Investing in Solar Energy
Investing in Solar Energy
{You can save money by investing in solar|It is possible to save cash by investing in solar|Solar energy can help you save on} {energy|power}. {It all depends on|It’s all about|It’s all dependent on} {where you live|the location you reside in}{, what incentives are available| and what incentives are offered| the incentives available} {from your state, and|by your state, and|from your state, as well as} {what type|the type|what kind} of system you {choose|select|decide to use}.
{You will need|You’ll need|It is necessary} to {request a quote for|ask for a quote for|get a quote on} {your solar panel installation|the installation of your solar panel} {in order to calculate|to determine|to calculate} the {expected solar panel ROI|anticipated solar panel ROI|expected ROI of solar panels}. The savings {can be significant|could be substantial|can be substantial} regardless of {your individual|your personal|the specific} {circumstances|situation}. A 5-kilowatt {system can|system could|solar system can} {result in a lifetime savings|yield a savings over the course of a lifetime|provide a lifetime savings} {of more than|of over|that exceed} {$38,000|38,000 dollars|$30,000} {in|for|within} Oregon {and $70,000 in|as well as $70,000 for|or $70,000 in} Nevada. {These are quite different numbers|These are very different figures|They are not the same numbers} {but still represent a remarkable|however they still provide a significant|but they are still a stunning} {return on investment|ROI} {for solar panels|in solar panel systems|on solar power panels}.
Is solar energy expensive?
It {can be difficult|isn’t easy|is not easy} to {decide whether you want|determine whether|decide if you’d like} to {invest in|make a decision on whether you want to invest in|put money into} your home, {especially|particularly} {if you are not familiar|when you’re not experienced|in the event that you’re not acquainted} {with|about} {solar|solar panels}. {Many homeowners have questions|A lot of homeowners are confused|Many homeowners are uncertain} {about how to install|regarding how to set up|about the best way to install} solar panels, {their|the|what they} {cost, and what|price, and how|costs, and even what} {they will|they’ll} {look|appear} like. {We hear the most common|The most frequently asked|We get asked the most frequent} {questions|concerns|inquiries}: “Is solar power expensive?” “Is it {worthwhile|worth the investment}?” {and|as well as|And} “Can it be {afforded|financed|funded}?” .
These are {crucial questions to|important questions to|the most important questions you can} {ask because solar is likely|consider because solar power is|inquire about because solar is probably} {just one of the many|to be one of the|to be just one of many} {investments you consider|options you can think about|investment options that you will be considering} {in a given|during the|in the course of a} year. {Another option is to consider|You could also think about|One option is to think about} {a new vehicle|the purchase of a new car|an upgrade to your vehicle}{, tuition or medical care| or tuition, or medical treatment| as well as medical or tuition}. {How can you tell|What can you do to determine|How do you know} {if solar is too costly|whether solar is expensive|whether solar is costly} or {the right|at the right|is the best} price?
What will it cost to go solar?
The {average|typical} rooftop solar {system|array|panel} {in|located in|within} the United States has a capacity of 5 kW. {At|With} \$2.98 {per Watt,|for a Watt of power,|per Watt} the{ current|} {average cost per|average price per|cost for a} {unit|system|device} {is|of solar panels is|will be} \$2.98 (the lowest {price ever|cost ever|price in history}). {This means that|That means|That means that} {an average solar installation will|the average solar installation will|an average solar installation would} cost {around|about|you around} {\$14,900|14900 dollars}. {That’s about the same|This is about the same price|It’s roughly the same amount} as {a new economy sedan|the cost of a new economy car|the price of a brand new economy vehicle}. {The federal solar|Federal solar|Solar energy is a federal issue.} Investment Tax Credit (ITC) {gives you|offers|provides} 30% off {solar|of solar} installation costs, {provided|if|as long as} you {don’t|do not} lease. {This could bring|It could reduce|The ITC could lower} the{ average|| total} cost {down to $10,430|to just $10,430|down to around $10,430}.
