Solar tax credit is extended
Good news for new and future system owners! The 26% federal tax credit has been extended for solar projects installed in 2021 and 2022.
The solar investment tax credit (ITC) was scheduled to drop from 26% to 22% in 2021, but will stay at 26% for two more years. This means that solar projects in all market segments — residential, commercial, industrial, utility-scale — that begin construction in 2021 and 2022 will still be able to receive a tax credit at 26%. All markets will drop to a 22% tax credit in 2023. Beginning in 2024, the residential market will drop to 0% while the commercial and utility markets will sit at a permanent 10% credit.
The federal tax credit is equal to 26% of total solar project costs, including the cost of batteries and support structures like ground mounts, canopies and awnings.
Solar tax credit schedule is below: