It’s that time of the year…tax time, that is. Every year we get questions from customers about filling out their solar investment tax credit (ITC) form. Now, we are not tax experts (so check with your accountant), but the rules are pretty straightforward for the solar ITC.
Basically, every homeowner who installs a solar electric system or solar hot water system (not a pool heating system) gets a 30 percent tax credit on the total cost of their system. This tax credit only applies to the owner of the system, not if you have a solar lease or solar power purchase agreement (PPA). There is no need to file for the ITC if you have a lease or PPA since the corporate entity that owns your system has already collected the tax credit and depreciation benefits — reducing your monthly payments accordingly.
It only takes a few minutes to fill out the IRS “Residential Energy Credits” Form 5695. For documentation, all you need are copies of all the invoices that apply to the installation of your home solar system. For more about getting your 2016 solar investment tax credit, Listen Up to the Energy Show on Renewable Energy World.
About the Energy Show
As energy costs consume more and more of our hard-earned dollars, we as consumers really start to pay attention. But we don’t have to resign ourselves to $5/gallon gas prices, $200/month electric bills and $500 heating bills. There are literally hundreds of products, tricks and techniques that we can use to dramatically reduce these costs — very affordably.
The Energy Show on Renewable Energy World is a weekly 20-minute podcast that provides tips and advice to reduce your home and business energy consumption. Every week we’ll cover topics that will help cut your energy bill, explain new products and technologies in plain English, and cut through the hype so that you can make smart and cost-effective energy choices.
About Your Host
Barry Cinnamon is a long-time advocate of renewable energy and is a widely recognized solar power expert. In 2001 he founded Akeena Solar — which grew to become the largest national residential solar installer by the middle of the last decade with over 10,000 rooftop customers coast to coast. He partnered with Westinghouse to create Westinghouse Solar in 2010, and sold the company in 2012.
His pioneering work on reducing costs of rooftop solar power systems include Andalay, the first solar panel with integrated racking, grounding and wiring; the first UL listed AC solar panel; and the first fully “plug and play” AC solar panel. His current efforts are focused on reducing the soft costs for solar power systems, which cause system prices in the U.S. to be double those of Germany.
Although Barry may be known for his outspoken work in the solar industry, he has hands-on experience with a wide range of energy saving technologies. He’s been doing residential energy audits since the punch card days, developed one of the first ground-source heat pumps in the early ‘80s, and always abides by the Laws of Thermodynamics.
This podcast was originally produced by Spice Solar and was presented here with permission.
Lead image credit: Patrick Breitenbach | Flickr
