The solar Investment Tax Credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar. On leased systems, SunPower® collects this incentive and passes the savings on to the homeowner. Don’t wait, the sooner you go solar, the more you save!
*Ask your representative about which incentives you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
As if the federal tInvestment Tax Credit wasn’t enough, there are many local state and utility incentives that homeowners may qualify for depending on your address. For example, if you add a battery, it is likely eligible for the federal Investment Tax Credit also, as well as a special rebate if your utility is offers one. As these incentives are always changing, please consult with your energy consultant about which incentives you’re eligible to receive and your tax advisor on your ability to claim these nonrefundable credits.
Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax basis investment can be deducted from the sales price, reducing the amount of the price that is counted as profit. This reduces the taxes owed from the sale and may help you avoid capital gains taxes on appreciation.
Solar adds to the value of your home, but not for property taxes. That means, in many cases, you’ll enjoy the extra value (and increased home price) of solar without adding to the property tax bill. The solar system isn’t taken into account when calculating your home’s value. Until the end of 2024, new solar installations will be subject to no additional property taxes based on their assessed value.