In Solar Tax Credits Are Disappearing! and Solar Tax Credits Are Reappearing! I broke down the ups and downs in the amount and time limit of the availability of solar tax credits. They were to be phased out completely in 2024 but were extended to 2032 and increased from 26% back to 30%. As before, the solar tax credit will be reduced by the sum of any credit for a plug-in hybrid or electric vehicle purchased that same year the solar system was installed, operable and ready for inspection. Stagger those purchases in consecutive years to get the full benefit of these tax credits. Note that nationally it appears that the break even on your solar investment averages 7.5 years. So it doesn’t make sense from a cash perspective to install a system if the home will be owned a short time.