The {price of residential solar|cost of solar for residential use|cost of solar panels for residential homes} is {falling|decreasing|dropping}{, but| however,| but} waiting {until it becomes even|to see it become|for it to become} {more affordable could prove to|cheaper could|cheaper may} be a {bad idea|mistake|risk}. {Consider how long you intend|Think about how long you plan|Take into consideration how long you’ll need} to {live in your home|stay in your house|remain in your home}{, as well as| and| in addition to} other {factors like|aspects like|factors such as} {the expiration or extension of the federal tax credit|extensions or expiration dates for the Federal tax credit|whether or not the tax credits will expire or extend} (currently extended {to|until} 2022).
Are solar energy payments taxable?
What is {a|an income|the} tax credit?
{A tax credit is|Tax credits are} {a reduction of the|an exemption from the|reduced} {income tax that you would|tax on income that you’d|income tax you would} otherwise {have to pay dollar|pay|be required to pay} for dollar. A {$1,000 federal tax credit|tax credit of $1,000|$1000 federal tax credit} {can reduce|could reduce|can lower} {your federal income taxes|the federal tax on income|your federal income tax} by {$1,000|$1000}. {Although the federal|While the federal tax|Even though the federal tax} credit is {sometimes referred to|often referred to|sometimes referred} {as|by the name of|in the form of} ITC {or an|as an|also known as} Investment Tax Credit, this {is not the same as|is not the same thing as|isn’t the same as} the ITC {accessible to solar-powered businesses|available to solar-powered businesses|that is available to solar-powered companies}.
What is the federal solar credit?
Federal {residential solar energy credit|solar energy credit for residential use} {can be claimed as|is} {a tax credit on|an income tax credit for|a tax credit when filing} federal income {taxes|tax}. {It is for a certain|It’s for a specific|It’s a certain} {percentage of the price|amount of the cost|percent of the cost} of {a solar PV system|the solar PV system|solar PV systems}. Other {types|forms|kinds} of renewable energy {may also|could|might} be eligible for {similar credits|the same credits|credits similar to this}{, but they are not| however they are not| but they aren’t} {covered in this guidance|included in this guideline|mentioned in this document}.
The system {must|has to|should} be {in use|operational|operating} {during the tax year|in the tax year|throughout the tax year in order} to {generate|produce} electricity for {a residence|homes|residences} {in|within|located in} the United States. The IRS {does not have a|has no|doesn’t have a} {clear-cut test for what constitutes|specific definition of what is|precise definition of} “placed {into service,|in service|to service}” {but it has defined the term|however, it defines the word|although it does define the phrase}{ as completed|”completed” as an|”placed into service” as a completed} installation.
Congress {approved|has approved|authorized} an extension {to|of} the ITC {in December 2020|in December of 2020|in December 2020}. It {provides 26%|grants 26%|offers a} tax credit {for systems that were|for systems|to systems} {installed between 2020-2022 and|installed between 2020-2022 , and|constructed between 2020 and 2022 and} 22% {for those|for systems|to those that were} {installed|that were installed|constructed} between 2023-2023. Systems {installed prior to|that were installed prior to|installed prior the date of} {December 31|the 31st of December|November 30}, 2019{,|} {were eligible for a 30|could qualify for a 30|were eligible for a 30-year}{%| percent} credit. {Unless|If} Congress {renews|extends} the credit{, the tax credit| and the tax credit is renewed, it| in 2024, the tax credit} {will expire in|is set to expire by|runs out in} 2024.
{There is no limit|You are not limited|It is not a limit} {to|on} the amount you {can claim|are entitled to claim}.
Am I eligible to claim the federal solar tax credit?
If you meet{ all of|} the {following criteria|requirements listed below|following requirements}{, you may| You may| then you could} be {eligible|qualified} {for this tax credit:|to receive this tax credit.|for this tax credit}
- {Between January 1|From January 1st|Beginning on January 1}, 2006{,|} {and|until|through} December {31, 2023, your|31st, 2023, your|31, 2023, the} solar PV {unit was installed|system was installed|system was put in place}.
