Federal tax credits for home solar installations expire at the end of the year, but solar installers have found a way to continue passing savings on to consumers.

The scoop

A homeowner posted to Reddit's r/solar community seeking advice on a proposal from their solar installer.

"I'm reviewing a proposal from a well-established SoCal solar installer," the user wrote. "But they're offering something I've never seen before."

According to the post, the installer offered to retain ownership of the homeowner's solar setup for five years, in exchange for a whopping 30% discount on equipment.

It's not too good to be true. Individuals might no longer be able to claim the Residential Clean Energy Credit, but commercial businesses still can — and their savings increase the longer they possess the solar panels and battery system. In other words, companies get a tax break for holding on to solar installations, which allows them to offer lower upfront costs.

If you've decided to switch to solar but you're not sure where to start, check out TCD's Solar Explorer for help understanding your options and saving up to $10,000 on installations.

For example, Palmetto's LightReach solar leasing program is one great option, as it offers a $0-down subscription plan that can cut your utility rate by up to 20%. You can also maximize your solar savings with EnergySage, which lets you compare competitive bids from vetted installers and offers information on solar incentives.

How it's helping

By making solar installations more affordable, this hack has the power to help homeowners reduce long-term energy costs while creating lasting, positive environmental change. The benefits of installing solar panels range from saving money on utilities to keeping the lights on when storms damage power lines (when paired with battery storage).

And, because solar panels harness clean energy from the sun, they don't require burning dirty fuels that contribute to the warming of our planet.

Plus, by pairing solar panels with other electric appliances, you can drive your utility costs even lower. TCD's HVAC Explorer can help you make upgrades that work with your home and budget. And you can get help funding those upgrades by using the Palmetto Home, which allows you to unlock up to $5,000 in rewards for home upgrades by taking simple steps in your everyday life.

What's the biggest thing stopping you from going solar? The cost 💵 My roof 🏠 My HOA 🙄 I don't own a home 🤷 Click your choice to see results and speak your mind.

What everyone's saying

Reddit commenters explained how the scheme mentioned in the original post can help homeowners save money on solar, and they applauded the OP's solar installer for passing along the savings.

"The company installs solar, owns the system, and claims the commercial tax credit on that installation," the top commenter said. "There are specific time periods the company must keep the solar. For example, if the company stops owning the solar between the first and second year, the company must pay 80% of the tax credit back to the IRS. After the fifth year, that payback percentage drops to 0%, which is why the company has a 5-year period."

"It's 100% legitimate," another commenter wrote.

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