Does going solar make sense if government incentives disappear? Here’s the financial advice you should know before installing

If you’ve been waiting to go solar, now is probably the time to take the plunge before government incentives potentially go poof. 

That being said, even without the 30% residential Investment Tax Credit (ITC), installing solar panels is a “smart financial move” according to Emily Walker, director of content and insights at EnergySage, a leading solar company. 

In a blog post, President and Chief Operating Officer of EnergySage, Charlie Hadlow, laid out the fragile situation for the ITC. As part of the current budget bill going through Congress, the solar incentives might be phased out as early as the end of the year — nine years earlier than originally legislated.

According to Hadlow, the end of the ITC would result in a loss of $9,000 in savings for the average American who puts up panels. Undoubtedly, the ITC has made solar more financially available to many Americans while creating jobs and fueling the transition to clean energy.

Despite its benefits, “chances are high,” in Hadlow’s estimation, that the credit will be eliminated before the new year. That creates a lot of urgency because only solar systems that are fully installed and up and running by then will be eligible for the 30% tax credit. 

Moreover, phasing out solar incentives creates a domino effect of increased demand for the best installers. Equipment availability could also become a concern as homeowners rush to beat the deadline.

EnergySage’s free tools can help homeowners navigate the increasingly tricky market with solar installation estimates and the ability to compare quotes. The average homeowner can land up to $10,000 in incentives for solar purchases and installation with the company’s help.

Even without the ITC, there are strong reasons to install solar panels. Going solar is a great way to generate your own clean energy, save money on energy bills, reduce your reliance on the grid, and cut down on planet-heating pollution. 

As Walker told The Cool Down, homeowners are “projected to save up to $100,000 over the lifetime of your solar panel system.” Installation cost is typically paid back in seven to eight years while generating electricity for decades. 

Panels can also boost your home’s value and protect you from “unpredictable utility rate hikes,” Walker pointed out. Generating your own clean energy and helping the planet comes with a rewarding feeling, too.

If you’re serious about going solar, check out EnergySage’s mapping tool, which features the average cost of a home solar panel system on a state-by-state level, as well as details on incentives.

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