Solar Investment Tax Credit (ITC)

The growth of the solar panel industry has benefited greatly from the Solar Investment Investment Tax Credit in the United States.  Enacted in 2006, the ITC has helped the solar industry grow by more than 10,000%.  At it’s highest point, the ITC offered a 30% tax credit for homeowners. As it progresses through the years, the percentage of tax credit will slowly diminish until homeowners will will not have this great benefit available to them. Commercial rebates will drop to a permanent 10%.

ITC - How ITC Works

Why Your Timing Matters to the Solar System Cost

  • 2016 – 2019: The solar investment tax credit remained at 30% of the cost of the solar system from their taxes
  • 2020: New residential and commercial solar systems can deduct 26% of the cost of the solar system form their taxes
  • 2021: New residential and commercial solar systems can deduct 22% of the cost of the solar system from their taxes
  • 2022 and forward: Owners of new commercial solar energy systems can deduct 10% of the cost of the solar system from their taxes.  Notice that there is NO federal tax credit for new residential solar energy systems

How Does the Solar Investment Tax Credit Work?

The Investment Tax Credit (ITC) is a federal tax credit claimed against the tax liability of residential (under Section 25D) and commercial and utility (under Section 48) investors in solar energy property. The Section 25D residential ITC allows the homeowner to apply the credit to his or her personal income taxes. This credit is used when homeowners purchase solar power systems and have them installed on their homes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit.

A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. Both the residential and commercial ITC are equal to a percent of the basis that is invested in eligible solar property which has begun construction through 2020. The ITC then steps down according to the following schedule:

  • 26 percent for projects that begin construction in 2020
  • 22 percent for projects that begin construction in 2021
  • After 2021, the residential credit drops to zero while the commercial credit drops to a permanent 10 percent

The solar panel cost is lower than ever before, but the Solar Investment Tax Credits is going away.  Talk to us for a Free No Obligation Quote today.

Free Solar Quote

The History of the Solar Investment Tax Credit

The first version of the Commercial Investment Tax Credit (ITC) was passed by Congress in 1978.  It was an early attempt to make solar energy affordable, before technology was able to make it affordable to all. This version allowed for 30% of the cost of the equipment, but had a cap on the total amount.

A resurgence for solar power occurred again in 2005, and the Solar Investment Tax Credit (ITC) was established by the Energy Policy Act of 2005. This version added residential into the equation and had an expiration at the end of 2007.  Due to its popularity and success in helping move the United States’ into a renewable energy economy, its expiration date was been extended by the Emergency Economic Stabilization Act of 2008. Now, the solar investment tax credit is available to homeowners through 2021.

American Sentry Solar is here to help with all of your questions about the Solar Investment Tax Credit.  Schedule a free appoint with us today.

5 Star ReviewAn excellent value with excellent customer service Tim Cammer, Jonathan D’Antonio, and the installation crew went above and beyond what was necessary to give us an excellent product at an exceptional value, with excellent customer service. The product is already paying for itself with no net loss to our family’s budget. They were willing to travel an exceptionally long distance to our home in Yoakum with no complaints. Jonathan D’Antonio completed difficult negotiations with the City of Yoakum so that the city fees were minimal. The installation crews installed the panels safely with no hiccups, and Jonathan D’Antonio (the operations manager) personally inspected the installation before we turned it on. I highly recommend this company.
Hope Johnson, Solar Reviews
5 Star ReviewGreat We met with the of the representatives and decided to move forward with installing the solar system. Due to Covid-19 it took a good while before the install was done. I can honestly say me and my husband are happy we decided to go solar. The technicians were very nice, very fast and worked very efficiently to get the work done. We are looking forward to saving money on the cost of our electricity bill. Thank you for you services American Sentry Solar. Mr. and Mrs. Richo
Mr. and Mrs. Richo, Solar Reviews
5 Star ReviewEasy and Professional We had been planning to get solar for years but never found a company we felt comfortable with until American Sentry Solar. They answered all our questions and made us feel comfortable. They made it easy for us, and when the time came (mid-COVID) they were fast, safe and professional. We highly recommend them.
Vaughan Family, Solar Reviews

5 Star ReviewGreat service and excellent communication

This company was referred to me by some coworkers who had solar panels installed. We set up the appointment and Dustin explained every little detail. The company was easy to deal with and took care of setting everything up including the rebate paperwork. They made it simple and Stress free. Great company and I would highly recommend them!
Kus family, Solar Reviews

5 Star ReviewGreat start

Installation of panels was quick, clean, and professional. They anticipated what townships inspector would require with time saving pictures. I am amazed at how efficient solar panels are. Totally pleased with system so far. Enphase app is excellent and easy way to visualize benefits of this solar system. Waiting for electric company to install new meter so we can realize energy credits.

