- Dec 5, 2019 4:45 pm GMT
- 781 views
"If you’ve heard the same hard sell, don’t believe it. The federal credit is still available next year. It’s just slightly smaller: 26 percent of purchase and installation costs vs. 30 percent for 2019. For 2021, the credit will be worth 22 percent. After that, it really does expire for individuals. (Owners of a home-based business can still get a 10 percent business tax credit for systems installed in 2022 and after.) The Residential Renewable Energy Tax Credit, as the IRS calls it, can be an attractive way to save on the significant cost of installing solar panels or roofing. An average-sized residential solar system—about 400 square feet of solar panels—costs $18,000, according to the Solar Energy Industries Association, an industry group. The tax break reduces the cost by $4,680, to $13,320."