Solar Tax Credits



The Solar Investment Tax Credit (ITC) was created by the Energy Policy Act of 2005; it set a tax credit of 30% of solar system costs for homeowners and commercial business owners who installed solar panels. The tax credit (not a write off, an actual credit to pay tax liability) remained at 30% until the end of 2019, at which point it dropped to 26%. The credit was scheduled to decrease again at the start of 2021 to 22%, but the federal spending package and COVID-19 virus relief spending bill passed in the final days of 2020 has extended the ITC to remain at 26% for 2021. It will stay at 26% through 2022, then the benefit will drop to 22% in 2023; after that it will go away completely for residential systems.


Here’s the breakdown of how the federal solar tax credit extension will works:

What is my first step?

To take advantage of this Federal Investment Tax Credit and to receive the full 26%, make sure your solar system is installed, operating, and approved well before Dec. 31, 2021 to apply the credit to your 2021 tax liability. Our team at HES Solar is ready and knowledgeable to help guide you through the process to ensure your system is up and running before the ITC deadline so that you get your maximum tax credit benefit

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HES Solar places safety as our highest priority, and that extends from our employees to our customers, to anyone else we may potentially be in contact with through the course of business. Along with the safety procedures we adhere to in the normal course of our work and projects, we have instituted several safety protocols for all of our employees during these times of vigilant public health precautions due to COVID-19. 

Our employees are given temperature checks each time they enter the office, and office visits are only allowed when necessary. 

We’ve instituted remote working for all of our employees who are able to perform their job duties at home. Meetings are done through virtual meeting rooms. 

Field employees maintain a six-foot distance between themselves and fellow employees, customers, vendors, and all others unless unavoidable. 

Masks are required whenever interacting with fellow employees, customers, or the public and whenever social distancing is not possible. 

To ensure these procedures can be met, employees have been provided with face masks or face coverings, eye protection, gloves (as necessary), and foot coverings (as necessary). 

To help ensure frequent sanitizing, employees have been provided sanitizers in the form of gel, liquid, and wipes, antibacterial soap, and paper products for cleaning such as tissues and paper towels.