Installing solar panels is more affordable than many Intermountain West homeowners think. Making the switch to photovoltaic power is in anyone’s reach, thanks to the range of financing options available.
And, by taking advantage of every available financial incentive for adopting solar energy, you can significantly reduce the cost of going solar. Solar tax credits offer the biggest savings, and by claiming them you will:
- Minimize your photovoltaic costs
- Greatly reduce your income tax liability
- Reach the payback point much faster
Curious about how much money you can save with solar tax credits?
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Savings with the Federal Solar Tax Credit
The federal solar investment tax credit (ITC) offers immense savings on photovoltaic system installation costs – and the faster you begin your project, the more money you can save.
Each year, the federal incentive amount drops:
- In 2019, the credit is 30 percent of the system costs
- In 2020, the credit will be 26 percent of the system costs
- In 2021, the credit will be 22 percent of the system costs
- In 2022, the credit will be gone
As long as you own your solar energy system, you qualify for the federal ITC. And if you don’t owe Uncle Sam enough to claim the entire credit, you can roll over the remainder.
Savings with State Solar Tax Credits
Many states offer their own tax credits on photovoltaic system installation – and you can claim state-level incentives along with the federal solar ITC to maximize your savings.
States in the Intermountain West region that offer solar tax credits include:
- Utah — You can claim 25 percent of your photovoltaic costs, up to $1,600, if you install a solar energy system by then end of 2020. In 2021, the credit will fall to $1,200, and in 2022 the amount will be capped at $800. For systems installed in 2023, the maximum credit will be $400. After that, the state-level incentive will disappear.
- Idaho – You can claim 40 percent of your photovoltaic costs the year you install a solar energy system as well as an additional 20 percent for the next three years. The state solar tax deduction is maxed out at $5,000 per year, or a total of $20,000 in savings.
Along with state solar tax credits, homeowners in Utah and Idaho save money through net metering. The utility companies in both states give credits for electricity that their solar panels generate and send to the grid.
In other Intermountain West states, no tax credit is available – but homeowners still have opportunities to save money:
- Nevada – NV Energy will pay you $0.15/watt when you install solar panels. In addition, whether you’re a customer of NV Energy or not, you’ll receive net metering credits for electricity your photovoltaic system sends to the utility grid.
- Oregon – Several local solar rebates are available, ranging from $0.20/watt to $0.50/watt, and the rebates you qualify for will depend upon where you live in Oregon. Plus, thanks to the state’s favorable net metering policy, your utility company will pay you the full retail rate credit for any excess electricity your solar panels produce.
- Wyoming – The state of Wyoming has a solid net metering program. The exact rate paid varies by provider, but if you end up running an annual surplus, you can expect your utility company to purchase the excess at the end of the year.
Do you have questions about solar panel installation? Or are you ready to start your project? In Utah, Idaho, Nevada, Oregon and Wyoming, switching to photovoltaic power is both easy and affordable with Intermountain Wind & Solar. Contact us today to schedule your free consultation and find out how much money you can save!