The federal solar tax credit is also known as “ITC” or the Investment Tax Credit. If you purchase your solar system in 2021 and have it installed, the tax credit is 26% of your system’s cost. It includes equipment costs, labor, and any permit fees.
For example, if your system costs $20,000 your tax credit would be $5,200.
Keep in mind that this tax credit is scheduled to reduce to 22% at the end of 2022. So now is the perfect time to go solar to take advantage of the higher tax credit rate!