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THE FEDERAL SOLAR INVESTMENT TAX CREDIT (ITC) MADE SIMPLE

THE FEDERAL SOLAR INVESTMENT TAX CREDIT (ITC) MADE SIMPLE 1366 768 admin

What is it?
The solar Investment Tax Credit (ITC) is a federal tax credit for qualified customers who purchase solar energy systems for residential properties. The credit, which is applied to a homeowner’s income tax, is equal to a percentage of the cost of eligible equipment.*

The ITC delivers a dollar-for-dollar tax reduction in the income taxes that a homeowner would otherwise owe the federal government.* (e.g. a $10K tax credit means you pay $10K less in taxes)

How much is it?
That depends on when you start construction (and when you start generating electricity). Starting in
2021, it will be equal to 26% of the cost of eligible solar equipment. It steps down to 22% in 2023, so
the sooner you act, the more you can save.*

How do I qualify for the ITC?*
To qualify for the full 26% federal solar ITC, you must at least meet the following requirements:

• Valid through December 31,2022. Consult your tax advisor for details.*
• You must own your home. Renters are not eligible.
• You must own your solar panels. If you lease them, you cannot directly claim the tax credit.
• You must pay enough taxes to the federal government to qualify for the 26% tax credit. It’s a tax credit, not a rebate.

How do I receive my credit?
To receive your credit, you must complete IRS Form 5695 when you file your taxes and add your renewable energy credit information to your typical form 1040. Popular federal tax filing software includes this credit as a default. If you use an accountant or tax processor, tell them that you purchased solar.

What is a tax credit?
A tax credit is not a tax rebate. While a rebate pays you back, a credit offsets the balance of tax due. So if you owe little to no feder al taxes there is little to nothing to offset, and you may not be able to take full advantage of the credit.

On the other hand, if you pay at least as much in taxes as you get for your tax credit, you can pay off your tax debt with the credit and/or get the remainder after withholding as a refund. Even better, if you don’t owe the full amount of your tax credit in the first year, you can roll the credit over to pay tax debt accrued in the following years (for as long as the ITC is in effect.)

Do I need to purchase my system?
You may not have to buy a solar system outright to take advantage of the ITC. It’s possible to claim the credit with a solar loan, and sometimes the savings can be passed along as part of a solar lease.*

Purchase

You own the system,
energy and tax credits.*

Lease

The ITC savings can be
passed along as part of
your lease contract.

Loan

You may be entitled to
the full ITC credit (even if
you put $0 down).*

* Depending on your individual circumstances, you may or may not qualify. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar ITC and how it applies to your spec ific circumstances. Tax credits are subject to change. Please visit the dsireusa.org web site for detailed solar policy information.

HOW DOES SOLAR STORAGE WORK?

HOW DOES SOLAR STORAGE WORK? 1366 768 admin

Why is energy storage important?
As we learned last summer in California and just this February in Texas, electric utility providers are prone to employing public safety power shutoffs to help mitigate loss and conserve energy. For safety reasons, solar panels installed must also turn off when the grid goes down. This has led many solar-powered homeowners to seek a product that can keep their homes powered during an outage. Batteries provide a happy glimpse into a future in which utilities are less reliant on big power plants in favor of a network of distributed energy resources (known as DERs) across their grid.

How does solar + storage work during an outage?
To power a home during an outage, a microgrid must be established. A microgrid is a closed system that mimics the power provided by the utility grid. With SunVault, when a grid outage is detected, the microgrid kicks on in just milliseconds (the lights in your home will barely flicker). To preserve the battery to power the most important things in the home like the refrigerators, lighting and pumps. Non-essential appliances like AC units, which use a lot of energy, are usually programmed to turn off during these events. The goal is to create a harmonious system that can last a few hours — or in the worst case a few weeks — until grid power is restored.

For more information on how exactly solar and storage work together, check out this video.

Does storage benefit the grid?
Every solar power system, regardless of storage, benefits the grid and eases strain on utilities. Storage supercharges that benefit by lessening the load. In the future, utilities are considering ways to interact with the storage customers more actively to provide additional grid stability. This strategy will be key as renewables become more popular.

Why does storage costs so much?
In 35+ years of solarizing homes, we have learned that every home is different. Storage requires an even deeper dive into the anatomy of homes to understand the electrical wiring of the home and how the homeowners use power. Each home requires custom installation as well as robust and reliable hardware and energy management systems. Thankfully, the cost of the equipment itself has fallen dramatically. Similar to solar power, the costs of these custom installations installed by licensed professionals are greater than the equipment cost itself.

