Homes, much like a business, require electricity, a variable, increasing and perpetual expense, as a necessary cost of doing business. In fact, in Tampa Bay, electricity costs have increased by 62% in just 4 years from 2019-2023! Source provided below:
Switching to solar allows you to fix this compounding, increasing cost as a perfect hedge against energy inflation while allowing you to budget the cost more accurately at a reduced price over time and with an end date if choosing ownership. This transfers your electricity expense liability to an asset and reallocates money already being spent each month into payments that build equity in your own system, much like switching from renting a home to a mortgage but better through the most lucrative tax credit in government history!
Currently, homeowners with tax liability are potentially eligible to claim the following benefit on their residential solar project: (Consult a tax professional to determine eligibility)
The Inflation Reduction Act (IRA) of 2022 establishes and extends the federal Investment Tax Credit (ITC) for solar photovoltaic (PV) systems at a rate of 30% of the total PV system cost. The 30% ITC was extended for 10 years, through 2032. Unlike tax deductions, this tax credit can be used to directly offset your tax liability dollar for dollar. The IRA extended the carryback period to 3 years, and the carryforward period to 22 years, in cases where the tax credit exceeds a customer’s tax liability in the ‘placed-in-service’ year.
If you don’t pay taxes, or don’t have tax liability, a lease might be the perfect option for you! Solar leases allow you to fix your electricity expense for 25 years at a lower rate while transferring the tax credits to other parties.
