Installing a photovoltaic system in your home allows you to harness the sun’s energy for a multitude of purposes. Not only is the system beneficial to the environment, but it can also help you save money on taxes. Here are two tax credits you may be able to claim when investing in solar energy.

Solar Investment Tax Credit

With the Solar Investment Tax Credit, residential property owners can receive a 30% reduction on the full cost of the system. To qualify for this credit, you must prove that you’re the owner of the residence and solar energy equipment. Leasing the equipment makes you ineligible, as the installation company can also claim a tax credit.

Depending on when you install the photovoltaic system, your credit may be less than 30%. This amount applies to those who installed equipment between 2016 and 2019. Beginning in 2020, the credit will be 26% and will decrease further to 22% in 2021. In 2022, homeowners will no longer be privy to a tax credit, so be sure to claim these savings while you can.

Renewable Energy Technologies Income Tax Credit

Hawaii residents are also privy to the Renewable Energy Technologies Income Tax Credit. With solar systems, homeowners can claim 35% of the total cost of the system or the cap amount, which is incumbent on how the system is used. If the system is used to heat water in your home, the cap amount is $2,250 per system. If the solar power system is used for other purposes, the cap is $5,000 per system unless all or a portion of the system meets the renewable energy technology requirement. In this case, the cap is 35% of the cost or $2,250, whichever amount is less.

If you’d like to claim these tax benefits, contact the team at Solar Help Hawaii in Honolulu. These professionals specialize in photovoltaic systems installation and maintenance. Their team offers residents with quality solar panels, water heaters, attic fans, and pool pumps. View their complete list of services online, or call (808) 548-4357 to schedule a photovoltaic system installation.