Does a New Roof Apply to Solar Tax Credits?
When deciding to install solar panels in Orlando Florida, one of the first questions you may ask yourself is, should I re-roof my home? And your next question might be will any of the solar tax credits apply if I do?
Our team here at Solar Bear Orlando is here to help you get the facts straight about solar tax credits so you can make the best decision for you. Keep reading to learn more!
What are Solar Tax Credits?
The Federal Investment Tax Credit, also known as a Solar Tax Credit, allows you to deduct a percentage of the cost of your solar installation from your annual federal taxes. The structure follows this pattern:
- In 2022 the savings are 26%
- By 2023 they will drop to 22%
- In 2024, it will be 0%
The Solar Tax Credit will cover all labor, equipment, and installation costs for your solar system, and can also be carried into the next year if you can’t take the full credit in the year that your solar system was installed.
Though we are knowledgeable about solar tax credits, we are not tax professionals, and all the information in this blog does not and should not constitute professional tax advice. You should always consider advice from a professional when making important tax decisions.
How Much Can You Save with the Solar Tax Credits?
Let’s create an example: If your solar installation costs $10,000, you could be eligible for a tax credit of $2,600, thus reducing your costs significantly.
Is a New Roof Eligible for Solar Tax Credits?
So, what if you plan to re-roof your home in conjunction with installing solar panels. Does the Solar Tax Credit apply? The short answer? No.
Many solar installers in Florida might tell you otherwise, but don’t listen to them. The last thing you want to do is end up in trouble with the IRS.
Here is what the IRS says:
Tax reductions only apply to qualified solar electric property costs. Here are some guidelines:
- The solar energy that generates electricity for use in a home located in the United States
- Costs cannot relate to a solar panel or other property installed as a roof
- Cannot be a structural component of the structure on which they are installed
- Some solar roofing tiles or shingles can qualify for the solar credit
- The home doesn’t have to be your primary residence to qualify
Do I Need a New Roof?
Before installing solar panels, it is important to consider the age of your roof. Our best advice: don’t install solar panels on an old roof. You won’t want to pay a contractor to remove the solar panels and have to put them back up after you replace your roof.
Yes, it is a bummer that the Solar Tax Credit does not apply to a new roof, but it is better to do the job right the first time!
Before installing solar panels, consider:
- HOA regulations
- Your roof’s warranty
- Does your roof get enough sunlight? Is it shaded by trees most of the day?
- Hiring a company like Solar Bear that does roofing and solar panel installations
- Installing solar panels on the ground or a shed or outbuilding can be a great option if you have a new roof already
- Having your roof inspected before installing solar to ensure it is in great condition
Trust the Experts
If a solar company is offering you a new roof with the promise of solar tax credit reductions, consider their intentions.
Here at Solar Bear Orlando, we’ll never steer you wrong, and can help you decide what is best for your home if you do decide to install solar. Ultimately, before making any decisions, you should talk to your tax professional to ensure that what you are planning to do falls under the Solar Tax Credit guidelines.
Go Solar in Orlando
If you are interested in installing solar panels in Orlando, Florida, or the surrounding Central Florida area, contact Solar Bear! We are one of the Sunshine State’s leading solar installation companies and would love to help you save big on your solar installation with the Solar Tax Credit in 2022.
Don’t wait. Take advantage of these tax credits before they’re gone! Call Solar Bear Orlando to get started today; 407-904-7585!