Keep More Of Your Money
We’ve covered many of the reasons it pays to go solar. Harnessing the sun’s energy and converting it to energy for your home allows you to drastically reduce your utility bills each month.
With utility costs continually on the rise, one sure way to protect against unpredictable increases is to install a solar energy system. But you still may be wondering about the costs of solar panels in Sacramento. On top of the monthly savings on their energy bills, homeowners who have solar panels installed may be eligible for the federal solar tax credit.
The Solar Tax Credit states that an individual may claim a credit for 26% of the cost of the system, against federal income taxes due for the taxable year. As long as you own your solar system, and pay federal income taxes, you may be eligible for the credit. Consult your tax advisor to see if you qualify to help lower the cost of installing solar panels in the Sacramento area.
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How to Use the Solar Calculator
Looking to reduce energy costs? Solar panels for your Sacramento home can greatly reduce your energy bills. The size of your solar system, in Kilowatts (kW) is determined by how much energy you use in your home. We know that some months we use more electricity than other months. Running an air-conditioner May through August will cause higher utility bills than running the furnace October through March. The remaining months (we call the “shoulder seasons”), is when your solar system cranks-out energy credits you can bank for the future.
The number you put in the Solar Calculator is the monthly average in Kilowatts. Log onto your account or contact customer services at your local utility provider. Add up the prior 12-months of consumption in Kilowatts and divide that number by 12 to get the monthly average. That is the number you put into the Solar Calculator.
Watch the video for more information.
Solar panels utilize the photovoltaic effect to power your home and save energy.
Federal Tax Credits
The federal solar tax credit allows you to deduct a percentage of the installation costs from your federal taxes, and this was just extended at the end of 2020 as part of Congress’s latest bill. As long as you own your residential solar system, you are eligible for the solar tax credit.
Our friendly team of experts at Home Solar can also help you understand the ins and outs of the various financing options available, including two of the most affordable options to finance your residential solar energy system.
We are happy to discuss the advantages of long-term financing like a Home Equity Line of Credit (HELOC), which allows smaller monthly payments over a longer term. A HELOC usually has provision for Interest Only payments as access to additional funds for an emergency.
We can also provide details on the PACE (Property Assessed Clean Energy) financing option, which is offered through the county tax assessor’s office. Call us to discuss which option may be the best for your circumstances.