The “step-down clause”: Knowing this will save you money

Californians pay a premium for energy. California’s electric utilities are often listed among the top 10 most expensive utilities in the United States.

However, a typical California family can pay off their solar power system within an average of five years, equaling savings of more than $80,000 within 20 years.

Additionally, there is no better time to go solar than today! Why?

You can take advantage of a federal tax credit to help pay for your solar power system, which will in turn reduce or eliminate your electric bill.

The solar Investment Tax Credit (ITC) almost expired in 2016. But Congress passed a bipartisan appropriations bill which extended the tax credit through year 2019, with a step-down clause to commence from 2020-2022.

The step-down clause of the solar ITC is as follows:

  • 2020 – 26% for residential and commercial
  • 2021 – 22% for residential and commercial
  • 2022 – 10% commercial only

Want more information? Contact us today at Ross Roofing and Solar, 831-394-8581.