We are part of the Delaware Green Energy Program. We are an approved solar installation contractor. We are also able to offer our customers a rebate on their solar installation project. The rebate is .60/watt, up to $3500 for residential installations. Commercial installations get .60/watt up to $25,000.
Federal tax incentives like the solar tax credit make solar energy cheaper and more profitable for the average homeowner. We recommend taking advantage of these credits quickly to get the most out of your investment. There is a 26% tax deduction for a solar system. Form 5695 is the form used to obtain the deduction
Anyone who pays for a solar panel installation on a home or business they own can claim the solar tax credit, as long as they have tax liability in the year of installation. What this means is, you have to owe taxes during the same year as the installation in order to qualify for the solar tax credit.
You can’t take a credit larger than the amount of taxes you owe, because the ITC is a “non-refundable” tax credit. You can, however, claim the credit over more than one year, and carry any leftover amount forward to the next year.
It’s important to note that when it comes to the residential ITC, the IRS says your system has to be “placed into service” by the end of the year to qualify for that year’s tax credit, but they don’t define “placed into service.” We’d say that’s when your system is fully interconnected and permission to operate has been granted by your utility company.
SOLAR ENERGY STORAGE:
Home solar batteries qualify for the ITC under certain conditions. IRS guidance number 201809003 specifies that battery installations for which “all energy that is used to charge the Battery can be effectively assured to come from the Solar Energy System” are eligible for the full solar tax credit.