August 29, 2016 ~ Snake River Alliance
An informative article in Consumer Reports makes a strong case for switching to solar. In fact, they advise that there’s “probably never been a better time to switch.” Costs of solar systems have dropped, but what really makes solar attractive right now according to Consumer Reports is the generous federal tax credit.
Last December Congress extended the Solar Investment Tax Credit for installations commenced through 2021. You will get a 30 percent credit for the cost of a solar system installed through 2019. If your system costs $16,000, your federal tax credit is $4,800. If your system costs $26,000, the credit is $7,800. This credit is only available if you purchase your solar system outright, not if you lease, one of the reasons Consumer Reports says that “leasing is not a bright idea.” The Solar Investment Tax Credit decreases to 26 percent in 2020 and 22 percent in 2021. Check with your tax advisor about carrying forward unused credits to the next tax year if your tax liability is less than your credit.
Idaho also offers incentive for switching to solar. Idaho offers a tax deduction; homeowners can reduce their taxable income by 40 percent of the cost of the solar installation the first year and 20% for each of the next three years. The deduction is limited to $5,000 per year and $20,000 total. Idaho also offers very low-interest loans. Homeowners can borrow up to $15,000 to pay for solar installation at 4 percent interest with a 5-year repayment.
These incentives coupled with the fabulous prices and warranties offered through Solarize the Valley make right now a terrific time to switch to solar. Homeowners who signed up for the Solarize the Valley program have until October 31, 2016 to sign an installation contract for a residential solar power installation tailored specifically for your home.
If you have questions about solar energy, net metering, financing, scheduling or anything else, we are here to help.
If you have questions about your residential solar installation proposal, you can contact our awesome residential solar installer-partner, AltEnergy, directly at: (208) 501-5417
The Snake River Alliance excels in promoting clean, affordable, and nuclear-free energy for all Idahoans. Our Solarize campaign reflects our commitment to ensuring our energy comes from responsible and sustainable resources – like solar power. The Snake River Alliance is a local, member-supported non-profit organization. You can support all of the clean energy work of the Snake River Alliance by making a tax-deductible donation. Use our secure online portal to support our work today.