Residential Solar Systems

 Solar Power Advantages

• Solar electric systems reduce up to 100% your electricity costs, depending on system size. Utility prices are only going up every year. Solar electricity provides you security from rising electricity rates.
• A solar electric system adds value to any home or building and pays for itself for years to come. And, your solar electric system adds value without increasing your property taxes.
• Solar electricity is an environmentally responsible technology. Unlike fossil fuels, solar electricity does not emit pollutants which create harm to people and the environment.
• The current state and federal incentives for solar can save up to 80% of your system cost. State rebates can drop every six months, so make your reservation now!
• It is a proven technology with solar panels that are backed by a 25-year manufacturer warranty

 Is a Solar Electic System Right For Me?

A Solar electric system is right for most every home, depending on your motivation. Are you interested in solar electricity purely for economic benefit? Are you concerned for our environment or the social responsibility of your business? Are you concerned for our environment and global warming or the future health of your family? Are you bothered by the fossil fuel situation and wish to declare your energy independence? All of these are great reasons to go solar! Below are a few limiting factors to getting the most out of your solar electric system: 

• Do you have a south-facing area of roof or land that can accommodate your solar electric system?

  A south facing roof is going to provide the optimum potential for your system. Depending on your building orientation, other directions can also provide sufficient production; please consult us for these details.

• Do you have unobstructed space available for your system?

  Each kilowatt (kW) of solar electricity contracted will cover approximately 100-150 sq. ft. of area. This can be a roof, parking structure, ground area, etc. If you do not have ample, unshaded, structurally sound area for a solar panel, then your property may not be well-suited for a solar electric system.

• Do you have any daytime shading issues on your south-facing space?

  Trees, neighbors with larger buildings, vents, or other factor that cause shading throughout the day will cause significant decreases to your power production, therefore not making a suitable building for a solar electric system.

• Will you need to repair or replace your roof in the next 5 years?

  If so, then you may want to wait to add your solar electric system during that time, or consider re-roofing now to add your system.

Solar Electricity Savings Chart

Average per month	Yrs 1-5	Yrs 1-10	Yrs 1-25
Current electricity bill	$225	$260	$413
New solar bill (after-tax)	$183	$195	$265
Savings per month	$42	$65	$148
Total savings (term)	$2,528	$7,746	$44,256

Assumes 35% Federal tax rate and 9% California Tax Rate. Price of system is net of California Solar Initiative (CSI) rebate and Federal tax credit. Based on average increase of utility rates of 5.5%, on average, for the past 30 years.

The 30% Investment Tax Credit

History

The federal Energy Policy Act of 2005 established a 30% tax credit up to $2,000 for the purchase and installation of a residential solar electric system and solar water heating property and a 30% tax credit up to $500 per 0.5 kilowatt for fuel cells. Initially scheduled to expire at the end of 2007, the tax credits were extended through December 31, 2008, by the Tax Relief and Health Care Act of 2006.

In October 2008, the Energy Improvement and Extension Act of 2008 extended the tax credits once again (until December 31, 2016), and a new tax credit for small wind-energy systems and geothermal heat pump systems was created. In February 2009, The American Recovery and Reinvestment Act of 2009 removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.

Key Features

 In addition to these explicit benefits, there are many areas of spending that could include spending on solar, but aren’t required to. The bill was signed by President Obama on February 17, 2009. The following link are the section references if there are any areas you would like to see in the specific language of the American Recovery and Reinvestment Conference Report.

- For 2009 and 2010 projects, solar projects that are eligible for depreciation or amortization (typically those owned by corporate tax filers) can receive a 30% upfront cash grant in lieu of the 30% tax credit. The 30% tax credit for individual filers (i.e. residential sola electric systems) remains unchanged. The Treasury Department will administer the grant program and is required to pay out each grant within 60 days of the receipt of each application [Section 1603]. The grant is not subject to federal taxes [Section 1104]. There’s no word yet on whether the grant will be assignable. The same eligibility of the investment tax credit applies; in particular, this means that governmental and non-tax paying entities aren’t eligible. Almost all PV applications should be eligible, with the lone exception being swimming pool heating.

- For 2009 projects, corporate tax filers can claim 50% bonus depreciation expense [Section 1201(a)]. The remaining 50% of the depreciation basis is expensed according to the 5-year MACRS schedule. The depreciation basis is still 85% of the total system cost (the total solar electric system cost less one half of the 30% federal grant) [Section 1104].

- The cap on solar hot water heating equipment has been removed, making it eligible for the full 30% tax credit (but not the grant) [Section 1122].

- Projects that benefit from subsidized financing will not have their federal grant reduced [Section 1103]. This will put tax-backed municipal loan programs on safer ground.

- A 30% tax credit for factory equipment used in the manufacture of renewable energy equipment (including solar). The total budget for this tax credit is $2.3 billion [Section 1302].

For more detailed information concerning the residential renewable energy tax credit, follow this link to the Database of State Incentives for Renewables & Efficiency (DSIREUSA.org).