Solar Tax Credit Extended!

Solar Tax Credit Extended!

A year of life in a global pandemic has impacted us all in different ways. In many of our lives, it has been hard to find a silver lining to the clouds. Clouds being less than ideal for the solar industry, we have weathered the storm as a business, and continue to push forward toward more clean energy. In 2020, we installed 1.6 MW of solar over 4,500 solar panels, thanks to our excellent clients and dedicated staff. So far in 2021, we’ve had a record number of homeowners sign up to go solar!

At the end of the infamously difficult 2020, we took a moment to reflect and be thankful that our solar business remained stable and grew, despite the many challenges. In that moment, the solar industry, and by extension, all of our clients, received a gift.

On December 21st, 2020, the U.S. Congress passed a two-year extension of the Solar Investment Tax Credit (ITC).

This is a massive benefit for folks looking to install solar, as it dramatically reduces the cost of their project. With this extension, solar customers are eligible for a federal tax credit equal to 26% of the total purchase price of their solar system. That includes the cost of materials and installation for everything below:

  • Solar panels, microinverters, and racking (everything that goes on your roof)
  • Electrical upgrades that are necessary for solar installation such as installing a new electrical panel
  • Battery backup systems
  • Solar monitoring devices (including Enphase, eGauge, and SENSE)

In short, this means there is no reason to wait to go solar! The 26% solar ITC now extends to all systems installed before the end of 2022. Then, through the end of 2023, the credit drops to 22%. See this graphic from Wood Mackenzie.


Additionally, the bill includes billions of research and development dollars for clean energy, which is great news for the future of solar. Solterra Solar has always kept an eye on new and improving technologies that can add value and convenience to their solar systems. With more investment in this space, solar, batteries, and energy efficiency upgrades are only going to get better!

More broadly, legislation like this enables greater growth in the renewable energy industry, which means more jobs in solar, wind, and beyond. Solar is already one of the biggest job creators and shows no signs of slowing down with continued incentives. Right here at home in Seattle, our team is growing, and we are bringing more clients into our Solterra Solar family every day. Join us in the clean energy revolution!

To learn more about the impacts of the bill on the energy industry, check out this episode of The Energy Gang Podcast.

Author Bio:


Isaac (he/him) is a Solar Design Consultant at Solterra Solar. He is passionate about solar energy, electric vehicles, and how they can work together to move us toward a sustainable energy system. When he’s not driving his electric car to solar consultations, he cruises the streets of Seattle on his electric motorbike or finds trails to ride on his mountain bike. He also coaches high school ultimate frisbee and enjoys vegetarian burgers and baking sweet treats to share with office mates! 

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