Tax Credit: Californians Could Save Thousands by Installing Solar — Here’s How

·1 min read
Shutterstock.com
Shutterstock.com

Solar energy has been getting heavily pushed in recent years as the effects of climate change becomes clearer. But it turns out that solar energy isn’t just good for the planet, it’s good for your wallet — especially if you live in California.

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The federal government now touts a tax incentive to Golden State residents who go solar, enabling them to offset the total cost of solar installation. This is in the form of a tax credit that has come about in light of the extension of the solar Investment Tax Credit (ITC).

Via the ITC, California state taxpayers earn a 26% tax credit for solar systems installed between 2020 and 2022; they get a 22% credit for systems installed in 2023. There’s no maximum amount; the sky (or the sun?) is the limit.

This tax credit could amount to quite a pretty penny, too. According to Consumer Affairs, it costs about $12,000 on average to install solar panels. Getting 26% back on that is not too shabby. Additionally, solar will save you money in the long run as you save on the costs of energy in your home.

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Solar has become a hot topic in California, which has been hard hit by climate change (namely in the form of deadly wildfires), and droves of people are opting to switch to the clean renewable energy source. The state leads the nation in rooftop solar capacity.

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This article originally appeared on GOBankingRates.com: Tax Credit: Californians Could Save Thousands by Installing Solar — Here’s How