If you’re one of the homeowners that have thought about installing solar panels in Florida, this article might help you.

Currently, you may save 26% on the cost of installing solar energy systems in residential buildings thanks to a new tax credit facility for solar panels. This suggests that you might save anywhere from $7,000 to $10,000 on your next installation.

All you need to know about Federal Tax Credit for solar panels

Following the passage of the Energy Policy Act of 2005, which offered a number of incentives to boost the production of electricity, the Federal Solar Investment Tax Credit was established. The two-year duration of this solar tax credit program was originally planned.

However, this plan was wildly successful and had a good effect on the economy. This continued success caused the scheme’s expiration date to be continuously postponed until 2020 when it was again extended by two years with additional solar incentives.

What are the advantages of solar panels?

• Solar panels contribute to environmental change. The likelihood of avoiding damage from fossil fuels increases with greener energy. In addition to improving the environment, you are helping in the expansion of job opportunities in the renewable energy industry.
• Get rid of excessive energy bills.
• Take advantage of solar discounts, such as the recent Investment Tax Credit (ITC).

How the Solar Tax Credit works

Amazingly, all you need to do to be eligible for the federal tax credit for solar energy is to purchase and use a solar energy system.

You may roll over any bonuses that you do not use up in a given year into the following one. Owners of solar-powered systems are the only members of the scheme.

Claiming the solar tax credit will not be possible with a leased system.

How much could a solar tax credit save?

Since the ITC is a dollar-for-dollar reduction, the project’s cost determines how much money is saved. The savings at each project scale will be calculated using an estimate from the most recent SEIA report.

 

As a result, a homeowner that spent $30,500 on a system in 2021 is eligible for credits worth $7930. You can take advantage of this benefit if you are qualified and familiar with the solar tax credit filing process.

Requirements to use the federal tax credit

You must meet certain criteria that have been set up to control the claiming of this benefit in order to qualify for this tax credit for solar energy. They consist of;

• You must fix it in your primary or secondary residence.
• You must have fully paid for it and owned it.
• It must have been set up before  December 31, 2023.

Mobile houses, houseboats, cooperative homes, condominiums, family homes, etc. are among the several types of real estate.

If you can go solar in 2022, why should you?

You can tell that the government is really interested in this area because so many incentives are currently going to the solar power sector.

 

You should move to a world powered by solar energy if you have the means to do so. In other words, everyone benefits. Use solar power to save money today.

In 2022, how can you get the federal solar tax credit?

There is a method how to apply for the solar tax credit. 

 

You can claim your residential solar tax credits by completing IRS Form 5695. The calculation is performed as follows:

 

Calculate the overall cost of your systems.
Discover your residency category
Incorporate the ITF refunds.
Get your tax bonus that is non-refundable.

 

A tax professional can advise you on how to submit a claim for your solar tax credit when you’ve finished the computation.

Conclusion

The use of solar energy is the way of the future, so choosing a reputable installation company like PPM Solar is a smart option.

 

For every type of installation, our specialists are always on hand. Our track record shows that we exclusively offer top-quality service within and outside the state.

To receive simple commercial and residential solar electricity in Florida, get in touch with us right away.