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June 8, 2022
Whether you are looking to install solar panels on your home to reduce your carbon footprint, your energy bills, or a combination of both, knowing how to afford solar panels will be the first step to take if you are serious about solar.
Perhaps you’ve heard about the tax savings, or you are looking for a financing plan for your solar panels. Whatever the case may be, Greiner has you covered when it comes to the details surrounding solar installation throughout Dixon, Vacaville, and West Sacramento.
Solar Tax Credit: Time Is of the Essence!
The most time-sensitive way to reduce your solar installation costs is the Federal Investment Tax Credit, also known as the ITC or solar tax credit. This tax credit allows you to reduce how much you’ll pay in taxes at the end of the year you installed solar—but this tax credit won’t last forever.
As of 2022, this tax credit allows for a tax deduction equal to 26% or all installation costs for systems installed before 12/31/22. Meaning for every $10,000 spent on installation, you get to deduct $2,600 from what you pay in federal taxes. If the deduction covers more than your federal taxes that year, you can roll the remainder over for one more year.
For systems installed after 12/31/22, that percentage drops down to 22%, and after 12/31/23, this tax credit is no longer usable for homes and other residential properties.
Just like many other major purchases and upgrades, you don’t have to come up with the entire cost of installing solar all at once, you can finance it over time with monthly payments. This gives you all the benefits of solar panel ownership for an affordable rate.
Will Solar Panels Save You Money?
Now that we are more familiar with the financial options and savings to be had when it comes to installation costs, will a solar PV system actually save you money? While the specifics will change from home to home, here at Greiner we can pretty confidently say yes—solar will save you money.
The average warranty on solar PV panels is 25 years, but homeowners often see a return on investment in less than ten years for systems that were paid for outright. Even if you finance your system, the monthly payment is a fixed rate, meaning you know exactly what your energy costs could be for the life of your system.
No matter how your system is purchased, once it is installed you can sit back and relax as energy prices continue to rise and fall, knowing that the higher California energy prices go, the more money you save!
Get Started on Solar With Greiner!
Installing solar on your Davis, Vacaville, West Sacramento, or Dixon area home takes some financial and logistical prepwork to ensure that you know how much you’ll benefit from the process of installing solar.
As heating, cooling, and solar experts, our specialty is designing and installing highly efficient solar PV systems in homes that are comfortable without wasting excess energy. Get in touch with the team at Greiner today to get started on your solar evaluation!