- If the {electricity|power|energy} {generated|produced} {by the solar PV|from the PV solar|through the} system {does not|doesn’t} exceed {your home’s electricity use|the electricity usage of your home|the energy use of your home}{, it can be credited| the system can be credited| It can be used to credit} {against your home’s|towards your home’s|to your} {primary or secondary residence|principal or second residence|main or secondary home}. {A taxpayer can claim|Taxpayers can get|A taxpayer may claim} {a section 25D tax credit|an exemption under section 25D|the tax credit section 25D} from the IRS {for purchasing a portion|to purchase a portion|when purchasing a part} of a {community-scale solar project|solar community|community-scale solar system}.
- {The solar PV system|Solar PV|This solar system} {is yours|you own} (i.e. you {bought it with|purchased it with|bought it using} {cash or financing, but|money or credit, but|cash or with financing, however,} {you are|you’re} not leasing the {system nor|system or|solar system, nor are you} {in an arrangement to buy|any arrangement to purchase|under an agreement to purchase} electricity from a {system that|system|solar system} {you don’t own|you do not own|isn’t yours}).
- {The solar PV system|Solar PV equipment|This solar system} {is either|is|may be} {new or being used|brand new or is|new or} {in its first use|for the first time|in its initial use}. Only the {original|initial} {installation of the|setup of|construction of the} solar {equipment|system|panel} is {eligible|qualified|acceptable} {for credit|to be credited}.
Are tax credits for solar energy refundable?
Are you seeing your employer putting off taxes?
{The majority of|A majority|Most} Americans {have their employers|are employed by their employer who} automatically {hold|deduct|collect} {their taxes from|the taxes on|their taxes out of} their {paychecks|pay checks}. {It is much simpler|It’s much easier|It’s easier} to calculate your {taxes|tax bill} at {year’s end than having|the end of the year than|the end of the year rather than having} to {be your own accountant|hire an accountant on your own|work as your own accountant}. The amount {that is held|you are able to hold|of tax you pay} back {will vary depending on|is contingent upon|can vary based on} your {income, but|income, however|earnings, however,} {most people will have|the majority of people will pay|most people will pay between} {hundreds to thousands|thousands to hundreds|hundreds or thousands} of dollars {in income taxes|in taxes on income|of income tax}.
The ITC {is here to help|is here to assist|can help you}. The ITC {covers|will cover} {26 percent of the|26 % of your|26,4 percent of} {installation cost|cost of installation|installation costs}{, not only| and not just| not just} the panels{ but also the|, but also} solar components{ like your|, such as your| such as the} inverter and {racking|rack|the racking} system. It {can also cover|also covers|could also cover} {a battery backup system|batteries that are used to backup your system,|the battery backup system} {such as|like} {the|Tesla Powerwall.|that of the} Tesla Powerwall, provided that you {use|make use of|are using} {renewable energy to charge|the renewable power source to recharge|solar energy for charging} {it|the battery}. {There is no cap on|There is no limit on|There’s no limit to} the {federal ITC’s dollar amount|amount of federal ITC’s dollars|federal ITC’s dollar value}.
Let’s {suppose you have|say you have a|assume you have a} {\$20,000 solar installation|an installation of \$20,000|the solar system worth \$20,000}. {Now, let’s say|Let’s suppose|Let’s assume} {you have a solar installation|you have a solar system|that you own a solar array} {worth|that is worth|valued at} {$20,000|$20,000}. {The federal|Federal|It is the federal} ITC is a{ $5,200|} tax credit. {After all taxes have been calculated,|Once all tax liabilities have been calculated|When all your taxes are calculated} {this|the} credit is {applied|added} to {your total taxes|the total amount of taxes|the amount} due, {reducing your|which reduces the amount of|reducing the} tax {owed by $5,000|liability by $5,000|due by $5,000}.
You’ll {owe|be liable for|have to pay} {$14|14|the tax of $14} 605.50 in federal {taxes|tax} {if you earn $85,526 per|If you earn $85,526 a|when you earn $85,526 each} year (the minimum{ amount|} {for the fourth federal income tax|to be taxed in the federal fourth income|that is required to qualify for federal tax in the 4th income} bracket). {This amount will be deducted|The amount is deducted|The tax amount will be taken} from your {paycheck|pay|salary} {by your employer|from your company|through your workplace}. {You would only owe|The amount you would owe is|It would be only} $9405.50 {if|If|in the event that} you {had|were to have} {your|the} {federal|Federal|ITC from the federal} ITC {valued at $5,200|worth $5200|estimated at $5,000}.
