Last year saw a record number of solar panels installed, and yet 2016 is already forecast to double that. The falling cost of solar is largely driving the rush, making it more affordable for homeowners to go green. They can also save some green while they're at it with the help of tax credits.
In this article for CBS News, Ray Martin details how the tax credits affect the overall cost of solar. For example, if the solar array cost $7,000, homeowners are entitled to a tax credit of $2,100. And since the credit is dollar-for-dollar, it cuts the cost of installing the solar array to just $4,900.
The tax credit was extended at 30 percent through 2019, after which it decreases to 26 percent for 2020, 22 percent in 2021 and expires at the end of 2021.
Homeowners can also claim a tax credit of 10 percent of the cost of energy-efficient devices installed on a principal residence, such as furnaces, central air conditioning, heat pumps, insulation and roofing. Ditto for new water heaters, windows and doors - or at least for 2016. This tax credit is set to expire at the end of the year.