Below is a guide to the most important tax incentives available for your clean energy investment(s). Please note that Maine Solar Solutions does not provide tax advice, and this is for informational use only. We strongly recommend you work with a professional tax preparer.
2022-2032: 30% Tax Credit
Solar electric systems qualify for a 30% federal tax credit until 2032. This applies to both residential and commercial solar PV systems. This credit is a dollar-for-dollar tax credit and will reduce the amount of tax owed by the system owner before any deductions are applied.
BATTERY BACKUP: The 30% credit also applies to battery backup systems.
Starting in 2023, standalone battery systems (those installed without solar electric systems) will also qualify for a 30% tax credit.
Also, effective in 2023, batteries installed with a solar electric system will qualify for the 30% tax credit.
2033: Tax Credit Drops to 26%
Owners of residential and commercial solar and battery backup can deduct 26 percent of the cost of the system from their taxes.
2034: Tax Credit Drops to 22%
2035 and onwards: Expires
There will no longer be any federal credit for residential solar energy systems.
How The Federal Solar Tax Credit Works
This tax credit can reduce your federal tax liability and is applied when you file your taxes. Solar electric customers purchase the system at the full price, currently earn a 30% tax credit, and apply it to their tax liability when they file taxes (read our Solar Tax FAQS here to learn more).
If you’re considering solar panels, still make the move early
An increasing number of Maine homeowners are fixing their cost of electricity and seeing a great return on investment by investing in solar electric systems. And with more Maine homeowners converting their homes from fossil fuels to efficient electric heatpumps and heatpump hot water heaters, investing in a solar electric system has proven to be a great way to eliminate the impact of ever-increasing energy costs. As a result, Maine Solar Solutions has seen the demand for solar steadily increase these past few years, and we expect next year to have even higher demand as utility prices continue to climb.
Because solar power is an industry that requires skilled workers, it is very important to find credible and reputable solar companies with licensed electricians to work with. As interest in solar grows, work can stack up for months at a time, and you want to get on the schedule before we are all completely booked.
Our personalized solar site assessment and consultations are educational and always free, and we offer low-interest financing plans enabling you to go solar with no upfront cost.
