also a few other costs to consider, such as:
The cost of batteries (if you’re not connected to the grid)
The costs of an inverter system
The cost of installation
The cost of permits and inspections
The cost of solar & roofing maintenance, replacement and repairs
Once you’ve installed your solar system, you’ll see immediate savings on your electric bill.
What Are the Monthly Savings With Solar Panels?
The estimated average monthly savings is $69, or about $830 per year. But your savings continue to grow as utility rates increase.
There are also federal and local solar incentives that can further offset the cost of going solar. The new federal solar tax credit allows you to deduct 30% of the price of your solar system from your federal taxes. And many cities and counties in Colorado offer additional rebates and incentives for going solar.
Conclusion
When you factor in all of these financial benefits, it’s easy to see why going solar is a wise investment. You get an ROI (return on your investment) through these tax breaks and incentives, as well as net metering. PPA is another option to take full advantage of solar power without purchasing the system and paying the hefty sum.
So, if you’re considering going solar, take advantage of all the significant financial benefits available.
Save up to 40% on your energy bills with Energy Advantage Roofing and Solar! Our solar installation services in Denver, CO, are designed to meet your specific needs – so don’t hold back and switch to solar!
