Renewable, green energy has become a hot button topic in recent years. Electric cars. Wind farms. Geothermal power. Even semi-trucks are going electric in a bid to reduce the transportation industry’s carbon footprint. Solar panels for homes, including real estate in Lake Havasu, have been making a strong showing lately. Did you know that you may be eligible for tax credits if you install solar paneling on your real estate in Lake Havasu? Not only does this reduce your utility bills each month, but it also makes your home more attractive when you put it on the Havasu real estate market. Definitely something you need to consider when making any home improvements in the future.
Solar Panels for Your Havasu Home
Lease or Own?
Many companies offer you a choice of leasing or owning solar panels. Owning typically costs more out-of-pocket than leasing. However, to receive tax credits, you need to actually own the panels. If you do lease, let the buyer know about any requirements and fees involved in taking over the lease once they purchase your real estate in Lake Havasu. Also, request that the company you purchase your panels from put in writing who actually owns the panels to avoid confusion in the future.
Cost vs Savings
On average, an Arizona homeowner spends around $16,000 on average to install solar panels on their home. Of course, that depends on how many panels you need to accommodate your household usage. That sounds pricey when you first hear that. But that’s also before you factor in the tax credits you receive. Then, consider the reduction in your electric bill (anywhere between 70% and 100%). That could net you a savings of over $1000 in utility bills each year on average. Over time, it pays for itself.
Tax Credits Available
If you install solar panels on your real estate in Lake Havasu in 2020, the IRS allows you to deduct as much as 26% of installation costs from your taxes through the Investment Tax Credit (ITC). In 2021, that deduction reduces to 22%. Arizona offers residents a 25% tax reimbursement on the cost of your panels up to $1000 through the Residential Arizona Solar Tax Credit. That’s only available for the year you install the panels.
Always talk to your tax preparer about these credits when you file your taxes. They know the ins and outs of tax credits much better than I do.
Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
Search homes at: www.TheHavasuHome.com