A Beginner’s Guide to Federal Tax Credits for Solar and Energy Storage Rebates
By Brian Wolfson, sonnen Channel Specialist
Are you thinking about a clean energy investment in rooftop solar? Or are you considering a rechargeable home battery to get more out of the solar power you generate? For 2020 residential solar installations or home battery additions, you can deduct up to 26% of the cost from your federal income taxes, dollar-for-dollar! There’s no better time than now to invest in renewable energy for your home. Next year, the residential credit drops down to 22% before disappearing entirely in 2022. Here’s some background:
History of the Investment Tax Credit
The Investment Tax Credit (ITC), also referred to as the federal solar tax credit, is one of the most fundamental federal incentives fueling the exponential growth of the solar and energy storage industries in the United States over the last 15 years. What began as a 30% tax credit for residential and commercial solar energy system installations in 2005 under the Energy Policy Act was extended in 2006 via the Tax Relief and Health Care Act, in 2008 via the Emergency Economic Stabilization Act, and again in 2015 via the Omnibus Appropriations Act. However, this last extension was different. As it stands, the residential ITC is phasing-out through 2022.