The 30% Federal Tax Credit for solar installations has been a great incentive for people to add solar power to their homes or businesses. But as they say, all good things must come to an end. This is the last year that the full 30% tax credit will be available when you add solar to your home. The tax credit decreases to 26% in 2020, then goes down to 22% in 2021. Starting in 2022, the federal tax credit will be only 10%.
If you were considering adding solar power to your home, now is the time to do it, while you can still take advantage of the 30% tax credit. There is an IRS safe harbor in place, and as long as you have a signed contract with a solar installer and a 5% down payment in place by December 31st of this year, you then have until January 1, 2024 to complete the solar installation and put it into service.