As we wrap up the holiday season, we can officially turn our eyes toward 2020 and the upcoming new year. If you didn’t get your residential or commercial solar panels installed in 2019, there are some big changes that you should be expecting for this year. Luckily, our team has put together some helpful information to help run down all the updates and changes to the solar industry for the new year.
Tax Credit Drops
First and foremost, the biggest change you can expect in 2020 in terms of solar is a decrease in the solar investment tax credit (ITC). In 2019, a new solar installation came with a 30% federal tax return credit, meaning your cost for installing a new residential solar panel system would be reduced by nearly one third. Thousands took advantage of this incentive, and 2019 was one of the busiest years ever in the solar industry.
However, Congress did not extend the tax credit in full for the new year, meaning that the ITC rebate will drop to 26% in 2020 (and then continue to decrease annually through 2021). While the decrease means you won’t save as much on your panel installation, there’s still a lot of incentive to get your system installed as soon as possible, as the rebate will continue to decrease, and then will only be available to commercial and utility-grade projects starting 2022.
California Solar Mandate Begins
In 2018, California passed legislation that required that all new homes built after 2020 must come equipped with solar panels. California has long been a leader in the nations trends regarding energy, and many eyes will be on the west coast state to see how the solar mandate impacts energy consumption, home prices, consumer confidence and many other factors. There have already been rumors of other states considering similar initiatives. As the new year unfolds, keeping an eye on the successes and/or struggles of this mandate could go a long way to determining what residential solar looks like in the new decade.
Big Things Ahead in 2020 and Beyond
Here at IES Solar, we’re proud to be a part of the growing solar industry and we pride ourselves on delivering the highest-quality service for our Texas neighbors. Whether you’re looking for commercial, residential or industrial solar, or if you just have questions about how any of these developments impact you, contact our team to get a free consultation. We’re here to help you, this new year and beyond!