2023 Solar Incentives
The Passing of the Inflation Reduction Act Marks a Big Win for Homeowners & Businessowners Looking to Go Solar!
The newly passed Inflation Reduction Act (IRA) includes several provisions that will make it easier for you and your community to benefit from solar energy.
Here are the main takeaways from the bill:
- 30% solar tax credit is available for homeowners who install solar until 2032.
- Note: If you installed solar this year, in 2022, and you were expecting a 26% credit, you can now claim a 30% credit.
- Allows nonprofits, schools, and municipalities to take a cash payment in lieu of the 30% tax credit. As entities that don’t pay taxes, these institutions were previously unable to benefit from the credits.
- Solar battery storage installations are now eligible to claim 30%
- Expands the Rural Energy for America Program (REAP) to help farms and rural small businesses to go solar.
- Provides funding to help electric cooperatives and tribal communities go solar.
In addition to the Federal Income Tax Credit, your locality at a state, county, city, or town level may have additional solar incentive programs. Learn more about your local area’s solar incentives:
Federal Tax Credits, Rebates, Incentives, and Grants for Solar (Updated January 2023)
Solar ITC Details for Residential and Commercial Projects
The most recent Federal solar incentive, the Inflation Reduction Act, is valued at 30% of your total solar power system cost through 2022 to 2032 for residential and commercial properties. This means that you'll receive a tax credit of 30% of your system's cost. This credit is used when residential homeowners or commercial businesses purchase solar systems and have them installed. A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to the next year. You should check with a tax adviser to make sure you can claim the entire value.
The Solar ITC extension is included in the stimulus package legislation H.R. 133.
Solar Backup Batteries Qualify for Federal Tax Credit
Commercial Solar Federal Tax Credit
The commercial solar federal tax credit at 30% applies to all kinds of businesses, including farms, ranches, agricultural businesses, breweries, car dealerships, coffee shops, restaurants, outdoor industry retail shops, bike shops, and more.
USDA Grants for Solar
The United States Department of Agriculture Rural Energy for America Program (REAP) grants provide guaranteed loan financing and grant funding to agricultural producers and rural small business owners to purchase or install solar energy systems. Our team can help you go through the application for solar grants.
Local Solar Tax Credits, Rebates, and Incentives
In addition to the Federal Income Tax Credit, your locality at a state, county, city, or town level may have additional solar tax incentive programs. Learn more about your local area’s solar incentives:
Creative Energies has worked on several community-sponsored solar programs. We closely follow and advocate for renewable energy policies and programs, so we'll keep you updated to make sure you are getting all the available savings for your system.
Ready to take advantage of solar incentives?