What You Need to Know About Solar for 2023
By: Dan Herman
Receive a 30% Solar Tax Credit
When you install solar in 2023, you can claim the Investment Tax Credit (ITC or federal solar tax credit)on your 2023 taxes. The ITC is the best incentive for 2023. It allows you to reduce what you own in federal income taxes by 30% of your total solar installation costs. So, if you install a $20,000 solar panel system, you're eligible for a $6,000 tax break!
There's been a lot of talk about the solar panel tax credit and the Inflation Reduction Act this year. Here's what you need to know about the IRA solar tax credit for 2023.
The solar tax credit has increased to 30%
The 30% solar tax credit has been extended until 2032
Solar battery storage qualifies for the IRA solar tax credit
Avoid Rising Electricity Rates
Energy costs continue to rise, and it doesn't look like it will get better anytime soon. Installing a solar energy system is the best way to protect yourself against rising rates. With solar panels and battery storage, you can produce and store your electricity at home, so you won't have to buy from the grid and pay exorbitant rates. In addition, solar panels last for 25+ years, so when you go solar now, you can essentially lock in your electricity costs for over two decades.
Keep Your Lights on When the Grid Goes Down
Power outages might not affect us as heavily as others in the state, but that doesn't mean they don't happen. If you install solar with battery storage, this can be the solution for avoiding such issues.
Solar plus battery systems can operate independently from the grid and remain operational while the grid is down (solar systems without batteries can't do this and shut off during an outage), allowing you to keep the power on during an outage. For example, if the power goes out at night, you can use energy from your battery to power your lights, medical equipment, and phone chargers.
Increase Your Home's Value in 2023
In California, solar panels may increase the value of your home. And, in many cases, a home may sell faster, too. So if you're considering selling now or in the future, going solar now can help you get more from your home when you decide to move. In addition, solar panels can last for more than 25 years, so even if you're planning to stay put for a while, getting your panels up and running now could be a big help when you are ready to sell.
If you are ready to speak with a solar specialist, don't hesitate to get in touch with local expert Dan Herman by calling 949.573.3259 or by visiting: SolarEnergyPartnersSoCal.now.site.