How To Be Eligible For A Water Heater Solar Tax Credit
You can be eligible for a solar tax credit if you have installed approved solar water heating systems in your home. If you are still at the planning stage, don’t worry because you still have a chance to be eligible for the tax credits promised by the federal government.
What are Solar Water Heaters?
Solar water heaters basically work the same with your average electrically powered water heater. The only difference, of course, is that it relies on solar energy to heat your home’s water supply. Like common water heating systems, a solar water heater will come with a storage tank and collector. It works by storing thermal energy and utilizing it later on for heating purposes. There are, however, various ways in which solar water heaters collect thermal energy and allocate it, and that’s how they vary in terms of price and features.
Solar Tax Credit Requirements
If you wish to take advantage of the solar tax credit offered by the government, then the first thing you should take note of is the time period allotted:
Tax Credit Period Starting Date: January 1, 2006
Tax Credit Period Ending Date: December 31, 2016
It’s very critical to keep these dates in mind. If you had solar-powered systems of any sort installed prior to 2006, they are not eligible for tax credit even if they’re still functioning. Likewise, it doesn’t matter if you don’t have any solar water heaters installed right now. What matters is that you have them installed and working before 2017.
Solar Rating and Certification Corporation Approval
The next thing you should focus on is ensuring that whatever solar water heating system you have installed would meet the requirements or standards set by the SRCC. Approval from a similar entity – and one likewise endorsed by the federal government – may also be sufficient for a solar tax credit.
In any case, it’s critical that your equipment receives at least half of its energy from the sun.
Purpose
Be aware that a solar tax rebate is only offered for equipment used in heating water for “basic needs”. Simply put, if you are using your equipment to heat water for your hot tub or swimming pool – which are both luxuries rather than needs – then that won’t be considered eligible for tax credits.
What about Installation Costs For Solar Tax Credit?
If you are not using a DIY solar power kit then it’s understandable for you to be worried about the installation costs and whether or not they’re qualified to receive tax credit, too. The good news is that the answer to your question is a definite YES. So choose your installation crew wisely to ensure the safety of your home when having solar powered equipment installed. Afterward, enjoy the satisfaction and the money you’ve saved from your solar tax credit.