5 Star ReviewGreat company, kept informed throughout process

It was a wonderful experience to work with American sentry Solar. That being said I told them that I wanted to own my system and reap all the benefits of owning it and that included rebates and that I can upgrade to add more down the road (I got 14 panels 4.62K). The guys that came out to do the installation were very nice and friendly, in fact I surprised them when I showed up on the roof to see them working on installing the racking and solar panels. After install and inspection was done the Corona virus kept me from getting my new Net meter from BGE as no one was allowed to go into houses for now (my meter is in my basement) but American Sentry Solar sent out a tech to put the system on line in a way that they could produce power but no to allow net metering yet and use only as needed that I used during the day. Then they sent out my rebate paperwork fully filled out and told me were to sign and even the envelope to put it in to mail it out. They kept me up to date with install and delays with BGE, until BGE postponed indefinitely for now. I would rate them 11 out of 10 stars thanks again now just waiting on BGE for net meter to be installed. Thank you for a wonderful experience Brian Minnerly
Minnerly, Solar Reviews
5 Star Solar ReviewEXCELLENT I am extremely happy I chose American Sentry Solar. A neighbor recommended them and after meeting with Will, I honestly never met with any other company. I had been told the panels would be installed and operational by the end of April. The estimated date was more than a month AFTER they were installed. Having the panels installed and operational during quarantine certainly helped my pocketbook!
Butterflylsf, Solar Reviews

5 Star Solar ReviewSmooth process, couldn’t be nicer

We had worked with American Sentry Solar’s parent company, American Design and Build, to replace windows at our previous residence and had a good overall experience with that process. So naturally when we moved to Bel Air, MD and were considering a solar project, we reached out to American Sentry. We were not disappointed. The initial consultation was very informative and honestly very low key, considering the size of the project. While there was a sense conveyed that sooner would be better to get the project underway, it was far from a high pressure sales call. The installation went as planned too. The crews showed up at our home at around 8:30am, and before lunchtime they had finished, cleaned up and headed out. It was a very streamlined process. But they also took time when they were finished to discuss the work they’d done with my wife and me, answered questions that we had and discussed next steps before they left. True professionals, and extremely nice people. Throughout the entire process, American Sentry Solar was available to answer our questions and guide us through the process, and they took additional steps to insure our inspection went as planned (though understandably slower than usual) even with Maryland’s COVID-19 protocols going into effect at the same time. Once again we are very pleased with our experience with American Sentry Solar and American Design and Build. The next time we have a major home improvement project, you can be sure we’ll be contacting them again.
A. Frey, Solar Reviews

5 Star Solar ReviewInstallation review

I like to commend all the employees that were at our house over January and February from Mr. Hopp to the structural engineer that inspected our roof and attic. I worked in the union electrical constrution trade for over 30 years and was impressed with the electricians that were at our home and also the roofers that did the exterior install. I would certainly recommend your company to any one who might need info. Thank you very much. Frank Clymer
Frank Clymer, Solar Reviews

5 Star Solar ReviewGreat experience

I highly recommend American Sentry Solar! What a bunch of great guys who are professional, friendly, and accurate. From beginning to end, this was a great experience.

5 Star Solar ReviewGreat experience, professional and made in Texas!!

From Mike, my sales person, to the installers and everyone I talked with on the phone they were all honest and upfront with me about the product, process and installation. They handled everything including my HOA and CPS electric. Installers even finished about an hour early – less than 3 hrs total and totally cleaned up after themselves – awesome, friendly team. I loved that the panels are actually made in Texas – I like supporting my Texas people! I have been very satisfied with the 16 panel solar performance. I moved in my house 6 months ago and my highest electric bill was Nov at $47.33/415 KwH (just me here) – this month (Feb) it was 0 KwH used-solar produced 443KwH! The panels look great on the roof too. I totally recommend American Sentry for your Solar system (ha ha – ‘solar system’) – don’t hesitate!
Karen S, Solar Reviews

So far so good5 Star Solar Review

As of the writing of this review, the installation has been completed. All that’s left is the final inspection. So far there were no hassles and every step of the process was thoroughly explained and then completed in a timely manner. Everything was so easy!! They provided all the information my HOA requested. The customer service is remarkable. I would recommend this company to anybody!!
Sebastian, Solar Reviews

American Sentry Solar was amazing to work with5 Star Solar Review

They did all the leg and paperwork for us. Took care of all the permits and working with my electric company. They were always quick to respond to any question and great to work around my schedule. If I had to go back and do it over again I would still chose American Sentry Solar.
Jennifer, Solar Reviews

I waited to write this review5 Star Solar Review

I waited to write this review because I was sure that something would go wrong. I thought that there would be a hassle between pulling permits, actually doing the work, getting an inspection, getting rebates, and then finally receiving our first energy bill. I must say I was wrong. Everything was so easy!! I didn’t have to deal with my HOA (the company did it all for me), setting up an appointment for installation was easy, we passed our inspection, and our savings on our energy bill were immediate. We went from $150 to $50 energy bill for the last two months (and it was pretty cloudy and rainy those months). I’m still waiting for a hiccup in the whole process and am amazed by how smooth it went! I would recommend this company to anybody!

