Tax Reduction Consultation

Improve Your Financial Wellbeing – Explore the Tax Credits and Financial Benefits of Renewable Resources for Your Home

Home Solution Pros empowers people to achieve financial well-beingby navigating the myriad of tax credits and financial benefits available for homeowners who switch to solar energy. Discover how embracing the sustainable energy solution offers substantial savings from monthly energy bills. At the same time, leverage the tax credits and incentives from the federal government and energy companies to make a step toward your financial well-being.

So, here, a legitimate question may hit your mind: how much can you save per month by embracing solar power systems for your home? Home Solutions Pros, a leading home efficiency improvement service in the USA, helps clients save between $300 and $975 per month.

Is Solar Power a Worthy Investment for the Homeowners?

Let’s dive into some facts and figures to understand whether investing in solar is worth it or not. The average rooftop solar array for residential propertiesin the USA offers 5kW power capacity. Typically, the average solar installation cost in the USA is around $14900. This is the same price as a brand-new economy vehicle. However, a tax credit of 30% on the solar installation brings the much-needed respite to the homeowners.

If you consider the gross investment to be $14900, the federal tax credit will cut down your investment to $10,430. Another good thing is that the overall cost of solar residential installation is decreasing with time. However, waiting for it to become cheaper could be a mistake. Firstly, a decline in installation price does not guarantee that solar installation will be cheap in the future. Secondly, the tax credit will reduce with time.

Imposing the Inflation Reduction Act will reduce the 30% tax credit on solar installation to 26% in 2033. The tax credit will further reduce to 22% in 2034. Nevertheless, there are plans to phase out the tax credit on solar installation completely in 2035 unless Congress renews it. So, this is the best time if you want to embrace renewable energy for your home.

Solar Energy as a Hedge Against Inflation

Solar energy offers a compelling way to stabilize and reduce energy costs in the face of inflation. By investing in solar panels, homeowners can produce their own electricity, reducing dependence on the grid and insulating themselves from rising energy prices. Here’s how:

Fixed Energy Costs

Once a solar system is installed, the cost of generating electricity remains constant, unlike the variable costs associated with traditional energy sources.

Long-Term Savings

Despite the initial investment, solar panels typically pay for themselves within 5 to 10 years, after which the energy produced is virtually free.

Tax Credits and Incentives

The U.S. government offers substantial tax credits and incentives for solar installations, enhancing its appeal as a long-term investment.

Understanding Net Metering

Net metering is a critical policy that supports the adoption of renewable energy, particularly solar power, by allowing homeowners and businesses to generate their own electricity and receive financial credit for the excess power they contribute to the grid. This system is designed to encourage investment in renewable energy by making it more economically viable and appealing.

Energy Generation

The solar panels often produce more electricity than the household consumes.

Excess Energy

The surplus electricity generated is fed back into the utility grid. The surplus electricity is referred to as excess energy.

Credit System

In return, the utility company credits the homeowner for the excess electricity at the retail rate.

The credit that you receive from utility companies can offset future electricity bills when the solar panels aren’t generating enough power, such as during cloudy days or at night.

Are You Eligible for the Federal Tax Credit on Solar Installation?

If you meet all of the following requirements, you could be eligible for this tax credit:

Energy Use

The energy generated by your solar system does not exceed the total energy consumption of your home.

Ownership

You are not eligible if you are leasing the system. Also, you should not be under an agreement to purchase electricity generated by a system that you do not own.

Equipment Condition

The solar equipment is either brand new or in its first use. Only the original installation of the solar panels qualifies for the credit.

Solar Installation

Go solar if you want to escape the hefty energy bills forever. We offer top-quality materials for solar installation. Nevertheless, we educate clients on tax credits and grants you can leverage to reduce expenses.

Additionally, a taxpayer can claim an exemption under section 25D from the IRS to purchase a portion of a solar community.

How Can We Help?

If you are eligible for the Federal Tax Credit for solar installation, Home Solution Pro can help you further in installing solar panels to your home. After a detailed consultation, we procure client data to prepare for the applications for the most lucrative solar programs.

Once you receive approval from the electric company and state, we further assist you in solar system installation. Our team will further help you to file Form 5695 with the IRS. The mission of Home Solution Pros is to ensure that you save big on your monthly energy expenses and use the money for home improvements.

Schedule a Call from Our Team

You can schedule a call with our team to discuss more. We provide a detailed guide to the homomers who want to leverage the tax credits and other incentives on renewable resource.