Is Your Investment in Home Awnings Tax Deductible or Qualify You for a Tax Credit?

In most cases no, traditional home awnings aren’t tax deductible and will not qualify you for a tax credit. Exceptions may exist if you’re installing awnings on a home office (part of your home that is only used for business) or installing solar awnings, in which case you may be eligible for certain tax credits.

The federal government offers tax credits for certain home improvements that increase the energy efficiency of your home. These tax credits are intended to encourage homeowners to make eco-friendly upgrades to their homes, such as installing solar panels, energy-efficient windows and doors and insulation.

What Are Solar Awnings?

Solar awnings are a type of shading system that use solar panels to generate electricity while providing shade to outdoor spaces. They typically consist of a traditional wood or metal frame patio covering (often attached to the home) with photovoltaic (PV) panels integrated into the roof instead of fabric or traditional roofing materials to capture sunlight and convert it into electricity.

The electricity generated by the solar panels can be used to power outdoor lighting, fans or other outdoor appliances, or it can be stored in batteries for later use. Solar awnings can also be connected to the grid to feed excess energy back into the system.

How Can Solar Awnings Be Used?

Solar awnings can be implemented in a variety of settings:

• Residential use: Solar awnings can be installed over patios, decks or other outdoor living spaces at home. They can provide shade and help reduce cooling costs during hot weather, while also generating electricity to power outdoor lighting, fans or other appliances.

• Commercial use: Solar awnings can be used in restaurants, cafes or other businesses with outdoor seating areas. They can provide shade for customers while also generating electricity to reduce utility costs.

• Industrial use: They can provide shade for workers in outdoor areas such as loading docks, parking lots or manufacturing facilities while reducing energy costs.

• Emergency use: Solar awnings can also be used in emergency situations, such as during power outages or natural disasters. They can provide a source of electricity to power emergency lighting or other essential equipment.

The Downside of Solar Awnings

Appearance: Solar panels generally don’t match with your home’s exterior aesthetic unless you are going for the future space-station aesthetic (which most homeowners are not). They can reduce curb appeal and be a turnoff to home shoppers when you try to sell.

Cost: Installing solar awnings will cost you significantly more than going with traditional fabric awnings and usually saddle you with ongoing monthly lease payments for as long as you have them installed.

Permit: Depending on the type of structure, you may need a building permit for the solar installation of your choice.

Fixed feature: Unlike traditional awnings, you won’t be able to retract your solar awning, which can be inconvenient if you only wish to use them in the summer and close them for winter.

Lackluster savings: The value of the tax credit might not leave you in a net-positive position, even when factoring in the slight reduction in energy costs.

Maintenance: Solar awnings are not a worry-free, set-it-and-forget-it investment. They will require maintenance. Any maintenance you perform on patio support structures (like painting or refinishing) may require professional removal of solar equipment and reinstallation.

Discourage potential buyers: Potential home buyers may need to take over payments or equipment lease costs. Buyers will also need to be willing to deal with the maintenance challenges solar awnings inevitably bring. Solar panels in general can make your home harder to sell, and the minor utility cost savings of solar awnings might not justify the added hassle.

Find Your Custom Commercial and Residential Awnings in Phoenix

At Arizona Awnings, we specialize in designing and installing a diverse array of high-quality residential and commercial awnings. If you are looking for worry-free awnings that will require little to no maintenance, make your home look beautiful and provide exceptional shade – we can help.

Whether you’re looking to install a retractable awning over your backyard patio or maximize your dining space with a weather-resistant restaurant awning, we’re here to turn your vision into reality.

To discuss your awning project and receive a free estimate, call us today at 602-252-3430.