With the 30% solar investment tax credit and the ever-increasing cost of energy, now is the time to go solar

A tax credit is a major incentive that puts money back in your pocket when you file your taxes. If you install the system by the end of the year, you should be eligible to claim the full credit.

As you will see, going solar is a long and involved process. You must allow enough time to design your system, submit permits, ship equipment, and build the system by the December 31st deadline.

If you want to take advantage of the full 30% loan, we urge you to start now so that the project does not drag on and make you miss the deadline.

This article assumes you are considering going solar and are generally familiar with the solar tax credit. If this is all new to you, check out our simple introduction to the topic:

What you need to do to meet the Solar ITC deadline?

Designing and building a solar system is not an overnight project.

Between planning, design, permitting, delivery, installation, and final inspection, it can take weeks, if not months, to complete the entire process.

From experience, December is our craziest time of year. We always get a lot of people trying to build their system before the end of the year so they can claim the credit on their next tax return.

But often they procrastinate and miss the deadline because they underestimate how long the process will take.

So if you want to hit the deadline and claim the full 30% tax credit immediately next year, we recommend you start ASAP, preferably by the end of October. Here’s our overview of how long you can expect for each step of the process:

Research and planning: 1-2 weeks

First you need to decide if solar energy is right for you. In this phase you will explore some key questions such as:

• How much does it cost to go solar?
• What is my payback period / return on investment?
• Do I need financing?
• Where can I put it, on the ground or on my roof?
• Who will install?

These are some of the most common questions people have about solar power, but it’s certainly not a complete list. You’ll likely spend a fair amount of time doing this preliminary research before you’re ready to speak with a design technician.

Everyone goes through the research phase at their own pace. But if you want to move in time to claim the full 30% tax credit, we recommend giving yourself 1-2 weeks to research. That’s enough to answer common questions, do an ROI calculation, and decide if going solar makes sense for you.

System design: 1-2 weeks

This step will put you in touch with our design techs for a guided design consultation. We will look at factors such as energy use, local climate and site considerations. With this information in mind, we’ll design a system tailored to your energy use and local solar exposure.

Once we have a design, our design tech will send you a quote. You can review this quote and request adjustments if needed.

Plan to budget at least a week for this phase, more if the design goes through revisions. It is a collaborative process and there will be some interaction between you and your design consultant.

Allow 2-4 weeks

Authorization is often the most time-consuming part of the process. Before you can build, you will need a permit approved by your local building authority.

This includes submitting a permit request with product data sheets and an attached wiring diagram. They may also require a visit from certified inspectors before moving forward.

The average time here is about 2 weeks, but it can be longer depending on how responsive your local building departments are. We have seen permits sealed in just a few days, while others are delayed in the permit process for several weeks.

Source & Shipping: 4+ weeks

We need time to pack and ship your equipment. Most components are kept in our warehouse, while less common items are ordered from the manufacturer, which extends the delivery time.

Please allow at least 4 weeks for distribution – more if we need more time to coordinate back orders with the manufacturer.

Installation: 1-2+ weeks

Depending on the complexity of the system and your level of experience with such projects, it is possible to have your system completely installed within a week.

However, it’s more likely that DIYers take a little more time to figure out the process and make sure they’re doing each step correctly. After all, your system works for 25 years. it is important that you take the time during installation to get it right.

DIY installations are usually completed within a few weekends, so we recommend budgeting at least 2 weeks for this. It might be a little faster if you hire an installer, just make sure you plan to install it when your shipment arrives so the system doesn’t collect dust in your garage.

How Much Can the Investment Tax Credit Save You?

Wondering how the tax credit will affect the cost of your system? Let’s look at some real-world examples.

The average American household uses about 900 kWh of energy each month. Let’s see what it would cost to fully offset that use and how much you could get back from the 30% tax credit.

This chart is divided into on-grid and off-grid systems with the option of installing it yourself or hiring a contractor to do it for you at a cost of $1/watt. In all cases, we have assumed $1,000 for shipping and clearance fees.

Ready to go Solar?

If you want to claim the full 30% text loan before it drops in value at the end of the year, now is the time to start your project.

Fast track your solar project by requesting a consultation with one of our experienced designers. We will assess your needs and connect you with a representative who can design your system and move your project forward.

If you want to get started ASAP, you can always call 1-800-472-1142.