Below is a guide to the most important tax incentives available for your clean energy investment(s). Note that Maine Solar Solutions does not provide tax advice and this is for informational use only. We strongly recommend you work with a professional tax preparer.
Solar electric systems qualify for a 26% federal tax credit in 2021. This applies to both residential and commercial solar PV systems. This credit is a dollar-for-dollar tax credit and will reduce the amount of tax owed by the system owner before any deductions are applied.
BATTERY BACKUP: Batteries that are connected to a solar array and recharged by solar also qualify for this credit, per an IRS letter released in 2018 (https://www.irs.gov/pub/irs-wd/201809003.pdf).
Owners of residential and commercial solar can still deduct 26 percent of the cost of the system from their taxes.
2023: Tax Credit Drops
Owners of residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
2024 and onwards: Expires
There will no longer be any federal credit for residential solar energy systems. Owners of commercial solar energy systems can deduct 10 percent of the system’s cost from their taxes.
If you’re considering solar panels, still make the move early
If you’re considering installing solar panels and want to get it done before these tax credit changes, we still recommend starting the process early.
Because solar power is an industry that requires skilled workers it is very important to find credible and reputable solar companies with licensed electricians to work with. As interest in solar grows, work can stack up for months at a time and you want to get on the schedule before we are all completely booked.
Contact us today for a spring or early summer 2021 installation as our calendar fills quickly. Our personalized solar site assessment and consultations are educational and always free, and we offer new low-interest financing plans enabling you to go solar with no upfront cost.