Ever since the 2016 Federal Budget included considerable tax breaks for anyone who completes a solar energy installation the industry has enjoyed successive years of impressive growth. Extended to run through to 2021 the incentives on offer are due to a gradual slowdown in the next three years. For residential users and business installations interested in taking advantage of these incentives, it has never been more important to act sooner rather than later. While there are expected to be continued limited tax breaks after 2021, it is unlikely that such a generous scheme will be offered again in the near future. Here is a lowdown on the essentials to understand should you be considering solar and how much you can still save.
The Specifics
Those who install in 2019 can still claim a 30% tax credit on the complete cost of their solar power system. This applies to both residential and commercial users. Should they not meet the criteria to cover the cost in full over one financial year, this saving can be rolled over into the next.
Should you opt to wait until 2020 before installing a residential or commercial solar energy system, the tax credit falls to 26% of the cost of installation. In 2021 that figure falls further to 22% of the cost. Again this applies to residential and commercial users.
For most people even choosing to delay until 2021 those savings on offer remain very appealing and will shave a considerable amount from the total cost price of any installation.
However, from 2022 onwards only commercial installations may apply for a 10% tax credit. Residential installations are out of the picture, meaning that home occupiers interested in solar but delaying their decision really need to start weighing up their options now.
One important caveat is the rules have been changed regarding whether or not an installed solar power system was operational. Previously the tax break only applied if it were, that is no longer the case. Even if you install a solar project and do not connect it, you can still claim the relevant dated figure as late as December 31, 2023.
Anyone looking to claim for saving on their solar power installation simply needs to file it in their annual tax report.
Essential Advice You Must Understand
One much-overlooked fact that can add an additional 10% saving to your tax credit is simply being able to prove that you have looked around for ‘multiple’ quotes. The exact meaning of multiple here is commonly understood to be three or more. Note that this incentive only applies to homeowners and is intended to avoid the market being monopolized by the larger national companies. For this reason alone it is always worth looking to use our services ahead of those, as not only are our prices superior but our installation quality and variety of panel options are much greater. In our experience that additional 10% can be on around $7000+ for our previous customers.
Smaller operations such as ourselves will generally be around $5000 cheaper compared to the larger companies. Not only do you receive truly personalized service for yourself and your property’s solar installation. We also are able to offer lower costs on better standards of solar panels and equipment suitable for your project.
We always aim to find the best solution and deal for our customers – and have a fantastic track record of doing so.
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