New Guidance on the Federal Rebate for Solar – Does Anything Change?
If you’ve been considering solar for your home, you might be familiar with the federal rebate for solar. Under the Inflation Reduction Act of 2022, homeowners are eligible for a federal tax credit based on the cost of their solar installations.
The U.S. Treasury released new guidance for its clean energy Investment Tax Credit (ITC) this month, which has led to some confusion. Let’s look at what, if anything, changes for solar power on Long Island.
Can You Still Get a Federal Tax Credit for Solar Power on Long Island?
The new guidance provided by the Treasury Department doesn’t functionally change anything about the federal rebate for solar.
- The current rules allow a tax credit claimed on federal income taxes.
- The maximum amount is a percentage of the total solar system installation cost.
- It’s currently set at 30% of the total bill.
- This credit will be available for solar systems installed between now and 2032.
- In 2033, the credit will be set at 26% and will drop down to 22% in 2034.
- Credits beyond this date will depend on Congress.
If you have seen the news about “new rules” on the federal rebate for solar, you can have confidence that the tax credit is still available. Functionally, nothing changes for families considering solar power on Long Island.
Determining the Incentives Available for a Long Island Solar Installation
The various tax credits and incentives might seem complex and overwhelming at first. There’s more than just the federal rebate. There are also state programs available.
You’ll receive detailed information and guidance as you go through the consultation process for a Long Island solar installation. Each situation is unique, so available credits and incentives can vary between households. We simplify things during the consultation so you know exactly what you can claim.
Typically, homeowners on Long Island will have access to:
- A state income tax credit is based on a percentage of the total installation cost.
- The 30% dollar-for-dollar federal tax credit is based on the total installation cost.
- A direct incentive from NYSERDA that comes off the top of the bill.
The state and federal rebates for solar programs can greatly offset the cost of solar. If you’ve considered solar but figured it would be too expensive, it’s worth learning more about financing. New York Power Solutions offers solar financing with an interest-free period based on incoming tax credits. You can finance your installation and still enjoy a strong return on your investment over time.
Get a Cost/Benefit Breakdown for Solar Power on Long Island
Knowing that there are credits and rebates available makes solar much more appealing. However, it’s important to have a clear idea of the actual savings and return.
That’s where a cost/benefit breakdown can help. We provide an analysis to every customer, outlining how much a solar system could save, relative to the cost of installation and financing. In New York, most systems will generate savings equivalent to the cost within ten years. Solar panels last around 25 to 30 years. All the savings generated after those early years will be pure profit in most cases.
Get honest and detailed information and see if solar power on Long Island is right for you. The team at Long Island Power Solutions will take you through a detailed consultation and energy savings evaluation, and you won’t pay anything until you’re ready to say yes to solar.
The federal rebate for solar has made renewable energy accessible to most families on Long Island. Request your free ballpark solar estimate today and learn more about one of the best home improvements available today.