The Labyrinth of Solar Tax Incentives

Finding Your Way Through the Labyrinth of Solar Tax Incentives

When you consider the benefits of installing solar panels on your home or business, the advantages are obvious! Saving money, helping the environment, owning your own power source, and of course the tax incentives. 

While many people have heard about the potential tax credits, deductions and rebates, the process of knowing exactly what you are eligible for and properly filing for them and receiving back everything you should can be overwhelming.

Tax Incentives

Thanks to tax credits provided by the Federal Government everyone who purchases solar panels are eligible for a 30 percent Federal Tax Credit based on the full purchase price of the system.

However, often times homeowners don't understand exactly how that credit works or how to maximize it.  And even fewer homeowners are aware that the 30 percent tax credit might just be the tip of the iceberg when it comes to saving on your solar system purchase.

Solstice Solar installers set panels on a roof in Dammeron Valley, Utah. "Companies providing this kind of solar tax service... are vastly superior to solar companies who don’t offer this kind of thing," Warburton said.

In order to ensure Solstice Energy customers have access to the most accurate information regarding solar tax incentives, Solstice Energy has teamed up with the Solar Tax Association. The Solar Tax Association is one of only a handful of financial companies that are members of the Solar Energy Industries Association (SEIA.org). SEIA is the National Trade Association for Solar in America, and is at the forefront of the industry.

Whether at the regulatory or legislative level, SEIA.org is constantly engaging with policymakers in Washington, DC and across the country to establish supportive policy frameworks that allow solar to compete in the marketplace and offer cost-competitive, reliable energy to consumers. SEIA also offers seminars and comprehensive updates and information to it's members to make sure they can help guide clients correctly in this emerging industry.


“Solar is extremely complex,” says Jeremy Warburton, a principle owner at The Solar Tax Association. “There is no uniformity from state to state, county to county, or even utility company to utility company.”

In order to make sense of the variances between each utility’s net metering agreement and the interconnection agreements, The Solar Tax Association provides each Solstice Energy customer a free assessment on their specific agreement with the utility company to determine which tax incentives they qualify for and what other benefits they might be eligible to receive.

“It’s a huge benefit. The average client we speak to will miss anywhere from 2-4 incentives when filing on their own. Providing a 20-30 minute phone call with a solar tax expert can often help the client claim thousands of additional dollars they had no idea were available,” Warburton says.


Potential Hidden Benefits

After taking an in-depth look at how solar actually works, experts at The Solar Tax Association discovered that some solar customers are actually selling power back to the utility company, while others are getting a subsidy for the excess power they generate. 

If the Net Metering Agreement between the homeowner and local power provider is worded in such a way that indicates a sale is taking place, those customers stand to be able to take massive incentives above and in addition to the 30% Federal Credit and any applicable State Tax Credits.

“In some cases, the homeowner can write off the entire purchase price of the solar equipment, less half of the tax credit,” Warburton says. “That’s 85 percent of the purchase price that can become completely tax deductible. This is a huge benefit.”

There are rules that apply so it is important to deal with a tax professional who has an intimate knowledge of the solar industry and how your system is set up and how your local utility company works.

Find Out For Yourself

"One of the biggest reasons for the boom in solar right now is the tax incentives," Warburton says, "but the tax incentives are complex. It’s just the nature of the tax code, especially in a new industry like this where the laws can change quickly. Having a company, like Solstice Energy, who is concerned not only about helping you power your home in a more efficient way, but is also looking out for your wallet at the same time is paramount when determining who to turn to when you decide it’s time to go solar."

“Solar is extremely complex,” says Jeremy Warburton, a principle owner at The Solar Tax Association. “There is no uniformity from state to state, county to county, or even utility company to utility company.”

In order to make sense of the variances between each utility’s net metering agreement and the interconnection agreements, The Solar Tax Association provides each Solstice Energy customer a free assessment on their specific agreement with the utility company to determine which tax incentives they qualify for and what other benefits they might be eligible to receive.

“It’s a huge benefit. The average client we speak to will miss anywhere from 2-4 incentives when filing on their own. Providing a 20-30 minute phone call with a solar tax expert can often help the client claim thousands of additional dollars they had no idea were available,” Warburton says.


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