{You would have to return|You will have to pay back|You’ll have to pay} the $5,200 {your employer withheld|that your employer took|tax deduction your employer took} from you. {You will receive|You will get|The employer will pay you} the {$5,200 in taxes back|tax refund of $5,200|tax amount of $5,200 back}. {This is basically a refund|It’s basically a refund|It’s basically a reimbursement}.
What happens if there's still credit?
{However, there are situations|There are instances|However, there are some situations} {in which|where|that} the solar ITC {will not give you|cannot provide you with a|won’t give you a} {a full refund|an entire refund|the full amount}. The {$5,200 amount that was|amount of $5,200 that was|$5,200 amount} {applied to someone with|used to pay|given to a person with} {$3,000 in tax owed|tax due of $3,000|$3000 in tax due} {will not be returned|is not refundable|cannot be refunded}. Instead{, the credit will reduce| the credit will decrease| the credit will reduce} {your amount to $0|the amount to zero|the amount you owe to $0} and {give you $3,000 back|refund you $3,000|you will receive $3,000 back}. {Then, it will|It will then|After that, it’ll} {roll over to the following|be carried over to the next|carry over to the next} year, {where you can|and you will be able to|when you are able to} {apply any remaining|use any|add any remaining} federal ITC {to your taxes|on your tax returns|to your tax bill}.
{This is a significant|This is a major|It’s a big} {difference to a refundable credit|contrast to a refundable|distinction from a refundable credit} tax credit. A {refundable credit would allow|credit that is refundable allows|credit that can be refunded would permit} you to {get $3,000 back|receive $3,000 back|claim $3,000} {if you spent|when you spend|in the event that you spent} less than{ $0 on the|} $5,200. The IRS {would then send|will then issue|will then mail} you a check {for $2,200|of $2,200|for $2200}.
{You must owe income taxes|Taxes on income are required|You have to pay income tax} {to maximize your|to get the most benefit from|in order to maximize your} {federal solar tax credit|Federal solar tax credit|credits for federal solar taxes}{ returns|}. The {federal solar credit is non-refundable|solar tax credit for the federal government is not refundable|solar tax credit is non-refundable} and you {will not|won’t} {be able to get any|be eligible to pay|receive any} income tax{, whether|, regardless of whether| if} you {are receiving|receive} {social security benefits or from|social security benefits or|Social Security benefits or} {your primary source of|your main source of|the source of your} income.
[xfield_company] discourages people from {going solar if they don’t|going solar if they do not|making the switch to solar if they don’t} {owe federal income tax|have federal income tax to pay|pay federal income tax}. Solar {has become|panels have become|is becoming} {more affordable in recent years|cheaper in recent years|more affordable in recent times} {because of|due to} the ITC. {Your solar installation|Solar installations|The installation of solar panels} {will be more costly|is more expensive|will cost more} {without the tax credit|with no tax credits|even without tax incentives}.
Are solar energy stocks a good investment?
{According to|Based on|As per} the [xfield_company], the average solar investment tax credit (ITC) was {introduced|first introduced|announced} in {2006|the year 2006}. It has {led to|resulted in} {a 52% annual growth|an increase of 52% annually|the growth rate of 52% per year.} rate. {Moreover, increasing|Furthermore, the growing|In addition, growing} demand {will likely lead to|is likely to result in|could result in} {increased profits for solar companies|higher profits for solar companies|greater profits for solar firms}.
