If you’re among the many Americans still relying on traditional energy to power your home or business, you’ve likely noticed a steady increase in your utility bills over the last decade. An effective way to help recoup these costs is to install solar panels. Below is a quick rundown of how they could save you money, especially when installed before the end of 2019.

Understanding the Solar Federal Investment Tax Credit (ITC)

What Is the ITC?

According to the federal government’s current solar tax credit, 30 percent of the costs of solar panel installation may be deducted from annual federal taxes. The tax credit applies to both residential and commercial solar energy systems. Even better, the ITC currently has no cap on the system’s value.

Why Should You Install Solar Panels in 2019?

At the end of 2015, Congress passed a spending bill that extended the ITC to home and business owners through 2021. However, those interested in investing in solar energy will get the most significant value by completing their installations by the end of 2019, when the tax credit remains 30 percent. Beginning in January 2020, new commercial and residential solar energy systems will only be eligible for a deduction of 26 percent. In 2021, the credit goes down to 22 percent. Then from the year 2022 onwards, only owners of new solar energy systems intended for commercial use will be eligible for a tax deduction of 10 percent.

How Else Can Solar Panels Save You Money?

If the tax savings and benefits of installing solar panels aren’t enough to sway you, consider that upgrading to clean energy also increases your home’s value. According to a study by the Lawrence Berkeley National Laboratory, solar panels can add $20,000+ to a property's resale amount. With numbers like this, investing in solar now will continue to pay for itself over time, while also helping reduce your home’s or business’s carbon footprint.

If you’re interested in taking advantage of higher tax credits by installing solar panels within this deadline, Golden Solar in Colorado can help. For the last 12 years, they've helped residents in Jefferson County and the surrounding areas reduce utility costs and embrace energy independence. To learn more about their solar, microgrid, and battery solutions, call today at (303) 955-6332 for a free estimate. You can also contact this clean energy company online for additional information on costs.