Edward Carrico, left, and Spencer Kearney, with Solar Service in Niles, install solar panels on a home in Lake Zurich in March 2017. (John Konstantaras/for the Chicago Tribune)
Wondering how you’re going to pay for a $25,000 rooftop solar system? Help is on the way.
Two historic climate laws — one state, one federal — offer incentives that cut the cost for residential solar by more than half, starting this week.
The Inflation Reduction Act, signed by President Joe Biden last month, includes a tax credit equal to 30% of the cost of installing home solar, and the Illinois Climate and Equitable Jobs Act offers an incentive expected to save rooftop solar customers roughly 40% of their costs, starting Thursday.
That would bring the cost of a $25,000 system down to approximately $7,500.
“It’s a really big deal,” said Vito Greco, director of solar programs at the Chicago nonprofit Elevate, which supports clean and affordable energy. “If you’re in Illinois, this is such a great time to get solar.”
Those who don’t pay enough taxes to claim the 30% federal tax credit can now get the full amount anyway, via a check from the government, Greco said.
And residents of low and moderate-income communities can benefit from additional federal tax credits of 10% to 20% of the cost of their solar projects, with some details still being worked out.
The federal tax incentive for people with average or high incomes is straightforward: a credit that reduces what you owe in taxes, not a deduction, so you would get $7,500 back on a $25,000 system.
The federal solar tax credit — increased and extended 10 years under the Inflation Reduction Act — is retroactive through the beginning of 2022.
Read more here.
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