IF you’re thinking about converting your home to solar power, you have plenty of company. According to the U.S. Department of the Treasury, more than 750,000 families who filed 2023 tax returns through May 23, 2024, claimed residential energy tax credits for rooftop solar, reporting more than $20.5 billion in qualified solar-electric property expenses.

Homeowners are converting to solar power for good reason. Reducing your electric bill, or eliminating it entirely, is certainly an appealing prospect—especially if you live in areas where utility costs are high or where heating or air conditioning is required for most of the year.

Just ask Shaun Eli Breidbart, 63, a stand-up comedian in Pelham, N.Y., about a half hour north of Manhattan. In July 2022, Breidbart added 22 solar panels to his four-bedroom, Colonial-style home. “I switched to solar for a couple of reasons,” he says. “I care about the environment, but that was a side benefit. The main reason was economic—I wouldn’t have done it if it didn’t pay for itself.”

Breidbart still heats his house with natural gas, but he uses electricity to power the home’s central air conditioning and appliances and to charge his Tesla Model Y. His electric bill, which previously averaged $300 a month, is now about $32 and consists mostly of a connection fee, he says.

Breidbart took advantage of both federal and state tax credits to fund his solar conversion. The Inflation Reduction Act of 2022 includes a provision that increased the federal residential solar energy tax credit to 30% of the cost of solar panel installations between 2022 and 2032. That credit decreases to 26% for systems installed in 2033 and 22% for systems installed in 2034. The credit will expire in 2035 unless Congress renews it.