FAQs

What’s new for the 2023 solar tax rebate?

The updated federal solar tax credit includes benefits for homeowners and businesses in the Kansas City metro area! Tax credits for solar+storage equipment expenses, as long as the energy storage devices have a capacity rating of 3KW or greater. Helio GreenTech offers battery backup solutions for your home! This includes adding storage to an existing solar system! Do you have solar already and want to add batteries to your existing solar system?

Helio GreenTech customers in 2023 are averaging a solar tax credit over $10,000 for going solar in Missouri! The average-sized rooftop solar installation in Kansas, the 30% tax credit would provide a homeowner with a savings of more than $7,500!

What are the 2023 Solar Tax Credit Eligibility Requirements?

A homeowner needs to meet the eligibility requirements to receive the Investment Tax Credit. These requirements include:

  • The solar system needs to be an original, new installation completed in 2023 or is made operational for the first time in 2023

  • The homeowner must own the system outright or have financed the parts and installation with a loan

  • The solar system cannot be leased

  • The homeowner must not be paying anyone for the energy created by the system

  • The good news is that

How to Claim the 2023 Investment Tax Credit?

To claim the Investment Tax Credit for their solar installation, the homeowner will need to complete and include IRS Form 5695 with their 2023 federal tax return. https://www.irs.gov/forms-pubs/about-form-5695

Solar Financing Options in 2023?

Helio GreenTech is a solar company, we do not offer tax or financial advice. We do provide loan and lease options to customers who want to install solar on their home or business. To qualify for the ITC, or Solar tax credit a homeowner needs to purchase their system, not lease it. This means that they will either have to pay cash for their system or finance it.

Luckily, homeowners have a wide range of financing options to choose from that can help them fit their solar installation within their budgets. Some of the best options for financing solar in 2023 include:

  • Solar Loans: Financing your solar project with a loan is a great way to go solar. When a homeowner goes solar the cost of the loan is subsidised with credits and incentives, as well as the electric bill it being reduced. Types of loans are for offered by lenders for the sole purpose of financing solar installations. At Helio GreenTech we offer loans through solar lenders such as BrightOak and Sunlight, but other loan options may be available when you apply to go solar with Helio GreenTech. We make sure that the loans we offer are consumer friendly loan options and are working to provide the best loan options for our customers.

    Solar loans are favorable because they allow the homeowner to have their solar panels installed and to start using the power they provide right away with little to no money down, and low interest loan options. Solar loans work just like any other type of loan, with a payment plan requiring the borrower to pay monthly payments over a period with interest added. By using a solar loan, the homeowner can take advantage of the ITC and any other available incentives as if they paid for them outright.

  • Cash-Out Refinance: Many solar customer with Helio GreenTech may have chosen to refinance their mortgage, and they have enough equity in their home, then a cash-out refinance can be an attractive option that will help them accomplish two goals. With this solution, the homeowner can refinance their mortgage at a lower rate and get the cash they need to pay for their solar system in full. This option may not be favorable if you have a low interest rate mortgage. There could be another option available to you that involves home equity.

  • Home Equity Line of Credit (HELOC): For Helio GreenTech solar financing options may also include a HELOC if the homeowner has plenty of equity in their home, but they don’t want to refinance, then they can tap into their home equity using a home equity line of credit to pay for their solar system. A HELOC works like a lower-interest credit card so once the solar installation is paid off, the homeowner will be able to tap into their HELOC again and again to complete other home improvement projects.

  • Solar Lease: This is not an option that is best for everyone, but for those that want to save on their electric bill, and do something impactful for the environment with no money down who may not otherwise be eligible for the tax incentives we suggest considering the solar lease option. Many lease options we offer have some similar characteristics. and may be the leading way that people go solar in 2023. There is no down payment! Just like a solar loan option. Homeowners going solar in Kansas or Missouri will not have a downpayment. If you lease solar panels, you generally pay $0 down—simply pay your solar panel leasing company to use the system. No maintenance: Typically, the solar leasing company takes responsibility for all repair and maintenance issues, which can mean your system is hands-off. Our lease options do not have a cost escalator, which helps you keep the savings you are locking in by going solar!

    When choosing between buying solar panels and leasing solar systems, it's important to base the decision on your individual needs. Whether you buy or lease your system, the sooner you get started, the sooner you can reap these benefits.

