Solar Investment Tax Credit Incentive of 26% in 2020

A professional man's hand holds a pen over a document poised over solar panels.With the increase in green technology and awareness about climate change, it is no wonder the general enthusiasm for solar power in homes and businesses is on the rise. In fact, according to figures from Solar Energy Industries Association (SEIA®), solar energy has ranked either first or second in energy capacity added to the U.S. for every year since 2013. A big push for solar energy comes from the savings on the environmental impact and the savings on energy bills. Growth can also be attributed to new solar array owners taking advantage of the Solar Investment Tax Credit (SITC).

In 2020, the Solar Investment Tax Credit (SITC) offered by the Federal Government is 26%. Keep reading to learn more about the solar investment tax credit.

What is the Solar Investment Tax Credit (SITC)?

The SITC is an important policy from the federal government that has helped solar energy expand in homes and businesses across the U.S. It provided 30% in 2019 tax credit for new solar systems installed for clients on their residential commercial, and other set-ups. The 2020 credit allows people to offset 26% of their solar installation from their federal taxes, if they qualify.

This benefit helps homeowners make the shift toward solar power. The credit also helps businesses make an investment to drive competition and technology forward so their customers can get the best service and products possible. 

The Scale-Back Plan for the Solar Investment Tax Credit

As you can imagine, there has been debate for and against the SITC. Since legislation passed through Congress in 2015, the credit has been available for business and home owners through 2021. The tax credit is scheduled to scale back until 2022, however members of congress are debating extending it beyond 2022.  If you qualify, the plan is as follows:

  • 2020: New solar power systems for residential and commercial owners can apply to deduct 26% of the installation cost
  • 2021: New solar power systems for residential and commercial owners can apply to deduct 22% of the installation cost
  • 2022 and in the future: New solar power systems for commercial owners can deduct 10% of the installation cost - NO federal tax credit for residential customers
  • As with all tax issues, ensure you consult your tax professional to see if you qualify

A Strong Outlook for Solar Energy in Michigan

In addition to a growing number of commercial and residential customers going solar, the future of solar power in Michigan looks bright! According to the U.S. News, Michigan’s state government will invest in solar power, too. Under Governor Whitmer’s program called the “MI Power Grid,” residents, businesses, and utility companies will continue to be able to invest in clean, reliable energy.

Learn more about the Solar Tax Credit

A great way you can gain the benefits of solar energy and take advantage of the Solar Tax Credit is by working with a professional, local installation company such as Michigan Solar Solutions. We have been in business for over 13 years, providing our customers with affordable options to reduce their environmental impact while saving money on their energy costs.

Contact the closest Michigan Solar Solution location to you to hear more about your solar options. 

SPECIAL EDITION: Powering Michigan Forward Bills

It will soon be illegal for you to put solar panels on your roof; property or business. We must work together to convince our politicians to stop the utility companies from shutting down your right to own solar. Part of Michigan's 2008...

Ways Your City can Make Going Solar Easier

Residents, businesses, and municipalities across the U.S. are more and more readily taking advantage of alternative energy sources, especially solar power, than ever before. Millions of homes use solar to power their homes, reducing their carbon...

Winter Solar Production: What to Expect

To maximize your system’s energy production this winter, there are a couple of things you can do: 1. After a large snowfall, brush off and expose a portion of each panel. The panels will begin to produce energy and warm up melting...

Benefits of Solar Power for Schools and Universities

Most people only think of home or business uses of solar panels. Homeowners use solar panels to cover their electric bills. Businesses use alternative energy for many reasons, including being able to use the “going green” label. There...

Why Going Green with Solar Power is Good for Business

With the rise of alternative energy, there are even more options available to residential and commercial customers. Solar power provides many benefits for business owners, including increasing their value. This post will go through the top...

MSS Partners with Michigan State University Students at the Solar Decathlon Design Competition

In April, a group of 5 Michigan State University students traveled to Golden, Colorado to present their research in the U.S. Department of Energy Solar Decathlon Design Competition. The Solar Decathlon is a worldwide collegiate competition where students are faced with global sustainability issues and teams work to design energy efficient residences, work places, schools, and more that will appeal to their intended market.

Welcome to Our New Website!

  We've added great new features and updated our content to bring you the most up to date information about our company.  Check back often for updates.

NEW RGS Solar Shingles!

Michigan Solar Solutions is proud to announce our new product line, RGS POWERHOUSE™ Solar Shingles! MSS is proud to have been chosen as RGS's premier partner in the state and is excited to sell a product that was originally developed by...

DTE Requests 9.1% rate increase

According to an article in Crain’s Detroit, DTE submitted a rate increase of 9.1% for residential customers and 4.3% for commercial customers.  Industry professionals anticipate other electric companies in Michigan to follow...

Pearl Certification

Michigan Solar Solutions is Pearl Certified! Only the network of elite, highly-quality contractors can offer Pearl Certification. Michigan Solar Solutions is the only Pearl Certified solar contractor in Michigan. In other words, you can have...

Statewide Solar Home Tours

Learn About Solar From Your Neighbor 23nd Annual Michigan Solar Home Tour and Open House Coming to a Community Near You  LANSING – On October 6, the Great Lakes Renewable Energy Association (GLREA) is sponsoring the 23nd Annual Michigan Solar...

Emergency Power System: Grid-Hybrid

Michigan Solar Solutions wants to help homeowners to understand the value of having an emergency power system. The story below is meant to help homeowners understand what options are available and what benefits each option offers. As evening...
Page: 123 - All

The Average Return on Solar in Michigan is Over 10% Per Year

Michigan Solar Solutions - Solar Panel Installation Company - icon-sun
Want to discover how much you’ll save?

Using only satellite imagery and your most recent electric bill, our solar experts can provide a detailed proposal with up to 98% accuracy. The best part is there’s zero obligation and zero pressure. We’re confident once you see what you can save, you’ll upgrade to solar.

Is Solar Right for Me?