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Tesla Powerwalls & Tax Credits: What You Need To Know

Photon Brothers Tesla Powerwall Closeup

The Tesla Powerwall is a residential battery designed to store solar energy. If you already have a robust solar system in place, you can use the Powerwall to stop relying on the grid for your energy needs. If you’re just getting started with solar energy, the Powerwall serves as a backup energy source, ensuring you have power during intermittent outages. But does Tesla Powerwall qualify for a tax credit? The answer is yes.

We created this guide to help you understand what rebates and incentives are available to consumers who install the Powerwall in their homes. You’ll learn more about the following:

Interested in installing a Tesla Powerwall?

Adding a Tesla Powerwall to store excess solar energy is a great way to achieve energy independence and gain maximum energy savings. Photon Brothers is a Tesla Premier Certified installer, and we can integrate your new Powerwall regardless of your existing solar setup. Contact us at (720) 370‑3344 to discuss your needs or click below to use our instant cost calculator.

What Is the Tesla Powerwall?

The Tesla Powerwall is a home battery used to store energy from your solar system. Each solar panel contains photovoltaic (PV) cells, which absorb the sun’s energy and then turn that energy into an electrical current. This makes it possible to charge your phone, run the dishwasher, and do many other activities with solar power instead of having to rely on fossil fuels. As a result, solar energy is much cleaner than many other forms of energy.

Once your solar system produces energy, the Tesla Powerwall can store it until you need it. For example, if a severe storm knocks out the power in your neighborhood, you can use the energy stored in the Powerwall to keep frozen foods and other perishable items from going bad.

Tesla’s Powerwall also has several features designed to make it easier to use your solar system. One of those features is the ability to accurately monitor your energy usage, which allows you to adjust your habits accordingly. The Powerwall can also help you determine if you qualify for any of the tax credits, rebates or other financial incentives available to consumers who use solar energy.

Tax Credits for Renewable Energy

The Tesla rebate is just one of the many financial incentives available to consumers who are willing to use cleaner forms of energy. You may also qualify for the Federal Solar Investment Tax Credit or local/​state tax rebates.

Federal Solar Investment Tax Credit (ITC)

Between 2022 and 2032, the federal government is giving homeowners a tax credit equal to 30% of the cost of a home solar system. This is known as the Federal Solar Investment Tax Credit (ITC). To claim the credit, you must file a federal tax return. You must also take the credit in the same year that you install the system. For example, if you decide to install a solar system in 2024, you must take the tax credit on your 2024 tax return. You can’t install the system in 2024 and then wait until 2026 to ask for the credit.

Local and State Rebates

If you live in Colorado, you may qualify for one of the following rebates:

  • Colorado State Tax Credit: Colorado residents may qualify for a 10% tax credit on eligible Powerwall models.
  • Xcel Energy: If you install a Powerwall in your home, you may qualify for a $2,500 rebate for each unit. Xcel also offers an incentive of $100 per year for up to 5 years to join its virtual power plan.

California also offers several incentives to residents interested in reducing pollution and increasing energy efficiency:

  • Property tax exemption: If you install a Powerwall as part of a complete solar system, you may qualify for a property tax exemption.
  • Self-Generation Incentive Program (SGIP): SGIP offers rebates as high as $1,000 per kilowatt-hour to customers who use SCE, PG&E, SDG&E and SoCalGas as their utility providers.
  • Local Utility rebates: Many California utility companies offer their own rebates to consumers who install Powerwalls or other solar system components.

Maximize your solar investment with a Tesla Powerwall

As temperatures continue to rise, so do your monthly utility bills. Installing home solar system components, including the Tesla Powerwall, can help you keep your energy costs in check. Contact Photon Brothers to learn more about our installation process. Our master electricians have a perfect safety record and our work comes backed by a 25-year parts and labor warranty.

Photon brothers David Raichart

David Raichart

Denver sky

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