Tax Benefits and Incentives
Evolving your energy has never been more cost effective.
Inflation Reduction Act
The Inflation Reduction Act restores and extends federal solar tax credits. This includes the residential and commercial Investment Tax Credit (ITC). Thanks to the bill, homeowners those who install solar between the start of 2022 through the end of 2032 will be able to deduct 30% of the cost from their federal income taxes, with non-profit entities receiving a 30% direct pay check from the IRS. If you owe less than that amount in federal taxes for the year you install your system, you can carry over any unused credit to the next year.
Residential (30% Tax Credit)
The Inflation Reduction Act brings the solar Investment Tax Credit back up to 30%. This means that homeowners who install a solar energy system can reduce their federal tax liability by 30% of their total solar installation costs. Anyone who installed solar in 2022 is also eligible to receive the new 30% tax credit.
Agribusiness and Commercial (30% Tax Credit)
The Federal Government is offering a 30% Investment Tax Credit for the installation of rooftop and ground mount commercial solar systems. This tax credit will be available through 2032, however California customers will want to act soon before the newly passed NEM 3.0 rates are enacted in April 2023.
Non-Profit (30% Direct Pay)
Prior to the Inflation Reduction Act non-profits were unable to utilize the tax benefits associated with owning solar systems.
With the IRA, the IRS will now directly pay non-profit entities the amount of tax credit earned by solar electricity projects, the base amount of which will be 30%. For example, a $100,000 solar project, earning a 30% tax credit: if purchased by a nonprofit, that nonprofit will now receive a $30,000 check from the US Treasury.
It’s also important to note that this provision of the Inflation Reduction Act, applies only to nonprofits; for profit entities will not qualify for this direct payment but will qualify for the 30% tax credit.
In addition to Federal rebates many counties and local utility providers provide incentives to homeowners for adding solar and home batteries.
Installing a system could also help you build home value. Depending on which California city you live in, your home value increase can be up to 4%.
Property Tax Exclusion
You may be able to exclude the property tax on additional home value created by adding a rooftop solar system. Learn more
Self-Generation Incentive Program (SGIP)
Rebates are available for the purchase and install of a home battery along with a rooftop solar panel system. These rebates vary based on battery storage capacity and utility provider.
How can we help?
We'll guide you through every step to maximize your solar ROI.
We're happy to discuss your options for federal and local solar incentives and provide you with an estimate of your monthly savings and rebate opportunities.
NewGen Energy’s team is the best in the business. We were extremely happy with their work ethic and commitment to our project.
For the Life of Your System
Beyond the Build
Every NewGen installed system comes with the peace of mind that your system will be cared for throughout it's useful life.