Solar Tax Credits Extended to 2023 as Pandemic Relief

 

solar panel installation

Needless to say, there are tremendous benefits of using solar-based electrical appliances, such as reduced carbon footprint and preservation of energy. However, solar products can be expensive and usually keeps end-users or contractors from purchasing. 

According to recent news from Solar Reviews, Congress increased the tax credit offered on December 21, 2020. The federal solar tax credit has passed a two-year extension as part of the COVID-19 relief package.

Federal tax credit chart

Thanks to the COVID-19 relief package, the 26% federal tax credit will extend to 2023. After January 1, 2023, the tax credit will step down to 22%, and the commercial installations will decrease to 10%. In general, the solar industry has grown by more than 10,000% since implementing the federal solar tax credit in 2006.

SOLTECH lighting designer tells you why solar always wins


There is no doubt that solar lighting fixtures help you save more money long term. To verify, the SOLTECH lighting designer compared the total costs of solar lights and on-grid LED lights and was amazed by the results!

compare solar light and on-grid light

A regular parking lot as an example: 

In a 391×110 ft parking lot, we compared 14 on-grid led fixtures and 20 SUNLIKE 30W solar fixtures. The total cost for the solar fixtures was $13,840, with cumulative savings of $17,270.52. When we used the on-grid led fixtures, the total cost was $31,110.52, almost double the solar fixtures’ expenses. 

Overall, though on-grid lights are cheaper and can reach the same luminance level with fewer fixtures, their wiring and trenching cost make them way more expensive than solar lights. 

Case study: Ocala Medical Center
Ocala case study

The Ocala project is another excellent example of this calculation.

In early 2020, SOLTECH worked with a developer on constructing a large government facility in Florida. The developer requested an on-grid and solar solution for the site, but after the cost-effective comparison, moved forward with the SUNLIKE 30W solar fixture and saved up 10% in costs. 

Conclusion


This project demonstrates how solar lighting fixtures can be a better solution than on-grid lights. The solar industry is continuing to grow, and now is the best time for consumers to go solar.

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