It’s tax time again! You may not be happy about the extra paperwork chore. But, by adding solar, you could earn a sweet bright side for your wallet with 2022 solar tax benefits. We’re going to explore the opportunities for savings that solar panels offer.
Solar power is alive and well in the state of Colorado! By the year 2040, there are initiatives in place that 100% of all electricity needs to be generated by carbon-free renewable resources. Many residents have been enjoying the benefits of their utility company’s solar rewards programs. Some offer solar credits for over 20 years! With these programs, you can earn extra money for every kilowatt-hour your panels generate. Several rebates continue to be available to the residents of Boulder as well as Colorado Springs. Overall, the state of Colorado is a terrific place to go solar!
The Federal Solar Investment Tax Credit
Already have a solar array? Considering adding solar to your property? The federal solar tax investment credit will have a big impact on what you’ll pay for solar. This is commonly referred to as the ITC (Investment Tax Credit). If you install a solar system on your property before December 31, 2022, your tax credit will be 26%. That’s a nice discount off the cost of the entire system, and that includes the permits, labor, and equipment! For example, if your whole system was $25,000 then your federal solar tax credit would be $6,500. In 2023, the federal tax credit will drop to 22%, so the time to use solar tax benefits is now!
Net Energy Metering In Colorado
In some states, you can get a full retail rate credit based on the amount of electricity you generate with your solar system that goes back to the power grid. Net metering ensures that you get credit in the form of cash or energy for every bit of energy your panels generate. Your energy company tracks this data and credits you back for this surplus. This helps off-set the cost of energy you’ll need at night or on cloudy days when your panels don’t produce power.
Colorado may have one of the best solar policies in the country thanks to net metering. They require all power providers to pay their customers for any net extra energy that their solar systems produce throughout the year. If a consumer is conservative with their energy use they can actually create a profit. Best of all, at the end of the year, if you still have a surplus credit on your account, the utility company will cut you a check at the end of the year. That’s a nice perk just for being energy efficient and contributing to the energy grid!
Seeking State Solar Rebates?
Colorado’s utility companies have to meet the state’s renewable energy guidelines. So they’re happy to assist you in getting a solar panel array on your property. Sadly many of the huge solar state rebates of the past are gone in Colorado. But the great news is the prices for solar power systems have dropped over the years. That price reduction is by comparison almost as much as the old rebates were!
Check with your local utility company and see if they offer rewards for households with solar power. It could pay you an incentive on a regular basis for the number of kilowatt-hours you generate from your solar panels!
Sales and Property Tax Exemptions
Installing a solar system onto your property could add thousands of dollars to your home’s value. If you’re lucky enough to be a homeowner in Colorado and you add solar, you’ll never pay a penny on that increased assessed value in real estate tax. As an added bonus, when you have a solar system installed in Colorado you’ll be exempt from 100% of any related sales tax. That’s a powerful renewable energy law. Clear, concise, and saves you money!
Boulder’s Low Income Solar Grant Program
Homeowners earning less than $82,000 a year for a family of four can be eligible to receive up to 50% off of the total project costs of a solar system. This is calculated after incentives, tax credits and rebates are subtracted. Given Boulder’s current living expense, this can be a sizable amount of savings. Hopefully we’ll see more programs like this offered across the state. Boulder may start a trend we’ll see in other communities.
Now Is The Time to Take Advantage of Solar Tax Savings
To take advantage of the 26% tax credit, you’ll want to have your solar system installed before December 31, 2022. Take advantage of these solar tax benefits and join the 300,000 other families in Colorado that have decided to go solar. You’ll be minimizing your carbon footprint and doing your part to help the environment! If you have any questions or would like to learn more about the life-changing benefits of going solar, give a call to the experts at Steel City Solar at 719-569-5166. One of our sunny representatives will be happy to help you! You can also visit our website and see about getting a free estimate!