You may have heard about how solar power saves you money through an ad or from a friend. No matter where you heard about it, one of the biggest questions homeowners have is whether solar panels really are worth it. The use of solar energy is on the rise, and its technology is getting better as time goes by. This blog will go over why you should get solar panels in 2021.
The investment tax credit (ITC), also known as the federal solar tax credit, allows you to deduct a percentage of your solar energy s system’s costs from your federal taxes. It applies to both residents and commercial systems. The ITC was first established by the Energy Policy Act of 2005. It was originally set to expire at the end of 2007, but due to its success, it has been extended by Congress several times. Extended renewable energy tax credits have been included in a $1.4 trillion federal spending package alongside a $900 billion COVID-19 virus relief spending bill. The solar investment tax credit (ITC), which was scheduled to drop from 26% to 22% in 2021, but will stay at 26% for two more years. This means that solar projects in all market segments — residential, commercial, industrial, — that begin construction in 2021 and 2022 will still be able to receive a tax credit at 26%. All markets will drop to a 22% tax credit in 2023, and the residential market will drop to 0% while the commercial and utility markets will sit at a permanent 10% credit beginning in 2024. Homeowners that are considering going solar should ensure to do so within 2021 – 2022.
The Cost of Solar Power
Electric prices keep growing every year, while the cost of solar energy is lower than ever before. Many people don’t consider solar energy because it seems expensive. However, that is the wrong way of viewing the picture. People will be paying their electric company for the rest of their lives, at the mercy of whatever the utility company charges. The cost is highly likely to increase due to the lack of available energy sources. With solar panels, you won’t have to worry about variable energy costs. You will have peace of mind knowing that you will have a reliable energy source at a fixed price. The cost of energy will only get higher by the year, whether you make more money or not. You can protect yourself from these rising costs with solar energy.
In 2020 alone, the use of solar power increased by 37% in the United States. According to SEIA, there will be 42% more solar power installed in the U.S. between 2021 and 2025 than the solar market installed during the last 5 years. This substantial growth in solar energy makes 2021 a great time to go solar. The future of solar energy is bright. Renewable energy does more than just save you money. It provides you security from energy cost increments while decreasing your carbon footprint! Solar has ranked first or second in new electric capacity additions in each of the last 7 years. It is a promising investment that should be considered extensively in 2021.
Solar energy is on the rise. Available fossil fuels will continue to decline, and there’s no better way to prepare for it than with solar energy. The sun is the ultimate source of all other energy sources which should be used to its max potential! We hope this blog helped you see why you should get solar panels for 2021. If you’re thinking of going solar, give us a call at (858) 564-8032 or contact us here.