There are big benefits and currently some major incentives for going solar. Today, we are talking with Eric Carslon of RevoluSun about solar as an investment and some of the incentives that are available for homeowners.
Eric wants viewers to remember these points about investing in solar:1. You are buying a lifetime of electricity at a fraction of the cost that you’d pay the utility for that electricity. 2. You are increasing the value of your home, for every thousand dollars you save with solar in a year, your home is worth 15 times that amount. 3. Solar + Batteries keep the lights on and the house operating, in the case of a major weather event or a long term power outage.4. Homes with solar sell faster and at a higher cost than a comparable home without solar.
There are currently two tax incentives; a 26% federal tax credit for solar systems, and our Hawaii State Tax credit, of 35% of the system cost (capped to $5,000). The tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000.
The tax credits were designed to help the solar industry have a level playing field with other more established energy sectors, such as coal, wind or oil. For the homeowner, the tax credits shorten the ROI on your solar investment, and while the tax credit is great for the homeowner, it’s also good for the State. Numerous studies done by the University of Hawaii, show that for every dollar that runs through the solar tax credit, it turns into $1 and half dollars back into our local economy.
“There are some big changes coming to tax incentives! The Federal tax credit initially started at 30% and has been stepping down every few years, we are at the 26% mark for this year, but January 1st of 2023 it drops to 22%. And unless it gets extended by Congress, the federal tax credit goes away in 2024.The state tax credit is currently stable, but that is something that could change any legislative season.That’s why we have a saying around here that ‘the best time to go solar was yesterday and the second best time is today’. We want to help as many homeowners go solar in 2022, but there are only so many calendar days in the year and we are about to enter our busiest season of the year, so we encourage people to contact us and get the process started!”
For more information, call 748.8888, visit www.revolusun.com or head to their showroom in Kakaʻako.