One of the most common reasons why homeowners delay the installation of a residential solar system is the cost of investment. People want to leverage renewable energy for their homes. At the same time, competing financial priorities push solar installation to the bottom of the to-do list.
As a solar professional, you can help homeowners overcome these initial concerns by leveraging available solar rebates and tax cuts. The clean energy initiatives on both federal and state levels offer valuable financial support for those people who are ready to invest in solar power. Some of these tax credits are changing at the end of 2020. So, now is the time to help homeowners save as much money as possible.
Federal Solar Tax Credit Extension Cutoff for 2020
A simple calculation makes it easy to see how homeowners can save thousands of dollars on equipment and installation. In 2016, the Federal Solar Tax Credit offered a 30% tax credit on the cost of a solar panel system. This tax credit dropped to 26% in 2020 and will drop again to 22% on January 1, 2021.
The tax credit goal is to incentivize homeowners to invest in clean energy, helping to improve nationwide initiatives to slow the effects of global warming. Many people have taken advantage of these tax credits, but the market is still ripe and ready for new installations. The problem is that homeowners don’t know about the tax credits that are going to drop in a few weeks.
Help Homeowners with Solar Installation Before December 31, 2020
Homeowners who want the full 26% federal tax credit need to act now because they must install their solar system before the end of the year. If you are a solar installation contractor, then this deadline is on your side. Please don’t delay in showing homeowners why they shouldn’t postpone their investment. Acting now means they can get an additional 4% in federal tax credits. Waiting until January 2021 means that the credits will drop to 22%.
Your solar business can end 2020 on a strong note by helping as many homeowners as possible qualify for these tax credits. It’s a win-win situation: homeowners are happy to receive thousands of dollars in tax credits, and your business grows as you help people access clean energy.
Modernize can help achieve your goals this December by connecting you to hundreds of interested homeowners to discuss the federal tax credits. Prepare information to help each person determine their eligibility. This resource from Energy.gov is a good overview that you can provide to potential customers. These tax credits create an incentive for homeowners to act quickly, helping to close the deal.