Residential Solar Panels ,Solar Service
Written by Lisa Walsh

Question of the Day: Will the new Administration affect my Solar Incentives?

Should we be concerned about the new Republican Administration and the future of Solar Power?

Solar Energy, Residential Solar Panels ,Solar ServiceDue to its tremendous growth, popular appeal, and ever improving economics, solar power enjoys increasingly bi-partisan support on the Hill and in Governors offices around the country.  Due to this, we predict very little, if any, impact on solar growth from the current Administration and/or a Republican Congress.  To help explain this, let’s look at the three main drivers of successful solar economics for the typical solar consumer – Federal Tax Credit, SRECs, and cost of solar equipment:

Federal Tax Credit:  30% of system cost.  This has been an enormously successful tax incentive enabling wide scale deployment of solar on both a utility and distributed scale.  Economies of scale have helped to drive the cost of solar; while further increasing demand – allowing the solar industry to grow exponentially.  This has been applauded by both major political parties for the private capital investment opportunities and huge job growth in the solar sector.   In fact, the US solar industry currently employs more people than the US oil, gas, and coal industries combined.

The 30% solar investment tax credit (ITC) was extended by Congress (many of whom were Republican) in late 2015 and is designed to decline in future years to eventually fall back to a permanent 10%.  The ITC schedule from the December 2015 legislation is as follows:

2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that in 2017, you can still get a major discounted price for your solar panel system.

2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.

2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.

2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.

In a nutshell, most in the solar industry believe it would be political suicide for the majority of congressional representatives to vote for a repeal of this enormously successful Investment Tax Credit that is scheduled to decline anyway.  There are too many solar jobs and solar projects in Republican districts for the majority of Republicans to consider advocating for repeal.  The horse is out of the barn and solar is winning!

SRECs: Maryland and Washington DC offer Solar Renewable Energy Credits to solarized homes and businesses.  This is a State/District-mandated incentive that, if anything, shows signs of expanding among the 29 States that have currently adopted an RPS (Renewable Portfolio Standard).  This is largely due to the fact that State Houses wish to support the exponential renewable energy sector job growth amidst the scheduled, declining Federal Support.

Solar Technology Costs:  Advancing technology, manufacturing scale, high adoption rates, and investor confidence in solar technology continue to drive down solar project costs.  We don’t see this momentum changing anytime soon.

Commercial Solar Energy, Residential Solar Panels ,Solar Service
Written by Lisa Walsh

Going Solar? Top 10 Things to Consider…

SES gives the skinny on going sunny

  1. Commercial Solar Energy ,Residential Solar ,Panels Solar Service1. Cut your Energy Losses
    In most homes, heating and cooling accounts for the most energy usage. Regardless of where your energy is coming from; gas, coal, solar, electric, wind, etc. a homeowner’s first consideration is to reduce the loss of incoming energy:
    • Replace old windows and doors with Energy Star products. This can reduce energy consumption by 7 – 15%.
    • Seal up any air leaks throughout the house, attic and basement.
    • Insulate! This blocks air loss in the winter and preserves cool air in the summer.
  2. Consider those Big Appliances
    Refrigerator:
    Keep the condenser coils clean. Keep refrigerator away from oven/washer/dryer and other heat producing appliances. Place with consideration to air circulation.
    Stove: Remember that gas is generally a more cost-effective choice than electric.
    Attic Fan: An excellent way of pushing hot air outside in the day, and drawing cool air at night.
  3. Need a new roof?
    If you think your roof may need repairing or replacing within the next 5 or so years –it may be worth replacing before the solar panels are installed. If you’re on the fence about replacing your roof prematurely, remember that installers such as SES do provide a Remove and Reinstall service where, for a reasonable fee, the panels will be safely removed then re-installed after re-roofing.
  4. Small Bite or Full Monty?
    Just about every solar energy company sells and installs Solar Electric (Photovoltaic) systems. However, solar water heaters are an entirely different type of solar panel and not every solar company installs them. Thus, not every solar company is likely to tout the cost-effectiveness of this mature technology. Solar water heaters require only a fraction of the roof space (and often a third of the cost) that a solar PV system requires. For a family of four, currently using electric to heat their home’s water – solar water heating may provide the biggest bang for your solar buck, providing around 75% of a home’s annual hot water. However, a family of two heating their water with gas may consider investing in a solar electric (PV) system sized for their usage. Insofar as solar electric (PV), many homeowners cover 60 – 100% of their electrical needs from solar. Some choose to offset as little as 25% and opt to add panels as their budget allows.
  5. READ your Energy Bill
    For electricity, your energy bill should tell you how many kilowatt hours you use per year. This is an important number as you generally do not want to install a system that will exceed your annual consumption. Experienced installers can help you assess this, but a good rule of thumb is to divide that number by 1200kwH and that will tell you the approximate max sized PV system you should consider. That will be represented in kW – probably something like 8 to 10 kW if you are an average consumer. If you heat your water with electric, then solar water heating should absolutely be considered first.
  6. Best way to pay for your solar system
    The beauty of an increased popularity in solar is that there are a number of ways a homeowner can finance their project. Without question, whether immediately or over time, Solar Power is far cheaper than your Utility bill.

