Taking Advantage of Solar Tax Incentives in 2024
Most people know that solar energy is an excellent way to reduce your environmental impact and lower energy costs. What you might not know is that through the Inflation Reduction Act, you could qualify for some significant tax incentives that could mean big savings on your solar installation.
We’ll help you understand these tax incentives and provide a step-by-step plan to take full advantage of them.
01. Understanding Tax Incentives
The Inflation Reduction Act of 2023
The Inflation Reduction Act of 2023 is a significant force driving down the cost of solar panel installation. By extending the Solar Investment Tax Credit (ITC) to 2032 and restoring it to its original 30% value, it provides homeowners with a substantial financial incentive to invest in solar energy.
Solar Investment Tax Credit (ITC) Extension
The ITC, which was initially set to decrease to 23% in 2023 and 10% for commercial use in 2024, remains at 30% for residential solar installations until 2032. This extension ensures that solar power remains a cost-effective option for homeowners.
02. Assessing Your Eligibility
Federal Requirements
Ensure that you meet federal requirements for the ITC. Generally, your solar panel system must be installed on your primary residence and meet specific efficiency standards.
Professional Consultation
We always recommend you seek advice from a tax professional to ensure you understand and meet all tax credit requirements. They can help you maximize savings and navigate potential complexities.
03. Selecting the Right Solar System
Calculate Energy Needs
VI Solar Technologies can assess your energy consumption and determine how much you’re interested in offsetting with solar power. This information helps us size your solar system appropriately.
Solar Panel Options
We’ll give you options. Simply select from our range of solar panel types, brands, and warranties to choose the best option for your needs and budget. Our high-quality panels offer longer lifespans and higher efficiency.
Gather Multiple Quotes
Obtain quotes from multiple reputable solar installers to compare costs and services. Yes! We’re recommending you speak with our competitors. We’re confident that the value you receive from working with our team will make VI Solar Technologies stand out as the clear choice.
04. Solar Panel Installation Process
Hire a Qualified Installer
Choose a licensed and experienced solar panel installer to ensure a professional and efficient installation.
Secure Necessary Permits
Ask your installer if they’ll obtain all required permits, ensuring your installation complies with local regulations. VI Solar Technologies handles all the details of permitting and procurement.
Installation and Inspection
Once the necessary permits are secured, its time to set up your solar energy system. Plus, a final inspection will confirm that everything meets our rigorous safety and regulatory standards.
05. Claiming Tax Incentives
Complete IRS Form 5695
To claim your federal tax credit, complete IRS Form 5695 when filing your annual taxes. Keep all relevant receipts and documents for your records.
Maximize Tax Credits
Consult with a tax professional to understand how tax credits function and how much you can claim. A certified tax consultant can help you take full advantage of the available credits when filing your taxes.
06. Maintaining and Optimizing Your System
Regular Maintenance
Scheduled maintenance is crucial to keep your system performing optimally. Schedule maintenance with VI Solar Technologies to regularly clean your solar panels, check for damage, and perform inspections as needed.
Monitor Energy Production
Enjoy the ease of monitoring your energy production and savings from any location in real-time.
07. Additional Resources
For more information and assistance, explore the following resources: