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Tax Credit to Solar Power: Know the government’s measure to encourage adherence to solar energy.

The Solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the growth of solar energy in the United States. It’s a 26% tax credit granted for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. The Section 48 commercial credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms.



It works as a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. The ITC is based on the amount of investment in solar property and both the residential and commercial ITC equal 26% of the base value invested in eligible solar property.

In 2015, Congress extended the Investment Tax Credit to encourage the deployment of solar energy technology. Currently, storage systems integrated with solar have proven to be a viable alternative in markets where conventional energy sources dominate the grid. Despite the benefits, renewable energy and storage projects face numerous regulatory and financing challenges.

The residential and commercial solar ITC has helped the U.S. solar industry grow by more than 10,000% since it was implemented in 2006, with an average annual growth of 50% over the last decade alone! It was a big step for our society, but we still have a long way to go in creating a cleaner future, once solar energy still represents only 2.5% of energy production in the United States.

You can count on Sunlight Solar to become a part of the change! We are continuously working for the advance of Solar Power in Florida. Ready to go solar? Get a free quote today!

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Orlando, Florida 32819

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