An excellent experience with an excellent company5 Star Solar Review

American entry Solar is an excellent company to work with and provides excellent service and an excellent product. Everyone was polite, friendly, and professional. The sales staff was knowledgeable and not pushy. Installation was quick, taking two days. Installation would have only been one day had weather not been a factor. And they cleaned up after themselves at the end of each day, leaving nothing laying around in my yard after either day. Had it not been for the fact that I could see the progress on top of my roof, I wouldn’t had known they had been there when I got home from work. I was kept informed of what was going on, every step of the way and they handled all of the paper work for permits, HOA, and rebates. The panels themselves have been a great investment outperforming our expectations. I couldn’t be happier with the service, the people, or the product.
5 Star Solar ReviewVery good company to deal with. The installers were polite and very professional. They had solar installed in no time. I would recommend this company the inspector that came out said that there was never a problem with this company.
Sandra Johnson, Google
5 Star Solar ReviewOutstanding job by the team at American Sentry Solar. Best price. Quality workmovement job and definitely will again. Top notch organization.
Robert Shrader, Google
5 Star ReviewAn excellent value with excellent customer service Tim Cammer, Jonathan D’Antonio, and the installation crew went above and beyond what was necessary to give us an excellent product at an exceptional value, with excellent customer service. The product is already paying for itself with no net loss to our family’s budget. They were willing to travel an exceptionally long distance to our home in Yoakum with no complaints. Jonathan D’Antonio completed difficult negotiations with the City of Yoakum so that the city fees were minimal. The installation crews installed the panels safely with no hiccups, and Jonathan D’Antonio (the operations manager) personally inspected the installation before we turned it on. I highly recommend this company.
Hope Johnson, Solar Reviews
5 Star ReviewGreat We met with the of the representatives and decided to move forward with installing the solar system. Due to Covid-19 it took a good while before the install was done. I can honestly say me and my husband are happy we decided to go solar. The technicians were very nice, very fast and worked very efficiently to get the work done. We are looking forward to saving money on the cost of our electricity bill. Thank you for you services American Sentry Solar. Mr. and Mrs. Richo
Mr. and Mrs. Richo, Solar Reviews
5 Star ReviewEasy and Professional We had been planning to get solar for years but never found a company we felt comfortable with until American Sentry Solar. They answered all our questions and made us feel comfortable. They made it easy for us, and when the time came (mid-COVID) they were fast, safe and professional. We highly recommend them.
Vaughan Family, Solar Reviews

5 Star ReviewGreat service and excellent communication

This company was referred to me by some coworkers who had solar panels installed. We set up the appointment and Dustin explained every little detail. The company was easy to deal with and took care of setting everything up including the rebate paperwork. They made it simple and Stress free. Great company and I would highly recommend them!
Kus family, Solar Reviews

5 Star ReviewGreat start

Installation of panels was quick, clean, and professional. They anticipated what townships inspector would require with time saving pictures. I am amazed at how efficient solar panels are. Totally pleased with system so far. Enphase app is excellent and easy way to visualize benefits of this solar system. Waiting for electric company to install new meter so we can realize energy credits.

5 Star ReviewGreat company, kept informed throughout process

It was a wonderful experience to work with American sentry Solar. That being said I told them that I wanted to own my system and reap all the benefits of owning it and that included rebates and that I can upgrade to add more down the road (I got 14 panels 4.62K). The guys that came out to do the installation were very nice and friendly, in fact I surprised them when I showed up on the roof to see them working on installing the racking and solar panels. After install and inspection was done the Corona virus kept me from getting my new Net meter from BGE as no one was allowed to go into houses for now (my meter is in my basement) but American Sentry Solar sent out a tech to put the system on line in a way that they could produce power but no to allow net metering yet and use only as needed that I used during the day. Then they sent out my rebate paperwork fully filled out and told me were to sign and even the envelope to put it in to mail it out. They kept me up to date with install and delays with BGE, until BGE postponed indefinitely for now. I would rate them 11 out of 10 stars thanks again now just waiting on BGE for net meter to be installed. Thank you for a wonderful experience Brian Minnerly
Minnerly, Solar Reviews
5 Star Solar ReviewEXCELLENT I am extremely happy I chose American Sentry Solar. A neighbor recommended them and after meeting with Will, I honestly never met with any other company. I had been told the panels would be installed and operational by the end of April. The estimated date was more than a month AFTER they were installed. Having the panels installed and operational during quarantine certainly helped my pocketbook!
Butterflylsf, Solar Reviews

