Remember Good News?
First off, for those that did not join us for our first Virtual Solar Tour on 1/7, we wanted to repeat that tucked into the massive Covid relief package passed by Congress (and finally signed by the President) is a provision that extends the solar investment tax credit (ITC) at a rate 26% for two more years! Prior to the passing of the bill, the ITC or “federal tax credit” was scheduled to drop from 26% to 22% at the start of 2021. With this announcement last week, both homeowners and businesses can enjoy a 26% federal tax credit on solar installations (as well as batteries when connected to solar projects) through the end of 2022. This is HUGE!
- A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to next year. You should check with a tax adviser to make sure you can claim the entire value.
- IRS tax guidance suggests that battery storage systems are eligible for this credit when the battery system is charged by a solar electric generation system.
- The extension of the ITC/federal tax credit demonstrates how committed the federal government is to growing solar across the country. Solar is here to stay.
The State of Solar Update:
- Pennsylvania Solar Stats:
– 437 MW of Solar in 2020 (Rank: 22nd)
– 24,000 + Solar Installations in the state
– In Centre County alone, 468.3 MW of solar are already planned according to the PJM Services Queue
– Solar Plants: 13
2. Federal Tax credit of 26% of your system’s cost in 2021 or 2022 EXTENDED (down to 22% in 2023)
– Residential solar installation in the 7kw range, the 26% tax credit can result in savings of over $7,000.
– Also worth noting, businesses can also take bonus depreciation on solar projects, accelerating the return on investment even more
3. Solar Energy costs have dropped by 74% in the last 10 years!
4. Community Solar has made strides and proving financial beneficial to local communities…we’re so close
- Projected by Penn State to create $1.8 billion in immediate economic impact, community solar in the commonwealth would also create 12,000 total jobs, generate income for farmers that can provide relief and stability, and save consumers money. This economic stimulus package requires no tax credits and no state money. All that’s required is for legislators to act.
- Support community solar legislation- HB 531 or SB 705 (will change #s in the new session)
- A farmer can lease a portion of their land to host a solar garden, and then local residents and businesses can subscribe to the project and receive a credit on their electric bill for their share of the amount of energy generated.
- REAP Grants are also available to help Agricultural sites get solar, ask us how