Residents in Austin can receive incentives from both the City of Austin and the federal government. Combined, these two credits can reduce the price of your system by a third, making going solar much more affordable. However, these incentives will not be around forever, so installing a solar system should be a priority for your home.
Federal 26% Tax Credit
Currently, the federal government is offering a 26% tax credit that can be applied when installing a solar photovoltaic system. When claimed, your federal taxes will decrease by the value of 26% of the cost of your system panels and installation. Here at Clean Choice Solar, we sell and install photovoltaic (PV) systems, making our customers eligible for this credit. This credit can be applied on all systems installed through the end of 2022, and any system installed in the year 2023 can receive a 22% credit. Beyond, there is no federal tax credit available. With no federal tax credit, a solar system would take 5 or more years longer to return a profit for the homeowner.
Austin Energy $2,500 Rebate
Austin Energy is offering $2,500 to those who install a solar PV system. After your install, our team here at Clean Choice will take care of your rebate application, and you will receive your rebate in the mail shortly after. The city of Austin has extended this rebate through 2027, but there are no plans to increase the amount up from $2,500. Thus, accounting for inflation, the sooner you install your solar system, the higher the value of your $2,500 rebate will be.
Why Wait?
While you could claim the 26% federal tax credit and $2,500 rebate for installation in December of 2022, it is not wise to wait that long. Any delays in receiving permits or panel delivery could push back installation, potentially missing the incentive cutoff dates. Aside from that, you still stand to gain more the earlier you install your system. The longer you have your panels, the longer you will not need to pay your electric bills. Additionally, the price of energy here in Austin rises between 4% and 6% annually. The sooner you become energy independent, the sooner you cannot be harmed by these rising costs of energy.
Have any questions about these incentives and if you qualify for them? Want to know more about our company and our passion for solar energy? Fill out our contact form, we would love to get in touch with you and give you a free quote for your home!
Ryan Sauer
Clean Choice Solar
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