Roof replacements are always unwelcome expenses, but did you know there are ways to offset the costs while locking in significant energy savings at the same time? When you go solar, you're eligible for a tax incentive up to 30% off the cost of your solar installation. If your roof is replaced at the same time, you may be able to apply that inviting incentive to the whole project!
This year is an opportune time to combine roofing and solar work together because 2019 marks the end of the 30% federal solar tax credit (ITC). But wait, why would something involving solar affect your roofing project? This is a good question and the answer is one that many people don't know about. Below we break down how this solar incentive can have a sizable impact on your roofing project's cost.
What is the ITC?
The federal solar investment tax credit is one of the biggest incentives a homeowner or business can take advantage of when looking to go solar. The current 30% rate is in place through the end of 2019, and starting in 2020, it will be reduced to 26%. In 2021, it will decrease to 22% before permanently ending for homeowners in 2022. So if you've been looking to go solar, but need work roof done in preparation for solar you can bundle them together and apply the 30% credit to your roofing project costs.
How can the tax credit be applied to roofing?
"Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home."
Since roofing would be classified as onsite preparation for solar, it's possible - depending on the job - to roll a portion of the roofing cost into your solar upgrade. So, in summary, this is applicable only if a new roof is required for the solar installation. A reputable roofing contractor and/or solar provider will be able to determine if your roof is sound enough to support the addition of a solar energy system.
Timing is everything
With the 30% solar tax credit coming to an end this year, it may be worth looking at a combined roof/solar upgrade to maximize this benefit before it's gone. Both roofing and solar schedules are already filling up for 2019, so don't wait to start your project!
If you've been needing roof work done and are interested in solar, now is the time to act! To get the most out of your roof replacement and solar investment, contact us for your free, no obligation roof evaluation.