America today has strived to find innovative ways to reduce the country’s carbon footprint and seek out clean, go-green, alternative energy sources for a better tomorrow. One energy-saving method that has become a popular choice for residents and business owners is the use of solar panels. Solar panels are used to collect energy from the sun that eventually is used for electrical needs. This energy source isn’t only popular for its go-green mantra but is ideal for home and business owners looking to save money.
Tax Credit Incentives for Taxpayers
One of the great savings, business, and homeowners can look forward to during tax season is applying for the federal solar tax credit, also known as the Investment Tax Credit (ITC). This credit makes “going solar” more affordable because it grants a dollar-for-dollar tax deduction equal to 30% of the total cost of a solar energy system. That means that 30% of the cost it took for an installation to take place will be reduced the overall federal tax burden. It is important for home and business owners to understand that they are only eligible for the Investment Tax Credit (ITC) if he or she OWNS the solar system, rather than lease it. If a contract is signed, the third-party owner will receive the tax credit associated with the solar system.
Can solar panels save me or my business money?
This question is asked more often than not. Many individuals believe that the cost of installation and overall care will far outweigh the savings that may come from using solar power energy. But it has been found that going solar can eliminate an electric bill entirely or reduce it dramatically. Of course, these savings with solar depend on a few different factors, like how much energy the system produces and how much the home or business consumes, but the biggest factor is the rates that would otherwise be paid to public utility.
The savings for going solar are also not instant; they will slowly take time to see the results from the investment made. In Utah, the total savings in electricity was nearly $21,000 after 20 years. Going solar will affect finances but in a good way. A helpful consideration is to look at how much it can save a home or business owner and how soon he or she can start saving. Get started today and find out what it means to “Go Green.”