Do You Get Money Back from the Solar Tax Credit?

With plenty of sunny days throughout the year, Monterey Bay is a perfect candidate for residential solar installation. If you’ve been considering solar panels for your home, there’s no better time to maximize your savings. With incentives like the Inflation Reduction Act solar tax credit, converting to clean, renewable solar energy is more affordable than ever.   

Premo Solar is a premier solar installer serving San Benito and the surrounding areas. We install all types of solar systems—including rooftop and ground-mounted solar, off-grid solar, and solar batteries. While we can’t file the paperwork for you, we can offer this guide to help you understand what’s included in the solar tax credit and what services qualify. 

How the Solar Tax Credit Works

Also known as the Residential Clean Energy Credit, the solar tax credit reduces your federal tax liability by 30% of the total cost of solar installation. It works as a dollar-for-dollar credit with no annual limit and was designed to incentivize renewable energy solutions for your home. If the credit is worth more than what you owe in federal taxes, the remainder will be rolled over to the next year. However, the solar tax credit is non-refundable. To qualify for the solar tax credit in 2023, you must:

• Own your solar system (financing included, subtracting interest)
• Install the panels on a home you own in the US 
• Have a taxable income

We recommend talking with your tax professional about how the Inflation Reduction Act solar tax credit will affect your tax returns.  

What’s Included in the Solar Tax Credit

In order to qualify for the solar Residential Clean Energy Credit, all installed equipment must be new. While the credit covers most of the costs involved with a solar system—including the installation—it does not cover any building components that are needed for building a home, like traditional shingles. The IRA solar tax credit covers:

• Solar Photovoltaic (PV) panels & inverters
• Mounting equipment 
• Solar batteries (with a minimum capacity rating of 3 kWh)
• Installation & permitting costs 

Start Your Clean Energy Benefits Now With Premo Solar

With increasing electricity rates, the benefits of going solar greatly outweigh the costs. Plus, the sooner you invest in solar for your Santa Cruz home, the sooner you get to enjoy the benefits of clean energy, such as:

• Reduced or eliminated electricity bills
• Reliable power
• Increased home value
• Lower carbon footprint

Premo Solar uses the highest quality solar equipment, like SunPower solar panels and Enphase microinverters to optimize your electricity production. The team of experts at our sister company, Premo Roofing, can even help with making sure your roof is properly equipped to handle solar panels before installation, making the entire process seamless.

Install solar and start saving. Call 831-901-3352 or contact us online today to learn more.