Save money on taxes when you switch to solar energy
There are many benefits to switching to solar energy, but a lesser-known benefit is that you can claim a portion of the cost of a solar system as a credit on your federal taxes. Not only can you get a tax credit for your solar energy system, but you can also get credit for any solar battery that you might install onto your system. Read on to learn why you should claim a federal tax credit on your solar battery backup in Thousand Oaks, California.
Federal Solar Tax Credit
One of the best financial incentives for solar energy in the United States is the federal solar tax credit, also known as the investment tax credit or ITC. You can deduct twenty-six percent of the cost of a solar energy system from your federal taxes with no limit on the amount. The average amount saved is almost $9000. As more people are investing in solar, more people are also thinking about adding energy storage to their installation, which usually can also be applied to the federal tax credit. Consult your tax professional for details.
How to Qualify
To qualify, you need to own the solar energy system, not just lease it from a provider. If you don't have enough tax liability to claim the entire credit, for as long as the tax credit is in effect, you can rollover the remainder of the credit into future years. There is a different set of requirements for your solar battery to qualify. The battery isn't deemed renewable energy if it can be charged by grid electricity. To be eligible for the tax benefits, it needs to be charged by renewable energy.
Benefits of a Solar Battery
For residential properties, the battery qualifies if it is only charged by an on-site renewable energy system such as solar energy. You will need solar panels to charge your battery, since charging on the electrical grid disqualifies you from the tax credit. Batteries add versatility to the application of your solar system, as well. They store energy and use it when energy from your electricity company peaks, saving you money (peak time is usually between 5 and 10 pm, when people are home from work and school). They also offer emergency backup to essential devices when the utility grid goes down.
Are you interested in the financial and energy benefits of a solar system with battery backup? Green Convergence is happy to help you with your installation. Learn more about installing a solar battery backup in your Thousand Oaks home by calling us at (661) 491-5111 or filling out our online contact form.