Tax Credits
Solar incentives can make your PWRcell® Solar Battery Storage System even more affordable.
There is a federal tax credit of 30% that many homeowners who purchase solar systems will qualify for. Plus, there might be local incentives available, too. These solar incentives can help reduce the investment you’ll make in harnessing and storing power from the sun.
Understanding the federal solar tax credit.
Also known as the investment tax credit (ITC), this credit can be claimed on federal income taxes for a percentage of the cost of a solar system. In August 2022, the Inflation Reduction Act was signed into law which raised the ITC credit from 26% to 30% and extended it through 2034.
- Cost of solar panels
- Labor costs for installation, including permitting fees, inspection costs, and developer fees
- Balance-of-system equipment, like inverters, wiring, and mounting hardware
- Home batteries charged by your solar equipment
- Sales taxes on eligible expenses
- You have sufficient tax liability
- Your solar project is installed and made operational in the tax year you’re claiming the credit
- You live in the home where the system is installed
- You own your system outright or have financed ownership of it (leased systems don’t qualify)
- The system installed is being used for the first time on your home
Exploring local solar incentives
Depending on where you live, there may be state or city-level programs available. These often are in addition to the federal credit, and savings can add up! We know tax credits, incentives and rebates can get confusing, but it’s worth taking the time to do your research and talk with your local installer to find out more.
This information is for informational purposes and is not provided, and should not be relied on, as tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors for information.