Up to 18% ROI with a 6 to 8 Year Payback!
A solar power system will dramatically lower or even eliminate your electric bill. In fact, a solar power system typically pays for itself in energy savings after 6-8 years.
As part of the Emergency Economic Stabilization Act of 2008 solar tax credits were enacted, which extended the 30 percent ITC for residential solar property through December 31, 2016. In 2015, legislation renewed these credits for five years with an incremental de-escalation of the credits.
Here are the specifics:
• 2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that in 2017, you can still get a major discounted price for your solar panel system.
• 2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.
• 2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
• 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.
Legislation now allows owners of new solar energy systems to claim the tax credit as soon as the construction begins as long as it is operational by December 31, 2023. Furthermore, the act removes the cap on qualified solar electric property expenditures (currently $2,000), effective for property placed in service after December 31, 2008. It also allows individual taxpayers to use the credit to offset AMT liability, and carry unused credits forward to the next succeeding taxable year.
The following chart is an example based on estimates. Your exact results may differ.
|Solar Power Savings Chart|
|Total Cost of Solar System||$14,000|
|Federal Tax Credit||$ 4,200
|Net Out of Pocket Costs for Solar System||$ 9,800
|Solar Power Savings Chart||Solar Power Savings Chart|
|Average Yearly Electric Bill Before Solar||$2,200
|Average Yearly Electric Bill After
|Average Yearly Electric Bill
|Projected Lifetime Utility Savings
|Estimated Payback Period for Solar||6-7 Years|
|Return On Investment (ROI)||17.8%|