Special financing programs exist to encourage investment in “green” technologies. For example, 24 hour approval for solar system purchases – without the hassles of going through a complicated analysis of your home’s equity. These loans are designed to make it easy and fast for you to obtain the funds you need and still allow you to enjoy the tax deductions available on home equity loans.
Payment options include making no payments for 2 years, payments adjusted to equal what you are paying PG&E today, or accelerated payments designed to quickly pay off the loan. At the end of the loan period, you have not only paid out less cash for your energy needs, you now own an asset that significantly adds to the value of your home, paid for with PG&E money.
Solar Investment Tax Credit Schedule
- 2020: tax credit reduces to 26% for residential and commercial customers
- 2021: tax credit reduces to 22% for residential and commercial customers
- 2022 and beyond: tax credit reduces to 10% for commercial customers. There will be no federal tax credit for residential solar+storage systems owned by homeowners for 2022 and beyond
- “Commence construction” language: the IRS issued a clarification on ITC eligibility to allow projects that start the construction process before the end of the year to qualify for ITC that year