Add a Solar + Battery Storage System by 2022 & Save with the Federal Solar Tax Credit
If you’re thinking about adding a solar + battery storage system, now is the time to do it. If you install a solar + battery storage system by 2022, you may be eligible to claim a 26% solar tax credit. Also known as the investment tax credit (ITC), this incentive is applied to your federal tax liability, or the money you owe the IRS at income tax time. The ITC credit is available in every state, helping the average customer deduct nearly $9,000 off the cost of their solar + battery storage system installation* – but the credit steps down gradually each year. The transition to solar doesn’t always happen quickly, depending on factors such as your solar provider, permitting and your utility provider. Start planning now, and you won’t have to worry about tight schedules and long project timelines. Get your solar + battery storage system installed by the end of the year so you can power your home, save MONEY and be PREPARED in the event of an electrical outage.
* “Using the solar investment tax credit for energy storage,” EnergySage. January 11, 2021
Local Incentives to Save Money by Going Solar
On top of the federal tax incentive, there may be state and city-level programs available to encourage solar + battery storage adoption. In most cases, state and local programs stack with the federal incentive, so you get to double-dip on your savings. Be sure to do your research and talk to your installer about possible local incentives so that you can take full advantage of any available savings.
Lower Your Energy Bill with Net Metering
Net metering (also known as net energy metering or NEM) is a solar incentive that allows you to store energy in the electric grid. When your solar panels produce more electricity than you need, that energy is sent to the grid in exchange for credits. Then, at night or other times when your solar panels are underproducing, you pull energy from the grid and use these credits to offset the costs of that energy.