Have you always thought about going solar but just never got around to it? Well, there is no better time than the present to act on it as some tax incentives will be going away after 2021! That makes this the prime time to go solar and cut down your electric bill while making your home more energy-efficient and environmentally-friendly.
Colorado is a prime state to take advantage of solar power because of the high number of sunny days throughout the year. With solar power, you can increase the energy efficiency of your home and save money. Solar technology has advanced in the last several years, which means that the cost of installing a solar system in your home has never been lower. Additionally, you can take advantage of plenty of tax incentives and rebates when you switch your home to solar. But don’t delay, read on to find out why some of these tax breaks won’t last.
Solar Federal Tax Incentives
Federal tax incentives, known as the investment tax credit (ITC), for installing and using solar power can be substantial, but it only applies to those who purchase their solar array outright. How it works is that, through 2020, you can claim 26 percent of your investment in your solar system to your tax liability for the year. So, you simply take your cost of installation, multiply it by 0.26, and the result is the tax credit you can apply. Keep in mind this is a tax credit, not a rebate. The sooner you take advantage of this tax incentive, the better: the tax credit will be reduced to 22 percent in 2021, and reduced again to 10 percent in 2022, after which the tax credit expires.
Solar State Tax Incentives
The Colorado state government also offers several programs to make converting to solar energy more appealing for homeowners. The first one is the Sales and Use Tax Exemption for Renewable Energy Equipment. This exemption means that homeowners who purchase a solar array won’t be charged any sales tax on their purchase. This applies to all of the components of your solar array such as solar panels, inverters, racking, and wiring.
When you install a solar array in your home, the value of your home will increase, and normally so would your property taxes. However, thanks to Colorado’s Property Tax Exemption for Residential Renewable Energy Equipment exemption, your property taxes will not increase even though your home value does. And the best part is that if and when you decide to sell your home, your listing price will be higher thanks to your solar array.
Solar Local Incentives and Rebates
Depending on where you live in Colorado, you may also qualify for additional incentives or cash rebates from your local utility or municipality. For instance, Energy Smart Colorado is a non-profit organization that partners with several utilities and other groups to offer cash rebates that range from $400 to $3,000 on a home solar installation in 26 counties throughout the state. Holy Cross Energy, which services the western Colorado counties of Eagle, Pitkin, Garfield, Mesa, and Gunnison, offers a rebate for going solar on a per-kilowatt (kW) basis. Customers who install a solar array receive $500 for the first 6 kW, and the rebate is stepped down as the size of the system increases. A homeowner installing a typical 6 kW system could save $3,000 with this rebate. There are many other incentives and rebates throughout the state; your access to them depends on where you live and which utility provider you use. The best source of information about incentives and rebates available to you will be your solar energy contractor, so don’t hesitate to ask them to help you explore your options.
Other Money-Saving Benefits For Going Solar
Colorado employs a net metering policy which means that you get credit for the power your solar system generates. When your solar system generates more electricity than you use, the excess is sent back to the grid and used elsewhere. This is paid back to you in one of two ways: either your electric bill reflects the electricity you used minus what your system sent to the grid, or you receive credits that you can use when your solar array doesn’t generate adequate power.
Another great way to save money is through a power purchasing agreement (PPA) with a local utility company. With a PPA, the utility contracts with a third party company that installs a solar array on your roof with little to no cost on your part. The utility offers you a set price to purchase electricity from your solar array; in essence, paying you to use your roof space. The third-party company manages and maintains your solar array. A PPA can generate several thousand dollars for a homeowner. Check with your local utility company to see if they offer a PPA program.
Steel City Solar Cares About the Environment
At Steel City Solar, we care about helping the environment AND helping you save money. That’s why we work hard to give you the information you need to make educated decisions about your switch to solar.
The many benefits of solar power make it a wise financial and environmental investment. Enjoy more independence from the failing grid, save money, and reduce your carbon emissions by making the switch.
So get a free estimate today from Steel City Solar and find out if your home qualifies for a solar panel system. Give Steel Solar a call today at: 719-569-5166