Federal Government Solar Panel Rebate

It will remain at 30 for residential consumers until the end of 2019 so you re running out of time to take advantage of the full credit.

Federal government solar panel rebate.

If you install solar panels before the end of 2020 you will receive a tax credit that is equal to 26 percent of the cost of your solar installation. Updated june 30 2020. By 2022 residential solar systems won t be eligible for this credit at all. The federal government is gradually going to phase out the solar tax credit.

If say your federal taxes are 6 000 for 2020 and you re eligible for a 7 000 tax credit for installing a solar system at your house you can claim the leftover 1 000 as a credit toward your. 0 3 18 000 5 400. Both homeowners and businesses qualify for a federal tax credit equal to 26 percent of the cost of their solar panel system minus any cash rebates. The federal solar tax credit also known as the solar investment tax credit or itc is the single most important solar incentive available in the united states.

For example if your solar pv system was installed before december 31 2019 installation costs totaled 18 000 and your state government gave you a one time rebate of 1 000 for installing the system your federal tax credit would be calculated as follows.