Are DIY Solar Power Systems Eligible for Financial Incentives? Posted on 27 May 09:00
By going the do-it-yourself route, you only pay for your photovoltaic panels and other hardware components. Not having to pay labor costs to a professional contractor means you can adopt solar technology for less.
But did you know that’s only the beginning of your savings?
Just like professionally installed photovoltaic arrays, DIY systems are eligible for all the same federal, state and local financial incentives. These tax credits, grants and rebates can save you thousands.
Federal Tax Credit for DIY Solar Power Systems
Once your photovoltaic system is up and running, it will be eligible for substantial federal tax incentives. On your next income tax return, you’ll be able to claim up to a 30 percent reduction in your tax liability, based on the total system costs. If you don’t use the entire amount in the first year, you can roll it over.
DIY photovoltaic systems that are placed in service by the end of 2019 can claim the full 30 percent credit.
However, if yours isn’t completed until 2020, you’ll only be eligible for a 26 percent credit. Wait until 2021, and you’ll be eligible for only 22 percent. After 2021, the federal solar tax credit for residential systems will be eliminated.
As you can see, it’s important to get your system up and running ASAP, to maximize your savings.
State and Local Incentives for DIY Solar Panel Systems
Grants, credits and rebates on the state and local levels can bring down the costs even further.
Funded by the U.S. Department of Energy, DSIRE is the most comprehensive source of information on financial incentives for going solar. Simply click your state on the map and you’ll see a current list of every available incentive, along with instructions and eligibility details.
Need Help Applying for Incentives for DIY Solar?
OK, so the financial incentives for solar panel systems are easy to find, but that doesn’t mean applying for them is easy. The IRS paperwork can be complicated, and if you make a mistake, you may not qualify for the full credit.
To guarantee that your paperwork is filled out properly, you may wish to have personalized assistance from a professional. You could hire a tax expert, of course, which is always a wise course of action if your taxes are complicated.
Or, you could buy your DIY solar kit from a company with experience in completing the solar tax credit paperwork.
Visit our online solar superstore today to learn more, and to order your simple-to-install DIY solar kit.