SOLAR SYSTEMS

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Solar Systems

Going solar will increase the value of your property while making it far cheaper to live in until you sell and with the army of solar companies competing for your business the costs are getting lower and lower everyday. But do you get what you pay for? Absolutely! Are all solar companies/systems the same? Absolutely not!

What to ask your solar contractor.

What kind of panels does he/she suggest and why?

What is the warranty on the panels?

Are they warrantied against accidental or storm damage?

Ask about the inverter and if it’s future proofed for EVs (Electric Vehicles) or back-up battery supplies as both will play a major part in shaping our electricity usage for the next generation.

Purchase V Lease V PPA V PACE

To purchase a system in my book is always the better to go. You own it, you can take it down and resell it, you can uninstall it and reinstall it or you can add the value to the property price. 

With a purchase you are buying the hardware, the racking, the cabling and the panels. The power it creates from the sun will be forever free so long as the system is working. Most purchases are by way of financing and every solar company will have several financing options depending on your credit score, and term, some as much as 25 years. A solar purchase can save you up to 40% on your current electricity bills. Homeowners going solar can also avail of a federal SITC (Solar Investment Tax Credit), currently at 26% but dropping for the next 2 years when it goes away completely.

To lease a system you are basically renting the hardware and using the free electricity it produces. Most leasing companies will save you 20-30% off your electricity bill and although you may agree to rent it for up to 30 years you will never own it. ‘What happens when the lease is up?’ is a very good question to ask your contractor as answers may vary. However, all maintenance will be carried out (most times free) by the leasing company. Leases are more geared towards homeowners who cannot avail of the SITC (Solar Investment Tax Credit).

A PPA is a power purchase agreement, while in theory you don't buy or rent the equipment you will agree to buy the power it produces at slightly lower rates than your utility company.

PACE is a program designed to help everybody regardless of credit score go solar. Property Assessed Clean Energy is instead, built into your property tax so instead of paying your utility company every month for energy you pay your much reduced solar costs as a line entry on your property tax which is paid every november. Some property owners elect to split it into twice per year - usually April and November.

PACE is an excellent choice for the majority of homeowners and is well worth exploring with your contractor.

PACE is not available in Bakersfield but is available in other parts of Kern County and up to 94% of California as well as 35 other states

Will PACE put a lien on my house?

Yes. But because PACE is a lien, it means you can also claim the interest on PACE for your taxes alongside your mortgage interest. We urge you to talk to the PACE provider in your area for exactly what you can and cannot claim for.

PACE is open to many energy efficient home improvements to both business and residential. More info

What happens if I want to sell my home after I go solar?

With a purchased system you can do one of three things. You own the solar system so you can take it down and take it with you. You can take it down and sell it. Or you can add the remaining money owed on the finance to the value of your property so check with your finance company if there is a prepayment penalty and ask for the buyout price - then add it to your property value.

On a lease or a PPA, the equipment must remain on the roof whether you own it or not so you must hope the new owners want solar and qualify to continue your agreement. Most leasing and PPA companies now have dedicated departments to assist in the transfer of agreements. And most new homeowners would much rather buy a home with no electricity bills anyway.

How much value will it add to my home?

The question everybody asks. 

For a purchased system of say $30,000 you can safely add $30,000 to the property straight away. The beauty about this kind of valuation is you can also claim 26% of that $30,000 in your next tax window.

Now you’ve just raised the value of your house by $30,000 while the solar system only cost you $22,200 after you claim your $7800 in tax credits.

A lease or a PPA will add no monetary value to your home but will increase desirability and appeal. Homes with solar, whether purchased, leased or PPA’d always sell quicker than homes without solar. Leases and PPA sometimes have a lower monthly repayment but may have up to a 3% accelerator.

Will I still have power during a black out?

No, just like your neighbours you will have no electricity in the event of a black out. Remember how solar works: Power generated through your system still uses the grid - when the grid is down, you’re down too, unless… you have a battery back-up system and most solar companies are offering power storage and with the tax credits available, why not? But remember also, your batteries will not have enough power for you to run your AC or your pool. You will be able to watch TV, keep your home alarmed, you’ll be able to charge your devices and of course keep your fridge/freezer on and obviously your lights for up to 10 hours on an 8K system. Brands will differ.

They’re not very attractive

A lot of panel arrays we see today were built in the 2000s and 2010s and admittedly were less than beautiful.Today we have SunPower and Panasonic designing beautifully sleek all black panels that absorb more of the sun’s rays meaning much more energy efficient panels than traditional blues. Check also Canadian and Solaria Panels too as they are also offering jet black.

What if my house is south facing and I don’t want the panels on the front?

Not a problem, just ask your solar contractor about a reverse-tilt or a ground-mount or even a separate structure like a carport or patio cover.

Solar ITC

The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the growth of solar energy in the United States. Since the ITC was enacted in 2006, the U.S. solar industry has grown by more than 10,000% - creating hundreds of thousands of jobs and investing billions of dollars in the U.S. economy in the process. In 2015, SEIA successfully advocated for a multi-year extension of the credit, which has provided critical stability for businesses and investors. Despite the overwhelming success and popularity of the ITC, the value of the credit did unfortunately start decreasing after Jan 1st 2020.

Quick facts

● The ITC is a 26 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. The Section 48 commercial credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms.

● The residential and commercial solar ITC has helped the U.S. solar industry grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.

● Congress passed a multi-year extension of the ITC in 2015:

When posting your project you must include your address (on auto) so our solar contractors can see your home on google roofs and determine the best position for your panels, or even if your house is suitable at all.

He/she will also be able to predict any possible shading issues due to tall trees or power lines by your home.

You must also include your utility company account number so our contractors can calculate how much power you need to generate on an annual basis.

Also include your credit score. Most times the finance company will determine your APR (annual percentage rate) from your credit score. - see further details to learn how a higher credit score can lower your repayments considerably!

Lastly, state whether you want to purchase, to lease, or PPA the system - or maybe you want bids for each.

Include roughly how much tax you and your spouse currently pay. If you don’t pay enough to avail of the tax credits over 5 years your contractor may deem a purchase is not in your best interest and offer a lease or PPA instead.

Don’t be fooled - just because you get tax back, does not mean you don’t pay tax. Your tax-back money is the change you are owed because you overpaid every week or month.

 

CONTINUE

Hiring anyone to carry work in your home can be daunting. Letting strangers into your home is even more scary. While many homeowners may go into detail about pricing and materials and quality of work – they rarely ask their contractor for their license details and never ask about their possible criminal background or if their staff are felons.

For your peace of mind, all solar contractors featured on 23HourBids.com have been background checked for your safety and security. Don't let anyone into your home without the 23HourBids.com seal of safety and security.

Watch this short video below to see how we protect you, your family and your belongings.