While the federal solar tax credit will come to an end in a matter of months, homeowners should still be able to use any unused credits after the deadline — with a few key limitations.
Going solar is a great way to save money on home energy and reduce planet-overheating pollution significantly. While using electricity generated by burning fossil fuels contributes to the warming climate, installing solar panels is a clean and renewable energy solution that relies solely on the sun.
In order to take advantage of the federal solar tax credit, homeowners must have their solar panel systems installed by Dec. 31, according to EnergySage. A tax expert told EnergySage that homeowners can claim the unused solar credits at any time moving forward if the system was installed in a timely manner.
"Even if you can't use the full credit immediately, the rollover provision means you'll eventually capture every dollar of savings," according to EnergySage.
However, EnergySage did warn homeowners that they must own their solar panel system to use rollover credits. Those leasing a system will not qualify. For those financing their systems with home equity loans, the tax expert said payments likely don't need to be finished by the end of the year to qualify.
Solar system owners must also owe federal taxes to claim the tax benefit. If your credit is larger than your tax bill, there will be no money back.
Solar installations usually take a few months after signing a contract, so EnergySage suggested homeowners invest in solar sooner rather than later. While no new credits can be generated after the December deadline, the rollover provision allows new solar users to take full advantage of the benefits down the road.
With EnergySage's free tools, the average person can get nearly $10,000 in incentives for solar purchases and installations. One of those tools — the mapping tool — breaks down the average cost of a home solar panel system by state. Additionally, homeowners can compare quotes and choose trusted local installers with the help of an unbiased energy advisor.
Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner. |
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