Did you know you get a 30% tax credit when you install solar
panels at your home?
That’s right. If your system costs $30K, you get a $9K tax
credit!
Install a big system with whole home battery backup for $100K and
you get a $30K tax credit!
What does that really mean?
Solar marketers love to claim the government will “pay you” to
add solar.
That doesn’t mean free.
It doesn’t mean you can make money from adding solar.
IF you have the tax liability to match the credit THEN you get
money back
How does that work?
You install solar panels in 2023 for $30,000 (Paying cash or
financing)
You could be eligible for a $9,000 tax credit.*
Owe at least $9,000 for 2023? Get the full credit. (HINT: See
line 24 of your most recent 1040)
Owe less than $9,000? Receive a partial credit and roll the rest
forward to the following year.*
If you usually get money back when you file your taxes, you’ll
get more back.*
If you owe, the amount you owe will be reduced.*
One last thing
Zero down financing can be a great way to go solar. But please
know – the fixed monthly payment you see only stays the same if
you apply the tax credit toward the loan – like a deferred down
payment.
For your list this week
Know your annual tax liability (line 24 on your 1040)
Consider taking advantage of the Residential Clean Energy Credit
in 2023
(Info on other eligible items in future emails – HVAC,
insulation, windows, and more)
Best,
Travis
*This is not tax advice. Always seek the advice of a licensed tax
professional when making decisions regarding your taxes.