With a SunRun solar plan, SunRun will own and maintain the home solar power system, file for the Federal Tax Credit and immediately pass on the savings to you in the form of free installation and a lower electricity bill.

In 2008, Congress passed the the Emergency Economic Stabilization Act which included an extension of an important solar incentive for homeowners. Also known as the federal investment tax credit, the legislation extended the existing tax credit for homeowners who purchased home solar power systems for eight years until 2016. As part of this legislation, homeowners will continue to receive 30% off the cost of a home solar power system in the form of a federal tax credit. In addition, the legislation eliminated a prior cap of $2,000 for the tax credit.  

How the Federal Investment Tax Credit Works

If you decide to purchase a home solar power system that costs $45,000, you will pay $45,000 upfront and then get a $13,500 credit back when you file your personal federal income taxes the following year.  In this case, the tax credit essentially lowers the total cost of solar power to $31,500. Note that this solar incentive is a tax credit, i.e. a reduction in the amount of taxes you will pay to the federal government.  It is not like many state rebates that are cash rebates where the homeowner receives actual cash back soon after filling.

Many homeowners do not owe enough in federal taxes to be able to use all of the solar tax credit.  Others simply can't afford to pay the high cost of solar and then wait while thousands of dollars are tied up until tax time.  

By choosing a SunRun solar plan, you get the full advantage of the federal tax credit immediately, without requiring any paperwork.  Because SunRun owns and maintains the home solar power system, we manage the process of filing but give you the savings immediately.