Solar Tax Credits & The Inevitable Sales Lingo
Updated: Nov 21
Exciting announcements from federal, state, and local governments that reduce your solar costs
Often in sales, you hear the phrase “There’s never been a better time to-” insert sales pitch here. It’s an advertising, attention-grabbing tactic as old as Moses, and one that is questionably literal at times.
At ACK Smart, we’ve managed to successfully get through days, weeks, even years of business without any token advertising one-liners, choosing instead to give you hard facts, data, and testimonies that allow you to make your solar decisions.
Plus, when you get to photograph your installation photos next to sweeping ocean vignettes, a picture says a thousand words anyway, right?
So believe us when we say, there has actually never been a better time to consider solar energy for your property, after a summer full of unparalleled support for renewable energy sources from both state and federal governments.
The first week of August, the Inflation Reduction Act was signed into effect by President Biden. It’s the most aggressive step the federal government has taken in combatting the impending climate crises in the country’s history.
In addition to reducing energy costs, the Inflation Reduction Act will expand tax credits up to 30% for energy efficient commercial buildings and newly energy efficient homes, with an added 10% for products manufactured in the United States - with ACK Smart Energy always trying our best to source US manufactured components, we are currently working out the details to unlock these additional tax credits for our customers.
If you install solar energy technology in your residence any time beginning this year through the end of 2032, you are entitled to a certain portion of nonrefundable credit off your federal incomes taxes, up to 30% of your eligible expenses, with no limitations on what those expenses amount to.
So essentially, regardless of what it costs to install a residential solar system, you are eligible to reclaim 30% of those accrued expenses.
Getting paid to save money and the planet? Genius.
According to the new law’s language, the same expenses covered under the old law are eligible for the new solar tax credit including:
Solar PV panels
Contractor labor for onsite preparation, assembly, or original installation
Permitting fees, inspection costs, and developer fees
All equipment needed to get the solar system running including wiring, inverters, and mounting equipment
Sales tax on eligible expenses
In a change from the previous law, eligible battery storage units must store at least 3 kilowatts.
In addition to the Inflation Reduction Act on the federal level, the Massachusetts state government signed into effect the Wind Energy Renewables Act. It’s a significant piece of legislation aimed at moving the state toward the goal of net-zero greenhouse gas emissions by the year 2050. The act is a key factor in the promotion of the offshore wind and solar power energy systems that are essential in accomplishing this goal.
For solar systems specifically, the act raises the exemption for net metering from 10 kilowatts to 25, with clients now being able to fully obtain the value of their excess energy credits.
Taking all of this good news down to the local level for consideration: this summer, Nantucket Island saw its highest energy use ever at 55 megawatts during the days of August 4-16; an 8% increase from last year’s already record breaking usage. For all of the development this island has seen, it’s time to start developing with the future of the island and its generations’ in mind.
And don’t forget with all the aforementioned recent good news that the local Nantucket residential solar rebate of $6,000 still exists.
So with the ability to check massive savings boxes at federal, state, and local levels - you knew it was coming, right? - there’s never been a better time to go solar!
Hey, one ad-heavy line in eleven years isn’t so bad right?