Solar News & Information
The Federal Investment Tax Credit Is Extended
January 5, 2021
The U.S. solar industry got welcome news in late December, 2020, when the federal solar investment tax credit (ITC) was extended. The ITC was initially going to be reduced a second time on schedule at the end of 2020. The extension will provide an extra incentive for going solar until 2023. Solar buyers now have another useful incentive which makes a solar energy system investment even more financially feasible.
Here’s a quick breakdown of how installers and homeowners can benefit:
The ITC Explained for 2021 Moving Forward
Late in 2020, a $US2.4 trillion spending bill and COVID stimulus package passed the U.S. House and Senate. Days before the year’s end, the president signed the bill into law. The stimulus included the vital and overdue changes to a range of clean energy incentives.
Created over a decade ago as a 30% credit, it has been the most important driver for the current solar revolution. By some calculations, the installed solar capacity has grown by 10,000% since the inception of the ITC.
To learn more about the ITC and all solar energy incentives, visit our Residential Incentives page.
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2021
The extended ITC maintains the 2020 level of credit, at 26% of the total investment cost. This will be a net gain of 4% over the earlier schedule.
2022 & 2023
The extended ITC continues the level of credit at 26% of the total investment cost. This will be a significant gain over the previous schedule which eliminated the credit for homeowners.
Improved Solar Energy Value for Massachusetts Homeowners
Prior to this modification to the ITC, homeowners going solar in 2021 were eligible for a 22% tax credit. This additional 4% now allowed will mean more money saved, and it’s not just peanuts! In Massachusetts the average rooftop solar energy system size is approximately 9 kW. The ITC continuation puts anywhere from $900 to $1,100 additional dollars back into the homeowner’s pocket. That’s the equivalent of 5 to 8 months of free electricity for the average Bay State home.
Contact Us with questions or to see exactly how solar power will work for YOUR home, saving you thousands. It’s a free evaluation with absolutely no obligation.
