2020 New Build Mandate in Effect

California has always been the state leading the country towards a brighter, greener future. At the forefront of the nation’s green revolution, California constantly seeks new ways of innovating upon existing technologies to revolutionize society. Recently, solar panel installations have received renewed interest by the state, and are the subject of the California 2020 New Build Mandate guidelines. The new California Green Building Standards Code requires all newly built single residence homes to have solar panel installations. With home buying up in Orange County, San Diego County, and Riverside County, one has to wonder how these guidelines will affect Southern California residents?

Will The California 2020 New Build Mandate Save Money?

The answer is yes, the California 2020 New Build Mandate will. Newly built homes after Jan. 1 are required to have solar panel installations, while existing homes do not have to install solar panels. However, the California Energy Commission estimates that over a standard 30-year mortgage, a solar panel installation can save homeowners $19,000. Regardless of whether or not you are building a new home, solar panel installations are a sound investment to both save the environment and your money.

How Will The California 2020 New Build Mandate Affect Home Builders?

Home builders may be wary of the California 2020 New Build Mandate for new homes, however these new guidelines can help them just as much as home buyers. Home builders have the opportunity to form lasting business relationships with expert solar panel installation experts who can work closely with them on multiple projects, potentially driving down the cost of their bulk solar panel installation purchases. The California Building Industry Association estimates that solar panel installations will add $8,000 to $13,500 to the price of building new homes, making wholesale discounts of solar panel installations a great way to add surplus value to new homes. With home builders expected to absorb most of the cost of the California 2020 New Build Mandate, making connections with expert solar panel installation providers should be at the top of every home builder’s todo list.

Top Tier Home Energy: Ready For Change

At Top Tier Home Energy, we are more than ready to assist home builders in complying with the California 2020 New Build Mandate. When you need an expert solar panel installation provider for Orange County, San Diego County, Or Riverside County, look no further. We back all of our work with an industry-leading 25 year warranty. That’s nearly the entire length of a home mortgage, meaning that potential home buyers will feel confident in their new home’s solar panel installation. We’re excited to work with home builders in Orange County, San Diego County, and Riverside County as they strive to meet the exceptionally green goals set out in the by this ambitious new law.

January is when people start to get their taxes in order for the previous year.  They collect their W-2’s, gather their receipts and contact their tax preparer.  This year, homeowners have the perfect opportunity to save money on their taxes with a solar power installation.  The key is to obtain a solar power installation now before the federal solar power tax incentives disappear.

The Federal Solar Tax Credit was established in 2005, a tax credit applied to solar power home installations and solar heating systems and fuel cells.  While extended multiple times since 2005, 2019 is the last year for homeowners to take advantage of their first year of solar tax credits on their taxes.

How a Solar Power Installation Can Help Homeowners Save Money

The Federal Solar Tax Credit will soon be phasing out by percentages over the years homeowners have a solar system.  Homeowners who obtain a solar power installation in 2019 will be able to obtain a 30% credit, but over the years, this percentage will drop.  For instance, in 2020, this credit will drop to 26%, 22% in 2021, and disappear entirely in 2022 for residential solar installations.  Businesses with a solar power installation in 2022 can still enjoy a 10% credit, though.

As it currently stands, the 30% credit would be of the total cost of homeowners’ costs for a solar power installation.  For example, if a residential solar system installation cost $20,000, the 30% would account for a $6,000 credit on homeowners’ taxes.  Depending upon the amount owed in taxes, this could potentially work out to be a nice return for homeowners or potentially owing nothing to the federal government and rolling those credits over to the next year. Depending upon homeowners’ tax situation, this could end up being very lucrative for homeowners.

Qualifying for the Federal Tax Credit

In order to qualify for the federal solar tax credit, homeowners need to meet the following criteria:

  • The homeowners’ solar installation must occur prior to December 2019
  • Only homeowners, not renters, or business owners will be able to qualify
  • Solar panels must be owned, not leased
  • Homeowners must owe more than the solar tax credit in taxes in order to take advantage of the federal tax credit

Claiming the Federal Solar Tax Credit

Tax season is in the very beginning.  That means over the next few months, tax preparers will be very busy filing taxes on behalf of a variety of homeowners.  In order for homeowners to claim their federal solar tax credit, tax preparers should be careful to fill out the forms to collect the Residential Energy Credits. This process can help homeowners to claim the federal solar tax credit for their residential solar power installation.

To install a new solar power installation, consult the experts and call us at (949) 296-2296..

Top Tier Home Energy proudly services Riverside, San Diego and Orange County.

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