Payment plans range from No-Money-Down leasing options to initial investments ranging from $2000 – $50,000 depending on your energy usage and type of solar system. Thanks to current financial incentives, many Marylanders receive over 50% of their upfront investment back the first year. Some of our customers have transferred funds from low yield CDs and even borrowed from 401ks in order to fund their higher-return solar investment. Other homeowners have no interest in ROI’s and fund-juggling and simply want a lowered electric bill/carbon footprint. Thankfully there is a wide variety of financing options available.

  • Know YOUR solar energy tax credits, grants and incentives
    Any solar salesperson worth his/her salt will visit your home with full knowledge of the available financial incentives for your state and county. For example, an Anne Arundel County resident has the good fortune of FOUR different financial incentives (for both PV AND solar water heating) that combine to offer a huge discount on their system. Acclimating yourself to current incentives for your county will help the sales process be much more informative for you. Every solar homeowner is eligible for a 30% Federal Tax Credit. Then SRECs (solar renewable energy credits), state grants, county tax credits differ across the region.
  • Solar Panel Placement
    Whether solar water heating or solar electric (PV), a south facing shade-free roof provides optimum conditions for solar panel placement. However, any shade-free roof – including East and West orientations provide excellent rooftops for solar panels. The number of panels installed depends upon system size, roof space and budget. Homeowners with a good amount of spare land may also consider ground-mounted systems, some of which offer solar tracking options where panels are mounted to motorized pole that literally follow the sun, improving solar efficiency by 40 – 45%.
  • How many solar panels on the roof?
    Insofar as solar water heating, a shade-free area of 64 square feet is typical to house two 4′ x 8′ solar thermal panels (sized to provide a family of four with around 75% of their annual hot water load). Most solar electric (PV) panels measure 3′ 6″ x 5′ 6″. So, a roof that is 30′ wide by 14′ from gutter to ridge will fit two rows of 9 panels. An experienced solar designer will get precise roof measurements and ensure the panels are placed in the most space-efficient and visually appealing design.
  • Choosing a solar energy installer
    Of course, the author of this blog would like to gleefully exclaim, “Choose Solar Energy Services!”. However, most educated consumers know that the best way of finding the best fit for an installer comes from shopping around for the popular 3 proposals/estimates. There are a lot of solar installers our there in today’s market. Some considerations:

 

Time in the Business: This matters. Obviously the more systems a licensed installer has installed – the more experience they’ve gained – and the more they’ve refined their installation technique. Just as important, however, is the question of whether the installer will be around in 5, 10 or 15 yrs when perhaps the incentives for solar have declined. An older company is likely to have deeper roots in the industry regardless of current solar trends and incentives. You want your installer to be around for the life of your system, 25 – 35 yrs plus. This narrows the field considerably.

Service Department: Solar Water Heaters require a 3 – 5 yr simple service visit. Does the installer provide this service?

All Options on the Table: A company who offers both leasing AND upfront purchase will likely lay ALL your options out on the table. This also goes for installers who offer both solar water heating AND solar electric.

There should not be a charge associated with a site evaluation of your home for solar energy. This is a necessary part of the sales process and should take place before the cost estimate/proposal is presented.

Happy Solar Shopping!