What you need to know about getting your federal tax credit for your solar water heater:
- The federal tax credit is 30% of the cost of the equipment.
- All ENERGY STAR solar water heaters qualify for the federal tax credit.
- The solar water heater must be in service (in use) before December 31, 2016.
According to Energy Star Government Tax Credits:
At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.
The credit is not available for expenses for swimming pools or hot tubs.
The water must be used in the dwelling.
The system must be certified by the Solar Rating and Certification Corporation (SRCC).
If there has ever been a time to consider installing solar powered appliances and installing solar panels, the government has offered incentives via federal tax credits that make the options more attractive than any other time in our history to begin your plan of energy efficiency with a solar water heater.
It is estimated that the annual savings for the use of solar water heater is on average $220. These savings are in addition to the federal tax credit for the purchase and installation.
Look for this guide when shopping for a solar water heater:
Look for the Energy Guide