Going solar can be an incredible investment for the future, and one of the most important considerations before installing solar is to decide whether you want to re-roof before the install or wait.
Solar panels are often warrantied for at least 25 years and can often last longer than your roof—especially if your roof was a few years old when you installed your solar system.
Will a new roof qualify for the Solar Tax Credit if you are also installing solar panels? Let’s find out!
Solar Investment Tax Credit
Though we are not tax professionals, we have been in the solar market for years and know that the Tax Credit can be beneficial for many homeowners. At this time, the federal Investment Tax Credit (also known as the solar tax credit) allows homeowners to deduct 26% of the cost of installing solar from their federal taxes for 2021. In 2023 it will drop to 21% and then down to 0 after that.
So, the question is, does a new roof automatically qualify you for the Solar Investment Tax Credit? The short answer is no.
Many solar contractors claim that you can bundle a new roof with your solar panel installation and use the tax credit on the entire project. It sounds too good to be true right? That’s because it is.
The Solar Tax Credit Law
The Solar Tax credit allows solar shingles or solar tiles, but not an entirely new roof. Yes, it can be confusing since the tax code writers included the word “roof” in the tax law. The provision here is that the law states that you can claim the tax credit if the solar panels make up the roof surface or structural component.
The caveat is that the tax language intends for the tax credit to cover solar pergolas, shingles, tiles, skylights, or other solar technologies where the solar panels ARE the roof surfaces or structure.
We know this can be confusing, which is why it is important to hire a licensed solar contractor to install your solar panels and help you lawfully qualify for the Solar Tax Credit.
IRS Guidance for the Tax Credit
Though some solar contractors try to argue that the roof is a structural component of the solar panels, the IRS is very clear on the matter. They state that a traditional roof or structural components DO NOT qualify for the Solar Tax Credit. However, some solar roofing tiles or shingles that work as solar collectors and perform like traditional roofing may qualify for the credit. Roof decking or rafters that serve a structural function also DO NOT qualify.
For ground-mounted solar panels, the mounting structure qualifies since it serves the purpose of supporting the panels and nothing else.
Avoid Solar Scams
Don’t fall for the claims that solar contractors can get your entire re-roof covered by the Solar Tax Credit. Hire a trusted solar contractor that will tell you the truth, and never buy from a solar sales organization that subcontracts out its work. Dealing directly with the owner and technicians will help you make the most informed decision for your property.
Don’t believe everything that you read on the internet and meet with a trusted tax accountant or lawyer if you have questions regarding your eligibility or the Solar Tax Credit. Claiming a credit when you are not entitled to could cause you serious problems in the future.
Go Solar in Tampa Bay with Super Solar
If you are interested in installing a solar system on your Tampa Bay roof but are unsure if you should re-roof your home before the install, call our team at Super Solar! We will inspect your roof to ensure that it is in good condition for a solar installation and can help you determine if your install qualifies for the Solar Tax Credit.
Ready to get started? Call Super Solar today— (813) 680-5627!