5 Star Solar ReviewSmooth process, couldn’t be nicer

We had worked with American Sentry Solar’s parent company, American Design and Build, to replace windows at our previous residence and had a good overall experience with that process. So naturally when we moved to Bel Air, MD and were considering a solar project, we reached out to American Sentry. We were not disappointed. The initial consultation was very informative and honestly very low key, considering the size of the project. While there was a sense conveyed that sooner would be better to get the project underway, it was far from a high pressure sales call. The installation went as planned too. The crews showed up at our home at around 8:30am, and before lunchtime they had finished, cleaned up and headed out. It was a very streamlined process. But they also took time when they were finished to discuss the work they’d done with my wife and me, answered questions that we had and discussed next steps before they left. True professionals, and extremely nice people. Throughout the entire process, American Sentry Solar was available to answer our questions and guide us through the process, and they took additional steps to insure our inspection went as planned (though understandably slower than usual) even with Maryland’s COVID-19 protocols going into effect at the same time. Once again we are very pleased with our experience with American Sentry Solar and American Design and Build. The next time we have a major home improvement project, you can be sure we’ll be contacting them again.
A. Frey, Solar Reviews

5 Star Solar ReviewInstallation review

I like to commend all the employees that were at our house over January and February from Mr. Hopp to the structural engineer that inspected our roof and attic. I worked in the union electrical constrution trade for over 30 years and was impressed with the electricians that were at our home and also the roofers that did the exterior install. I would certainly recommend your company to any one who might need info. Thank you very much. Frank Clymer
Frank Clymer, Solar Reviews

5 Star Solar ReviewGreat experience

I highly recommend American Sentry Solar! What a bunch of great guys who are professional, friendly, and accurate. From beginning to end, this was a great experience.

5 Star Solar ReviewGreat experience, professional and made in Texas!!

From Mike, my sales person, to the installers and everyone I talked with on the phone they were all honest and upfront with me about the product, process and installation. They handled everything including my HOA and CPS electric. Installers even finished about an hour early – less than 3 hrs total and totally cleaned up after themselves – awesome, friendly team. I loved that the panels are actually made in Texas – I like supporting my Texas people! I have been very satisfied with the 16 panel solar performance. I moved in my house 6 months ago and my highest electric bill was Nov at $47.33/415 KwH (just me here) – this month (Feb) it was 0 KwH used-solar produced 443KwH! The panels look great on the roof too. I totally recommend American Sentry for your Solar system (ha ha – ‘solar system’) – don’t hesitate!
Karen S, Solar Reviews

So far so good5 Star Solar Review

As of the writing of this review, the installation has been completed. All that’s left is the final inspection. So far there were no hassles and every step of the process was thoroughly explained and then completed in a timely manner. Everything was so easy!! They provided all the information my HOA requested. The customer service is remarkable. I would recommend this company to anybody!!
Sebastian, Solar Reviews

American Sentry Solar was amazing to work with5 Star Solar Review

They did all the leg and paperwork for us. Took care of all the permits and working with my electric company. They were always quick to respond to any question and great to work around my schedule. If I had to go back and do it over again I would still chose American Sentry Solar.
Jennifer, Solar Reviews

I waited to write this review5 Star Solar Review

I waited to write this review because I was sure that something would go wrong. I thought that there would be a hassle between pulling permits, actually doing the work, getting an inspection, getting rebates, and then finally receiving our first energy bill. I must say I was wrong. Everything was so easy!! I didn’t have to deal with my HOA (the company did it all for me), setting up an appointment for installation was easy, we passed our inspection, and our savings on our energy bill were immediate. We went from $150 to $50 energy bill for the last two months (and it was pretty cloudy and rainy those months). I’m still waiting for a hiccup in the whole process and am amazed by how smooth it went! I would recommend this company to anybody!

An excellent experience with an excellent company5 Star Solar Review

American entry Solar is an excellent company to work with and provides excellent service and an excellent product. Everyone was polite, friendly, and professional. The sales staff was knowledgeable and not pushy. Installation was quick, taking two days. Installation would have only been one day had weather not been a factor. And they cleaned up after themselves at the end of each day, leaving nothing laying around in my yard after either day. Had it not been for the fact that I could see the progress on top of my roof, I wouldn’t had known they had been there when I got home from work. I was kept informed of what was going on, every step of the way and they handled all of the paper work for permits, HOA, and rebates. The panels themselves have been a great investment outperforming our expectations. I couldn’t be happier with the service, the people, or the product.
5 Star Solar ReviewVery good company to deal with. The installers were polite and very professional. They had solar installed in no time. I would recommend this company the inspector that came out said that there was never a problem with this company.
Sandra Johnson, Google
5 Star Solar ReviewOutstanding job by the team at American Sentry Solar. Best price. Quality workmovement job and definitely will again. Top notch organization.
Robert Shrader, Google