As a solar installation company, we’re obviously interested in helping people see the benefits of solar energy. The average financial savings on the household energy bill comes out to about $1,300 annually – obviously significant – and there’s also the reduction of fossil fuels the household uses.
But what are some of the other benefits of going solar in 2023?
Marketwatch reports on the changes to the Federal Tax credit:
The federal solar credit gives you back 30% of your solar project costs as a tax deduction for the year you install panels. In other words, the ITC provides a tax credit of $300 for every $1,000 you invest in residential solar panels, battery systems and other renewable technologies. So if you spend $30,000 on a 10 kW solar system, the federal tax credit is equivalent to $9,000 tax credits.
Keep in mind that the ITC is a tax deduction, not a refund or rebate. If your tax burden is not high enough to claim the benefit in a single year, you can roll over the unused difference to the following year.
There are also state and local incentives available. In our previous blog about avoiding solar scams, we talked about researching what these incentives are before depending on them. Here is a link to a comprehensive database of green energy incentives nationwide that you can check out.
Does Going Solar Increase the Resale Value of Your Home?
The real estate experts all agree: having a solar system installed will increase the value of the home. Potential buyers appreciate the benefits of energy independence, and are willing to pay up for it. Rocket HomesSM data for the full year 2021 showed that homes with solar panels spent 13.3% less time on the market and were 24.7% more likely to receive an offer over asking.