Adding solar energy to your home has financial benefits all around, from the potential savings on your monthly electricity bill to the potential added value to your home on the housing market. However, there is another aspect included in the potential return on your solar investment. There are tax benefits associated with solar energy purchases, and you can incorporate those potential perks into your estimation of how valuable solar could be for your home.
The Federal Solar Investment Tax Credit
One of the biggest tax credits available comes from the federal government. It’s known as the ITC or the Investment Tax Credit, and it’s designed to reward qualified homeowners for their solar investment. If you install a solar panel system at your home, you can potentially claim up to 26% of the solar panel system as a tax credit, reducing the upfront investment in your solar installation.5 This is a fantastic way to potentially receive financial benefit from your solar panel system.
Tennessee Sales Tax Exemption
When you’re looking at a major purchase like a solar panel system, the sales tax can represent an enormous addition in cost to your purchase. However, to make things easier on people trying to add solar energy in Tennessee, the cost of your system is completely exempt from sales tax. You can apply for the exemption upfront or claim the amount after the system is installed as a sales tax rebate. Either way, you could save at least 7% (Tennessee state sales tax rate at the time of this post) on the cost of your system.
Get Rewarded For Adding Solar In Tennessee
The benefits of solar vary by person and by location, but in Tennessee, there are plenty of incentives for adding solar panels to your home! For more information on how you can join the solar movement, contact the POWERHOME SOLAR team! We’d be happy to work with you to establish your energy goals and ensure that you understandthe full tax benefits of going solar in your home state!