What’s the value of storage?
Unlike the clear economics of solar panels, the value of solar + storage is spread across additional considerations like grid reliability, utility programs and the emergency needs of the homeowner. So at this time, the value of storage is unique to the homeowner. That said, utility companies are also seeing the benefit of storage to the grid. It’s foreseeable that they will continue to modify their policies to incentivize homeowners to install storage in conjunction with their solar. This can be seen today in California, with utilities offering daily incentives for solar + storage homeowners to use their battery power from 4 p.m.-9 p.m. when utility power is at peak pricing.

In conclusion, SunVault is a reliable and beautiful solar + storage solution. While the value of storage will differ for homeowners across the United States, the price and functionality are ready to transform the way we power this country and the world.

THE TOP 10 REASONS TO GO SOLAR

THE TOP 10 REASONS TO GO SOLAR 1366 768 admin

It’s no secret: solar energy benefits businesses, organizations, and property owners in huge ways. Businesses all across the state, country, and world are taking advantage of everything a solar PV array has to offer. But when it comes time to make a decision about going solar, it helps to have the benefits laid out. That’s why we’re sharing the top ten reasons to go solar, to help you determine if a solar solution could benefit your business.

1. REDUCED OPERATING COSTS:

One of the most tangible and substantial reasons to go solar is the reduction of energy costs. The electricity a solar system produces offsets your electrical usage, significantly reducing or in some cases even eliminating your electric bill so you can spend money elsewhere, or save the difference. For more information on how this works, read our blog on how solar effects your electric bill.

2. GOOD RETURN ON INVESTMENT:

When a business considers any big financial investment, it is important that it has a large return, and a short payback period. Solar arrays typically have a payback period of 3 to 6 years, dependent on system size and financing solution utilized. After that payback, all financial benefits and savings contribute significantly and directly to your ROI.

3. ENVIRONMENTAL LEADERSHIP:

The demand for renewable energy is real and growing in our state and throughout the country. Customers, tenants, and prospective employees are increasingly weighing a property owner’s or company’s environmental policy and commitment to sustainability in their decision criteria. By going solar, businesses contribute to the expansion and adoption of carbon-cutting renewable energy technology, helping to build a more sustainable world.

4. TAX ADVANTAGES:

To compound on the savings from reduced energy costs, federal and state governments provide tax advantages to incent property owners to deploy solar energy solutions. A property owner with the right tax situation can reduce system cost by up to 50% with the federal Income Tax Credit and accelerated depreciation. A business who has gone solar can choose to spread this benefit over the life of a system or retroactively apply it to past tax years.

5. ENERGY COST STABILITY:

Electricity costs have risen over 70% in the past 10 years and continue to do so in a volatile way – making it difficult to budget this line item year over year. With solar, you can accurately forecast the cost of your energy use for more than 25 years. Predictable energy rates mean a more predictable budget.

6. IMPROVED PROPERTY VALUES:

The American Association of Appraisers has found that a building with a solar PV array has a higher market value than the same building without, as well as better resale values for owners.*

7. REDUCED CARBON FOOTPRINT:

Solar energy is clean, renewable, and abundant. Unlike fossil fuels, solar energy does not generate harmful carbon emissions and other greenhouse gases that are known to contribute to global warming. By using solar electricity instead of electricity generated with fossil fuels, your business can reduce its’ carbon footprint and contribute to a culture of sustainability.

8. LIMITED MAINTENANCE:

While a solar array does require some maintenance and cleaning to operate at full efficiency, there is virtually no day-to-day maintenance, making it an easy “tenant” for your business. An experienced solar developer can assist in maintaining a solar PV system to achieve maximum efficiency.

9. FLEXIBLE FINANCING OPTIONS:

There are a number of flexible financing options available for commercial businesses, including options that require little to no up-front costs. Regardless of available capital or tax appetite, modern financing solutions provide favorable options for businesses and organizations of every size. Whether you want to own the system outright, lease it over 20 years, or simply purchase the power from an array – there’s a solution for virtually everyone who is interested in going solar.

10. INCENTIVES ARE RUNNING OUT:

Nevada has been fortunate to benefit from federal and state solar incentives that make a solar investment an excellent business decision. However, these incentives are running out, and could be gone in as little as one or two months! If you’ve ever thought about going solar, now is the time to act and become a part of the Commonwealth’s solar community.

An experienced developer can help you determine if solar is the right decision for your property.