submitted by Exact Solar, www.ExactSolar.com
History teaches us that 2019 will see a rush to install solar energy systems. Homeowners and businesses that wait too long may find it difficult to get a project completed in time and potentially lose thousands of dollars from incentives.
The most important federal renewable energy program is the Investment Tax Credit (ITC) for solar energy installations.
For any project fully installed before the end of 2019, the ITC allows property and business owners to deduct 30% of their total investment from their income tax obligations that year.
Starting in 2020, new project owners will be allowed only a 26% deduction. It decreases further in 2021.
Waiting until after 2019 to go solar may mean giving up tax savings equivalent to months of power bills or tens of thousands of dollars.
This decreasing incentive creates a situation similar to the one in 2016 when the ITC was due to expire at the end of the year.
Homeowners and business owners raced to get systems installed before the tax credit disappeared.
This created a historic spike in activities and full pipelines early on in the year.
Jump forward to 2019.
There are already signs that the local market is heating up and many reasons to act early.
A rush to complete solar energy installations will be complicated by an already growing number of projects.
Most Pennsylvania authorities are seeing greater requests for licensing and permits and will become backlogged.
Tariffs and increased demand will increase component prices and, therefore, system prices overall, reducing ROI (return on investment).
Investigate your options as early as possible so you’ll have time to choose your best path to savings, make the critical end of 2019 deadline and lock in your 30% tax credit.