Going solar is a financial no brainer. What are the ways to purchase solar system?
Homeowners can pay for solar with cash, credit cards or financing. There are also solar lease options available, some even include no-money-down programs. However, you wouldn’t qualify for rebates or tax breaks if you lease the solar panels; those incentives go to the owner of the system.
For homeowners who are eligible to refinance into a lower, fixed-rate mortgage, a cash-out refinance might be a low-cost way to pay for a solar system, provided you can afford the monthly mortgage payments.
Finally, if you decide to make the clean-energy switch, be sure to look out for any federal, state and county-wide incentive programs, which could save you thousands of dollars. Politics can be unpredictable so take advantage of the tax credits available now. The federal tax credit of 30% will only be valid till 12/31/2019. After 12/31/2019 the federal tax credit will decrease to 26%. Then on 12/31/2020, the tax credit will be reduced to 22%. Now is the time to act in order to receive the tax credit advantage.
Before going solar contact your accountant to fully understand the tax credits impact on your financial situation.
Federal Solar Tax Credit*
The Federal Government offers a Tax rebate of 30% of your total solar system cost. There is no set cap to this rebate. It must be used on the same tax year that the system was installed.
State Tax Credit*
South Carolina has a state tax credit of 25% of the total cost of your solar system. This is capped at $3,500 or 50% of your tax liabilities. These tax credits can be carried out for up to 10 years.
Contact Solar Chief for free site evaluation and quote! We would be happy to discuss all of your financial options.