The biggest tax credit for residential solar, the federal solar investment tax credit, was expected to drop from 26% to 22% in 2021, and was expected to drop to 0% in 2022. Part of the recently passed federal spending package (included in the $900 billion COVID-19 relief bill) was an extension of the tax credit for two more years. That means that for projects installed in 2021 and 2022, the federal solar tax credit remains at 26%, and will fall to 0% in 2023. This is great news for the solar industry and for all who are thinking about going solar but have not yet done so. The wind industry also received a limited extension of its production tax credit.
Want to learn more about installing solar panels on your home? Read the Green Newton’s Learn About Going Solar FAQs.