Tax Credit (ITC): Understanding Solar Investment

Everything You Need to Know About the Solar Tax Credit (ITC)

The Solar Investment Tax Credit (ITC) is a game-changer for homeowners looking to go solar. This federal incentive can significantly reduce the cost of installing a solar energy system, making renewable energy more accessible than ever. Whether you’re just starting your solar journey or planning to expand your existing system, understanding the ITC is key to maximizing your savings.

ITC Tax Credit

What is the Solar Investment Tax Credit (ITC)?
The ITC is a federal tax credit that allows homeowners to deduct a percentage of their solar installation costs from their federal income taxes. Established under the Energy Policy Act of 2005, the ITC has been a driving force in the adoption of solar energy across the United States.

How Much Can You Save with the ITC?
For residential solar installations completed between 2022 and 2032, the ITC offers a generous 30% tax credit on the total cost of your solar system, including labor and installation. 

For example:

  • If your solar system costs $20,000, you can claim a $6,000 tax credit.

The credit percentage decreases to 26% in 2033 and 22% in 2034, so acting sooner ensures maximum savings.

What Expenses Are Eligible for the ITC?
The ITC applies to a wide range of expenses, including:

  • Solar panels and inverters.
  • Mounting equipment and wiring.
  • Labor costs for onsite preparation, assembly, and installation.
  • Energy storage systems (batteries) charged by solar energy.
  • Sales tax on eligible expenses.

Who Qualifies for the ITC?
To qualify for the ITC:

  • You must own the solar energy system (not lease it).
  • The system must be installed on your primary or secondary residence, or a property you own (like a rental property or business).
  • The system must be new or being used for the first time.

How to Claim the ITC

  1. Install Your Solar System: Ensure your installation is completed within the qualifying timeframe.
  2. File IRS Form 5695: Use this form to calculate your residential energy credits.
  3. Claim the Credit on Your 1040 Tax Form: Enter the credit amount from Form 5695 into your main tax form.

Consult a tax professional if you have questions or unique financial circumstances.

Why Now is the Best Time to Act
With the ITC set at 30% through 2032, there’s never been a better time to invest in solar. Coupled with state and local incentives, as well as financing options like NC Solar Now’s 

No Interest and No Payments for 24 Months” offer, the upfront costs of solar have never been lower.

Trust NC Solar Now for Your Solar Installation
At NC Solar Now, we simplify the process of going solar. From helping you navigate the ITC to designing a customized solar system that fits your needs, we’re with you every step of the way.

Ready to claim your ITC savings and power your home with clean energy? Contact NC Solar Now today for a free solar quote!

About NC Solar NowNC Solar Now is your trusted local solar installation partner.  We are a pioneering force in empowering communities across North Carolina with sustainable energy solutions. As a leading solar provider, we specialize in designing, installing, and maintaining state-of-the-art solar systems tailored to meet the unique needs of our customers. 

NC Solar Now takes pride in being certified experts in solar installation, ensuring the highest standards of quality, safety, and professionalism in every project we undertake. Our team consists of highly trained technicians who are certified by leading industry organizations, equipped with the knowledge and expertise to deliver superior solar solutions tailored to your needs.

By choosing NC Solar Now, you can trust that your solar installation will be carried out with precision and attention to detail, meeting and exceeding industry standards. Our certifications not only demonstrate our commitment to excellence but also provide you with peace of mind knowing that your solar system is in the hands of skilled professionals. Experience the difference that certification makes with NC Solar Now and embark on your journey towards a brighter, more sustainable future today.

Committed to innovation, reliability, and environmental stewardship, NC Solar Now transforms spaces, illuminating a brighter, greener future for homes and businesses.  Join us in harnessing the sun for a cleaner, more sustainable North Carolina. Our staff is NABCEP Certified

Furthermore, we are certified by all major brands, including TeslaEnphaseSolarEdgeFronius, RECQCell, Ironridge, and others! Check us out on Facebook or Instagram. Visit us online at NC SOLAR NOWsend us a message, or call us at 919-833-9096.

Ready to Get Rid of Your Power Bill?

Contact us for a FREE Solar Savings Analysis! We’ll help you calculate how much your investment in solar will save you over time.

Get Started on Your Project Today

Are you still wondering if solar panels are right for you? Are you considering going green with your house but you’re concerned about the cost? Our team can walk you through any questions or concerns you have. Set up a no-obligation call with us, and we can explain all the benefits of solar power to your home (and to your bank account).
Contact Us
Terms and Conditions

Follow Us

NC General Contracting License No. 69583
NC Electrical Contractors License 33569-U

Raleigh


Monday through Friday
9:00 a.m. to 5:00 p.m.
Scroll to Top