What the Inflation Reduction Act Means for Solar:

In 2022 The President Biden administration passed a bill known as the (IRA) H.R. 5376 – Inflation Reduction Act of 2022. The bill covers multiple topics, including healthcare, corporate taxes, staging at the IRS, and most importantly to Helio GreenTech and potential solar energy customers related legislation for the renewable energy sector, especially solar.

The IRA, Inflation Reduction Act of 2022 helps keep the cost of solar lower than the average electric bill it’s replacing in both Kansas and Missouri as well as most other states in the United States. The The Inflation Reduction Act will decrease consumer energy costs, increase energy security, and help reduce greenhouse gas emissions. The combined investments in the Budget Reconciliation bill will reduce an estimated 40% emissions and represent the biggest climate investment in history.

Benefits of the Inflation Reduction Act

There are a many reasons for the recent price hikes in energy costs. In early 2023 these range from leftover effects of the pandemic, to the invasion of Ukraine. Both of those events have had massive effects on the global supply chain, and will continue to have an effect for months if not years to come and will likely drive energy prices even higher.

The Inflation Reduction Act (IRA) is the most progressive action on battling the climate crisis in American history. In turn, it will help lift up workers and create fair jobs across the country. Solar has been on of the fastest growing job markets in Missouri since 2017 according to the Bureau of Labor Statistics, Solar is a market that is great of Missouri, hopefully we will see Kansas continue to grow as well as Solar has been a great industry for Missouri.

According to MOSEIA, a non-profit organization in Missouri and dedicated to help advocate for the solar industry in Missouri is an official chapter of SEIA. Solar Energy Industries Association. states that the U.S. solar industry grew 102% in 2021 year and is on track to grow another 100% in 2022. What other industry doubled its growth during one of the worst economic periods in our history?

With innovative approaches to installation, the total installed cost of installations have fallen substantially as well.

The Solar Foundation National Solar Jobs Census in 2015 found that the industry continues to exceed growth expectations, adding workers at a rate nearly 12 times faster than the overall economy and accounting for 1.2% of all jobs created in the U.S. over the past year. What the IRA does for the solar industry and the job market in Missouri and Kansas is help this trend continue.

Additionally, the Inflation Reduction Act will lower the deficit and request rich individuals and corporations pay their “fair share.” No one making under $400,000 per year will pay more in taxes.

How the Inflation Reduction Act will Save You Money

Home owners in the great states of MO and KS who wish to reduce their electric bills will benefit regardless of their ability to install solar. But for homeowners that want are eligible to go solar the Residential Clean Energy Credit will subtract 30% of the cost of installing solar heating, electricity generation, and other solar products from federal taxes. This is a rebate that was scheduled to moonlight in 2022. While this renewal is the strongest display of support the solar industry has seen in American history several of the benefits renewed where initially signed into action under the Bush administration, renewed and expended during the Obama administration, and signed into another extension through Trump. There hasn’t been a sitting president that hasn’t done something to help keep the renewable energy sector affordable for homeowners.

Act now! While the credit will be available to taxpayers for more than a decade, which means homeowners have plenty of time to consider their solar installation options. The feds have been raising interest rates and inflation has affected utility rates, so installing solar this year could be the best way to not only lock in your savings, but to significantly impact the environment as well. There may not be a more substantial way you can make such a significant impact on the environment than installing solar on your home.

From now until 2032, if you install solar equipment on your house, you are eligible to be compensated 30% of the total amount. Whether that’s $10,000 or $100,000, you will receive a nonrefundable credit to apply to your federal icon taxes.

According to the Department of Energy the following solar equipment will be covered by the new bill:

  • Solar photovoltaic (PV) panels.

  • PV cells used to power an attic fan (but not the fan itself).

  • Contractor labor for onsite preparation, assembly, or original installation.

  • Permitting fees, inspection costs, and developer fees.

  • All equipment needed to get the solar system running, including wiring, inverters, and mounting equipment.

  • Storage batteries. (You can claim the tax credit for these even if you buy and install them a year or more after you install the solar system.)

  • Sales taxes on eligible expenses.

With this bill, you will save money on electricity bills. Your savings will depend on how much electricity your household uses, the size of your solar system and the amount of sunlight it gets, and local electricity rates. Additionally, a purchased solar system will also raise the value of your house if/when you choose to sell it. Further eligibility for the tax credit may also be affected by your tax liability and Helio GreenTech does not offer financial or tax advice. We recommend you consults your tax professional for additional details on eligibility for the tax credit. However, we do provide other options for homeowners that do not qualify for the rebate through our Solar lease programs!