How to Boost Your 2023 Tax Return By Going Solar!
With tax season at our doorstep, it is time to start thinking about how you and your family can make the most out of your taxes for next year. If you want a sure-fire way to boost your 2023 tax return and, in the process, eliminate your electric bill, then switching to solar energy is the move for you!
Outside of the potential savings and increase in home value that solar panels provide, going solar has the added benefit of large tax incentives. That’s right; the government is currently offering the Solar Investment Tax Credit (ITC), an incentive that allows homeowners who choose to go solar to claim 26% of the cost of your solar system! This is big news and can help homeowners afford a system and reduce (or eliminate!) a homeowner’s dependency on their utility company. It is important to note that the ITC is a federal program, meaning it is available across the United States. Depending on where you live, there can also be local incentives to go solar.
For example, below are a few local solar incentives for Maryland residents of specific counties:
- Anne Arundel County: $2,500 Property Tax Credit
- Baltimore County: $5,000 Property Tax Credit
- Harford County: $2,500 Property Tax Credit
- Prince George’s County: $5,000 Property Tax Credit
Additionally, the state of Maryland offers a flat $1,000 grant for installing solar panels, as long as the system is not larger than 20kW. The average solar home’s system size is 6kW, so if you’re a homeowner in Maryland, going solar will offer you a plethora of savings!
Similar state grant programs are available for Delaware as well. Programs such as Delmarva’s Solar Rebate Program is available to Delaware Delmarva utility customers and allows $6,000 max grant for photovoltaic (solar) systems. In other words, Delmarva will pay $0.70 per watt of solar generating capacity installed up to 50 kW, with a max rebate of $6,000!
In addition to incentives, solar homeowners can also benefit from Solar Renewable Energy Credits (or SRECs) that are based on solar production. The amount of SRECs you receive are based once your system’s output. In terms of SRECs, it’s best to think of them as a receipt of how much renewable energy your solar panels have produced in a given amount of time. Once your solar system produces 1,000 kWh, you will receive one SREC. These SRECs are automatically sold to the open market at the going rate, and the money is directly deposited into your bank account. Long story short, solar panels will pay you, just for having them working on your roof!
When it comes to saving money with solar, these incentives and credits go a long way in making solar a positive investment. However, to benefit from these incentives you must choose to own your system. If you lease your panels or enter a residential PPA agreement with a solar company, you will not be eligible for these incentives. Instead of you, the incentives will go to the company who you signed a lease or PPA with. It really does pay to own your solar system. It is also imperative to know that the 26% tax credit only applies to solar systems installed in 2022. After this period the incentive will drop from 26% to 22% of the cost of the solar system.
Now all these benefits, incentives and grants can be confusing, which is why American Sentry Solar has solar experts standing by to make sure you do not miss out on any discounts or incentives! If you live in Maryland, Delaware, Pennsylvania, or Texas give American Sentry Solar a call and see what incentives and grants you qualify for. Chances are a solar system costs less than you think, and you be benefitting from major tax breaks! Not to mention the clean, renewable energy your panels will be producing. It is important to explore all the avenues that can help you save on your solar system and get the largest refund possible come tax season. If you ever have any questions about going solar or what local incentives are available to you, give us a click or call!
Is Solar Right for My Home?
If you are interested in solar, but unsure if it will work for your home, give us a call! We love to help homeowners discover the benefits of solar with a Free Solar Analysis and we are candid when solar is not a good fit for the residence. What are you waiting for, see if solar is right for your home; it's FREE!