What You Need to Know About Going Solar in 2021

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Update January 4, 2021:The 26% Solar Investment Tax Credit for both residential and commercial solar has been extended through 2022.

Are you considering going solar in 2021? There are a couple of considerations for the transition to clean energy at this time including the Solar Investment Tax Credit (ITC), installer schedules and supply chain disruptions. Learn more about what you can expect from your solar array installation process next year.

What you need to know about going solar in 2021

Solar Investment Tax Credit

In 2021 and 2022, both residential and commercial solar customers can benefit from a 26% tax credit on their array and this drops to 22% in 2023. During 2024, the commercial tax credit drops to 10% while the residential tax credit is fazed out. Learn more about the 2021 tax credit and what it looks like in the future.

Installer Schedules

Due to the change in tax credits in 2022, many people will be looking to go solar beforehand. Installers will get busy faster than any year before so don’t expect to be able to go solar if you sign a contract later than mid-year. Systems must be “placed in service in 2021” to claim a credit for the 2021 Tax Year. In service means that the array is installed and approved by the electrical inspector.

Contact Michigan Solar Solutions as soon as possible so we can schedule your project in. Before the pandemic, installations typically took 5-6 weeks from contract to completion. Now with COVID related issues including delays in utility company approvals, permit approvals and site inspections, installation times have been increased to 12 to 16 weeks.

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Supply Chain Disruptions

The solar industry may experience supply chain issues with so many projects in the pipeline, creating greater demand for panels that manufacturers just can’t keep up with. COVID has also already caused disruptions with the manufacturing and logistics of solar equipment that will carry into 2021. Be prepared for increased wait and install times for a 2021 solar project.

If you’re considering going solar in 2021, you don’t have much time to wait. Our solar installers will be quickly booked with projects and supply chain disruptions could lengthen the process. That being said, it’s a great year to go solar as you can benefit from the tax credit before it diminishes in 2022 and hedge against the 14.2% rate increase asked for by Michigan’s largest utility company.

Don’t hesitate, go solar today! See if solar is a good fit for your home or business.

Get a FREE Solar Analysis

If you or another business is interested in having an undeniable impact on your triple bottom line give us a call for a free consultation to see if solar is right for you! Call (248) 923-3456 or request a Free Online Solar Analysis for Your Business.

Michigan Solar Solutions is a commercial and residential solar installer and electrical contractor that has served the lower peninsula of Michigan since 2007. We have installed thousands of panels and have a happy customer near you, check out what our customers think of us Guild Quality.

Photo by Vivint Solar from Pexels

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Allison Schmuecker, Marketing Communications Specialist

Written by Allison Schmuecker, Marketing Communications Specialist

Allison is a creative marketer that specializes in digital marketing, content creation and website development. She has been with the MSS team since December 2018 as a key author of the MSS blogs, social media manager and more. Allison is passionate about sustainability and the solar industry and has participated in the Solar Decathlon Competition at the National Renewable Energy Laboratory (NREL). Allison has a degree in Marketing and a minor in Graphic Design from Michigan State University.


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