[xfield_company] is a {convenient way to invest|ideal way to invest|suitable investment option} in the{ sector of| field of|} solar energy. {This company makes|The company produces|The company manufactures} solar power {equipment, products|equipment, items|products, equipment} {for end users, and|for consumers, as well as|intended for the end-user, as well as} equipment {used by|for|utilized by} solar panel {manufacturers|makers|producers}{, solar installers, or| solar installers,| and solar installers or} {companies specializing|businesses that specialize|companies that specialize} in {solar cell manufacturing|the production of solar cells|the manufacturing of solar cells}. The {fund’s return was|return of the fund was|fund’s returns were} -15.59{% on a year-to-date| percent on a year-to date| percent on a calendar-year} basis{ and|, and} 41.10{% over a three-year| percent over a 3-year| percent over a three-year} period.
How does solar energy save money?
{You might|It is possible to|There is a chance that you’ll} be {skeptical when you look|skeptical|a bit skeptical when looking} at the {initial cost of|cost that is initially associated with|initial price of} solar {power|energy}. Solar panels are {a great|an excellent|a good} investment{, and they can| and can| and will} {pay for themselves over|be paid back over|become a viable option over the course of} time. The {environmental benefits|benefits for the environment} {of solar energy|from solar power|that solar panels bring} are{ well|} worth the {effort|time and effort|investment}. [xfield_company] is passionate to {educate you about|inform you about|help you understand} renewable {energy|energy sources}. We’ve {compiled|put together|created}{ a list of|| the following} three ways {that solar energy|solar power|in which solar energy} {can save you|will save you|can help you save} money. Visit our {website to get|website for|site to receive} {a free quote if you|an estimate for a no-cost quote if you|an instant quote if} {are interested in switching|are considering switching|would like to switch} to solar {power|energy}.
Reduce or eliminate your electric bill
{Your average energy consumption|The amount you use for energy|Your energy usage average} and {how many|the number of|the amount of} panels {you have available for|you have in|are available to} your home {can impact|will affect|could affect} the {cost of your electricity|price of your electricity|cost of your electric} bill. {The cost of electricity|Electricity|The price of electricity} is the {largest monthly expense|biggest monthly expense|most expensive monthly cost} {for|of|in} American households. {Years of not paying for|The years of not having to pay for|A few years without paying} electricity {will quickly pay off|can quickly pay for|will soon pay off} the initial {installation costs|cost of installation|costs of installation}. {Even if your goal is|If your aim is|Even if you’re trying} to {become energy independent|be energy-free|go energy independent}{, it’s possible to| you can| it is possible to} {save money and only use|reduce your expenses and only use|save money and only rely on} {your local grid when|the local grid when|your local grid only when} you {are in need|need to|require it}. It’s {easier than ever|now easier than ever before|never been easier} to {get your electricity|bring your electric|keep your electric} {bill under control with the|cost under control thanks to the|bill in check thanks to} {advancements in batteries and|advances in batteries and|technological advancements in batteries as well as} backup generators.
Tax incentives
{Any commercial or residential|Anyone who is a residential or commercial|Every residential or commercial} {property owner who invests|homeowner who has invested|home owner that invests} {into|in} {their own solar power|the solar energy of their home|your own solar-powered} {system may|system could|systems may} {be eligible for tax|be eligible for tax-free|qualify for tax} {incentives from the|incentive from the|benefits from} U.S. Government and some {state|states’} governments. The {incentive was once|incentives were once|incentive was previously} {as high as|up to|at times as high as} 26%{, but it|, however it| but} {will drop|is expected to drop|will be reduced} to 22{%| percent| percentage} {by 2020|in 2020|by 2020}. {These incentives are intended|The incentives are designed|These incentives are meant} to {offset the initial cost|reduce the initial cost|help offset the initial costs} {for solar energy|of solar energy,} and {make it more affordable|help make it more affordable|will make it easier} for homeowners to {adopt|invest in|take advantage of} solar {energy|power}.
