The Clock Is Ticking on Solar Tax Credits
The clock is ticking – it’s always ticking, because that’s what clocks do. But in this case, the end of this calendar year is worth paying extra attention to if you’re in the business of selling solar power systems to homeowners and small businesses.
At the end of 2019, the US federal solar investment tax credit, the tax credit that everyone interested in solar power has taken for granted as an incentive to go solar for the last several years, is set to decrease significantly.
Beginning in 2020, the solar tax credit for homeowners will drop from 30% to 26%. Starting in 2022, it will go away completely. Businesses will still benefit from a 10% federal tax credit for going solar, but individuals who are hoping to go solar with as many financial incentives to do so, will need to act fast.
Systems will need to be paid for and installed by the end of 2019 in order to be eligible for the tax credit. If you are a solar installer, your sales team needs to be leveraging this simple fact in every conversation they have with every lead and prospect going forward. Here’s why.
Why 2019 Might Be the Pivotal Year for Your Business
Because 2019 is the last year for homeowners to reap the full benefits of the federal solar tax credit (in 2020 it drops to 26% and in 2021 it goes down to 22% before disappearing altogether), this is the year to drive in as much business as you possibly can.
Other incentives (especially if you happen to be operating in California) will still be in place following the end of the year, and the need to go solar will continue to be felt as energy costs continue to go up and the effects of climate change put more pressure on everyone.
However, a major financial incentive, especially one that has made solar affordable for so many early adopters and those that have jumped on the solar bandwagon during the boom years, is going away and the window in time to leverage it is rapidly closing.
Your marketing efforts, even your content and social media marketing efforts, should be focused on this looming deadline as much as possible. Your sales teams, it cannot be understated, need to be completely focused on this as an incentive. Price may not be the biggest driver to install solar power for some of your prospects, but it is a factor for nearly everyone looking to put panels on their roof.
Solar Benefits Beyond Just the Tax Incentives
Basically stated, the federal government has been underwriting a rather significant chunk of the cost of going solar during the last several years. This incentive has been lowering the bar to entry for many homeowners, for a very long time. It only drops by four percent in the next year, so there’s no need to panic.
As mentioned above, there are still plenty of other selling points for residential solar and other incentives that help with some of the cost. But, sleeping on this rather major change that will affect your business, will certainly cost you in the long run.
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