Now Baker Home Energy starts off with this rift.
There are a number of reasons to install solar panels. Bottom line, it is a good decision. There are also a number of reasons now is the best time to make the switch. You’ve probably noticed that electricity rates are always rising. Maybe you’ve heard of the Federal Investment Tax Credit? Because then maybe you’ve even heard the ITC is expiring in 2021.
Yet you also have heard the term Net Energy Metering before. However you don’t know what that means. Read on to find out and to learn about the top 6 reasons you should not wait any longer to go solar.
ITC is Expiring
The ITC (solar solar investment tax credit), which has helped drive the growth of the solar industry since its passage in 2006, begins to expire in 2021.
For many people, the ITC alone is the reason not to wait to go solar. The ITC is an IRS program where 30% of the total cost of your solar project is returned to you in the form of a dollar-to-dollar tax credit. For example, if you install solar panels and it costs $30,000. Then you will owe $9,000 less in federal taxes. It is the government’s way of paying for 30% of your system.
It gets even better because not only can you apply the cost of your panels and components, but any other work you paid for can be applied as well, such as roof work and construction. Home batteries too!
However and it basically went away. So I do have the tax liability to apply most of the entire ITC to your taxes the first year. However I’ll be able to carry over the remainder to subsequent years for every year the ITC program is in existence.
It is suggested you speak to your tax professional to understand exactly what impact the solar panels and their investment tax credit. All that is now extinct for new solar except in your State. So you will have on your tax situation.
Yet if you waited until the last minute to go solar before the ITC expires, you could end up waiting too long. Yes folks. It’s over and there was a rush of homeowners trying to go solar before the deadline. I know solar contractors weren’t able for some to install in time.
Net Energy Metering is Changing
On top of the fact that the savings of ITC are soon fading away, changes are also coming soon to net energy metering (NEM). That’s the billing mechanism used by utilities for those who install solar panels. But, if went solar before these changes hit, you’ll be grandfathered in. Plus the benefits of the current program for the next 20 years.
The current Net Energy Metering structure recognizes the solar electricity that a home produces to be of equal value to the electricity the home draws from the utility grid at night and on cloudy days. When a solar system produces excess electricity, your meter literally runs backward as the power flows onto the grid. When you need that power back your meter runs forward as the power from the grid flows back to your house.
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