{A smart investment|An investment that is smart|An investment with a high return}
{For many reasons,|There are many reasons why|Many reasons make} solar {energy is a good|energy can be a great|power is an excellent} investment. Solar panels can {increase|boost|improve} the {equity of your home|value of your home|equity of your house}{, particularly| especially| particularly} in states that {support|are supportive of|promote} renewable {energy|energy sources}. {You can also|It is also possible to} invest in the {rapidly growing|fast-growing|growing} solar {industry and support|industry , and also support|sector and help} local solar {companies|firms|businesses} {like|such as} [xfield_company]. {While solar has|Although solar energy has|While solar power has} {become more affordable over|been more affordable in|been able to be purchased for less in} the {past few|last few|past couple of} years, the {cost|price} of nuclear energy {remains|is still|is still very} {high|expensive|costly}. {Newer, better technology|The latest, more efficient technology|Technology that is more advanced and better} is {constantly being developed|being developed constantly|continually being developed} in the solar {industry|sector|field}. Solar panels {can last a|last for a|can last for a} {long time and don’t need|long time , and do not require|longer time and don’t require} {much|any|regular} maintenance. Solar panels{ will| can|} last for {many years|a long time|years} {if you take care of|when you care for|provided you maintain} them. {You might|It is possible to|You can} {encourage your neighbors to|convince your neighbors to|help your neighbors} {switch to solar energy|change to solar power|make the switch to solar energy}{, which can help| and| that can} {contribute to a better future|create a better future|in ensuring a better tomorrow} for {the|our} planet.
What solar energy companies to invest in?
{Many people and businesses|A lot of people and companies|Many businesses and individuals} {want to reduce|are looking to reduce|wish to lower} {their carbon footprints|the carbon footprint of their operations}. Solar energy is{ becoming| now|} {an increasingly popular option|more and more popular as an alternative|increasingly popular alternative} {to oil and natural gas|in comparison to natural gas and oil|for natural gas and oil}. {Since 2014,|In 2014|From 2014 on,} the {cost|price} of solar panels {fell|has dropped by|dropped} 70{%| percent}. It is {expected|predicted|anticipated} that {more than one-seventh of homes|more than one-seventh of all homes|over one-seventh percent of homes} will have rooftop {panels|solar panels} {by|in} 2030. {The|It is expected that the|In addition, the} U.S. government will also {expand its solar energy plans|increase its solar energy programs|extend its solar energy plans}.
Solar energy is {becoming more|becoming increasingly|getting more} {popular|well-known|sought-after} {in|across} America {and all over|and across|as well as across} the {globe|world}. {It’s not surprising that|This is not surprising since|So it’s no surprise that} {solar|solar-related} stocks {have become a popular|are now a sought-after} investment. {These stocks offer investors|They offer investors|They provide investors with} {long-term opportunities, as|long-term benefits, since|longer-term prospects, considering that} the {sector of renewable energy|renewable energy sector|field of renewable energy} is {expected to grow rapidly|predicted to expand rapidly|expected to grow quickly} in the {future|near future|coming years}. {While solar energy stocks are|Although solar energy stocks can be} {volatile as the industry|unstable as the market|fluctuating as the sector} is {still expanding|growing|expanding}{, they are still| however, they remain| but they remain} {a popular investment option|an investment choice|an option} for {many investors|investors,} as the country {transitions|shifts away|moves away} from fossil fuels {towards|to|and towards} renewable {resources|energy sources}.
You can {reduce|cut down on|lower} {your electric bill or|your electric bill , or|the cost of electricity or} {eliminate it entirely, offset|completely eliminate it, reduce|completely eliminate it, offset} {your carbon footprint|the carbon emissions|any carbon emission}, {increase|boost|enhance} {the value of|its value, increase the worth of|you value for} your {home,|home|house,} and {be completely|become completely|be totally} or {partially energy independent|partially energy-free|in part energy-free} {by switching to solar energy|by switching to solar power|through switching to solar energy}. [xfield_company] will make {your transition|the transition|your switch} to solar power {smooth|seamless|easy} and {easy|simple}. Our {licensed solar technicians|certified solar technicians|solar experts are licensed and} will install a {lasting|long-lasting|reliable} solar system. [xfield_company] is the {right choice if you are|best choice for those|ideal choice if you’re} {looking to switch|seeking to make the switch|trying to transition} to solar {energy|power}. {For a free quote|To get a no-cost quote|For a free estimate}{, call| contact us| make a call} {or visit our website|(800) or go to our site|the number listed or check out our web site}!