Installing Solar at End of Year Could Maximize Financial Benefits

As the year winds down, many homeowners and businesses are looking for ways to maximize their savings and take advantage of last-minute opportunities to cut costs before the new year begins. One of the most effective ways to do this is by installing a solar energy system. By going solar now, you can capitalize on a variety of financial benefits that are particularly advantageous at the end of the year, thanks to solar incentives, tax credits, and other savings opportunities.

In this article, we’ll explore why the last few months of the year present the best time to invest in solar energy, including the opportunity to leverage government incentives and enjoy lower interest rates on solar financing, making solar even more affordable and profitable.

Maximizing Solar Tax Credits

One of the biggest financial incentives for homeowners and businesses installing solar systems is the Federal Solar Investment Tax Credit (ITC). This credit allows you to deduct a significant percentage of the cost of your solar installation from your federal taxes. In 2024, the ITC offers a 30% tax credit for solar systems installed by the end of the year, which is a major financial boost. This 30% tax credit now includes battery backup systems as well!

However, this credit is time-sensitive: to take full advantage of it, your solar system must be “placed in service” by December 31st of this year. Waiting until next year may expose you to possible reductions in the percentage offered by the solar tax credit. Although there is no official confirmation yet, the current election environment and future changes in policy or legislation could reduce the credit, which is why acting now ensures you lock in the highest savings possible.

In addition to the solar tax credit, there may be other state and local incentives that also operate on a calendar-year basis. Many states and municipalities offer their own solar rebates, credits, or grant programs, some of which may expire or change at the end of the year. It’s essential to check what additional incentives are available in your area and move quickly to ensure eligibility before the deadline passes.

To see what solar and battery incentives you qualify for, use our Solar and Battery Incentives Guide.

Accelerated Depreciation for Businesses

If you’re a business owner considering solar, installing your system before the year ends also comes with added tax advantages through accelerated depreciation. The Modified Accelerated Cost Recovery System (MACRS) allows businesses to deduct a large portion of their solar investment over the first five years, with an even greater portion in the first year.

Installing solar now ensures that you can begin taking advantage of these deductions in the current tax year, reducing your taxable income and providing immediate financial benefits. This can have a significant impact on your bottom line, especially when combined with the solar tax credit. For businesses that are closing out their fiscal year, this is a great opportunity to reduce tax liability and reinvest those savings into future growth.

Learn more about MACRS depreciation and how it could benefit your business by installing solar. Contact us today.

Lower Interest Rates Make Solar More Affordable

Another compelling reason to install solar toward the end of the year is that interest rates have recently dropped, making solar installations more affordable and a better long-term investment. Solar financing, whether through loans or other financial products, is often tied to interest rates, and a decrease in these rates lowers the overall cost of financing your system.

In recent months, the Federal Reserve has indicated an easing of interest rates, and some financing companies are offering special low-interest solar loans. This means that homeowners can lock in low monthly payments, making the switch to solar more accessible and affordable than it has been in previous years. With lower interest rates, you’ll pay less in interest over time, which increases the overall return on your solar investment.

For example, if you’re financing your solar system with a 10- to 20-year loan, even a small reduction in interest rates can result in thousands of dollars saved over the life of the loan. Lower interest rates also mean that the payback period—the time it takes for your energy savings to cover the cost of your solar system—can be significantly shortened. This improves the long-term financial benefits of going solar, allowing you to reap savings sooner while making the most of current economic conditions.

With interest rates at record lows and energy prices climbing, we’re at a unique point in time where the economics of solar energy are especially attractive. On one hand, low interest rates make financing a solar installation cheaper than ever before. On the other, rising energy prices make solar savings even more valuable.

This combination of factors makes now the perfect time to install solar panels. By financing your system at a low interest rate, you’ll minimize your overall costs. And by switching from traditional energy to solar power, you’ll lock in savings that will grow as energy prices continue to rise.

Learn more about low-interest solar rates. Contact us today! We work with specialized solar lenders who offer the most competitive rates possible.

Solar’s Tax Benefits and Immediate Energy Savings

Another major advantage of installing solar before the year ends is the opportunity to claim tax benefits in the upcoming tax season. By completing your solar installation before December 31st, you can claim the federal solar tax credit on this year’s tax return, effectively reducing your tax liability next year. This is a financial boost you can look forward to in the short term, helping to offset the initial cost of your solar system.

Furthermore, once your solar system is installed, you’ll begin to see immediate reductions in your monthly energy bills. Even though the installation happens late in the year, your system will still produce energy during the winter months, helping to lower your utility costs when energy consumption tends to spike due to heating needs. This means you’ll start saving money on energy bills right away, and those savings will continue to accumulate throughout the lifetime of your system.

Protecting Against Rising Energy Costs

As energy prices continue to rise across the country, installing solar now offers long-term protection against future rate hikes. Utility companies often raise their rates during the winter months, and inflation has driven energy prices even higher over the past few years. Solar energy allows you to lock in a predictable, fixed rate for your electricity costs, providing financial stability in the face of fluctuating utility rates.

By producing your own energy, you’ll reduce your reliance on the grid and shield yourself from these rising costs. This is especially beneficial as energy inflation continues to outpace general inflation. With a solar system installed, you can take control of your energy expenses and ensure that your monthly bills remain low, regardless of future price increases by your utility company.

Beat the Rush: Secure Your Spot in the Solar Installation Queue

Another key benefit to installing solar before the year ends is getting ahead of the early-year rush. Historically, many homeowners and businesses wait until the new year to begin solar installations, resulting in a surge of demand for solar providers in the first few months of the year. This surge can lead to longer wait times for consultations, system design, permitting, and actual installation.

By acting now, you can secure your spot in the installation queue before the rush hits. Solar companies tend to get very busy once the new year begins, especially as customers rush to take advantage of solar incentives or respond to rising energy prices. By getting ahead of this rush, you ensure a more streamlined and timely installation process, avoiding the potential delays caused by increased demand.

Additionally, many solar installers have more flexibility in their schedules toward the end of the year, meaning you can often schedule your installation sooner and with more convenience. This ensures that your system is up and running sooner, allowing you to start saving on your energy bills without having to compete with the post-holiday influx of installations.

Plus, when spring and summer roll around, your solar panels will be ready to capture the sun. Otherwise, if you wait to install solar next year, your solar panels might not be installed until mid- or late-peak solar season.

By locking in your installation date now, you can also ensure your system is fully operational by the time the higher energy demands of spring and summer arrive, maximizing your energy production and savings.

Get on the install schedule early! Contact us today to get your free solar analysis and secure your install date. That way, you will skip the New Year crowd of installs and have your solar ready in time for peak solar in spring and summer!

Install Solar Before the Year Ends for Maximum Financial Benefits

If you’ve been considering solar, the end of the year is the perfect time to make the switch. By installing your system before the end of the year, you can take full advantage of the federal solar tax credit, state and local incentives, lower interest rates, and immediate energy savings. You can also get on the install schedule early, be installed in time for peak solar season, and protect yourself from next year’s utility rate hikes. These financial benefits are especially powerful when combined, resulting in substantial cost savings both now and in the years to come.

Don’t wait until next year to start saving. Contact us today for a free consultation and find out how much you can save by going solar before the year ends. Take control of your energy future and make the most of the financial incentives available now!