Congress Has Extended the Solar Investment Tax Credit

Started back in 2005, the popular Solar Investment Tax Credit (ITC) would have dropped from 26 percent to 22 percent this year, and then eliminated altogether. But Congress has just agreed to extend it for four more years on residential installations, and permanently on commercial installations. Used to offset the cost of installing solar electric systems on a home or business, the ITC allows property owners to install a renewable solar energy system on their home that will typically pay for itself in seven years. Because solar panels have warranties of 25 years or more, a solar energy installation can insulate you and your energy bills from the ups and downs of the economy for years to come. From the new legislation, a solar electric system installed on your home will get a dollar for dollar ITC in years 2021 and 2022 at 26 percent, an ITC of 22 percent in year 2023, and an ITC of 10 percent in year 2023. Commercial installations follow the same step down schedule, but will continue to claim the 10 percent ITC through 2025 and beyond. For more information on solar installation incentives at your location, see: https://www.dsireusa.org/ For more information about solar interconnection in Xcel Energy service area, see: https://www.xcelenergy.com/programs_and_rebates/