February 2023 - Momentum Solar

Month: February 2023

How Solar Panels Can Help Homeowners Save BIG in the Long Run

Posted on by Jennifer Scholl

We’ve seen them lining rooftops in our neighborhoods, adorning the top of parking structures and out in space generating energy for our astronauts. Solar panels are everywhere nowadays… but what’s the truth about savings when it comes to solar energy? 

The good news is that solar panels are an excellent investment for most homeowners. Benefits for many who go solar include saving money long-term, increasing the resale value of your home, protecting against blackouts, and of course, the undeniable positive environmental impact.

With solar panel costs at a stable decline this past decade and the solar panel industry steadily growing, there’s no better time to get started on your solar journey [1].

Ready to talk to our team of our solar experts? Click the “Free Quote” button at the top of the page for more information!

Upfront costs

Residential solar is being adopted by an increasing amount of homeowners every year. Part of the reason for this boom is that the price of solar has decreased exponentially in the past decade.

Solar panel installation costs have dropped by 60% over the last 10 years. The average residential solar system in 2010 was $40,000, but prices have been cut in half [2].

Residential systems can vary in price depending on the number of panels, your location or storage options you may choose for your home. According to Wood Mackenzie’s energy analysts, the average installation cost for an 8 kWh system is $20,000. However, since many homeowners opt for smaller systems, your upfront costs could be even less [3].

Upfront costs can seem like a lot at first, but there are many ways you can save money. For example, there are many state-level and federal tax incentives available to homeowners across the U.S. – and with Momentum Solar, there are several different financing options to fit any budget! 

Tax incentives

There are many federal and state governmental incentives to assist in buying solar panels for your home. While incentives such as net-metering or local energy credits vary from state to state, there are likely incentives where you live. If you are a homeowner in the Northeast, you can find state-specific incentives here.

On a federal level, the Solar Investment Tax Credit (ITC) is available to all U.S. homeowners. It is a federal tax credit that allows homeowners to deduct up to 30% of their system. For more information on the ITC and to see if you qualify, visit our blog, Everything You Need to Know about the Inflation Reduction Act.

Utilizing these state and federal incentives can help reduce the upfront costs of your home’s system making it easier to afford. Claiming these can also help shorten your payback period so you can start reaping the benefits of the sun sooner.

What is a payback period?

While system costs may seem high at first, keep in mind that for the environment and your wallet, the investment now is more than worthwhile.

A payback period is the time it takes for your solar panels to make up for the initial investment. Solar panels can help you offset installation costs by lowering or even eliminating your electric bill, but it takes time. Payback periods vary greatly depending on the home’s energy output, the amount of solar you bought, and other factors [4].

The average payback period for residential solar panel systems is about 8.7 years, but since there are so many different variables that go into it, a general estimate can be anywhere from six to ten years [5].

Why should I invest in solar panels?

Investing in solar panels can have impactful long-term positive effects on the environment and help you save thousands of dollars throughout the lifetime of your system. “Homeowners who sell their homes within five years of installing a system ‘are almost getting 100 percent of their investment back,’” says a quote from the New York Times [6].

At Momentum Solar, we make it easy to invest in solar panels and to seamlessly begin enjoying the benefits of clean energy. With payback periods at all-time lows and savings at all-time highs, right now is the best time to invest in solar for your home.

Ready to reduce your carbon footprint? Call Momentum Solar today at 1-888-MOMENTUM to learn more about how you can invest in a more sustainable and cost-effective future.

 

 

Citations

[1] https://www.seia.org/research-resources/solar-market-insight-report-2022-q4 

[2] https://whatsupnewp.com/2023/01/the-amount-of-solar-home-energy-increased-32-in-2021-heres-how-it-happened/

[3] https://www.woodmac.com/news/opinion/is-the-end-of-high-us-solar-system-prices-in-sight/ 

[4] https://www.cnet.com/home/energy-and-utilities/do-solar-panels-save-money-yes-heres-how/#ftag=CAD-00-10aag7d 

[5] https://www.greenlancer.com/post/solar-payback-period#:~:text=What%20Is%20The%20Average%20Payback,is%20about%206%20%E2%80%93%2010%20years. 

[6] https://www.nytimes.com/2022/11/26/realestate/solar-panel-cost.html 

How Solar can Protect Against Power Outages

Posted on by Jennifer Scholl

Severe weather is serious and has been a danger to homeowners across America already in 2023. Whether you’re a victim of the Central Texas ice-storms, the worst in 15-years, or a part of the 58 million Americans on alert for severe weather, storms put electrical grids at risk and leave many homeowners without essential functions of their homes [4, 5]. 

Things we may take for granted, such as heat and air conditioning, a running refrigerator and working electrical outlets, may fail at a time of need due to power outages and blackouts. As summer storms and blazing weather quickly approaches, and winter storms begin to fizzle out, power outages are on many homeowners’ minds.

With harsh weather conditions comes power outages. By protecting yourself with solar and battery storage, you can minimize the effects of outages. With solar, you don’t have to worry about being tied to a dying power grid ever again.

The best way to stay energized during power outages is by making your home a solar island or going off-grid via battery storage. These terms describe a home that has been separated from the utility grid and can stand alone during an outage thanks to banked energy [1]. 

While your neighbors and others are out of power from the utility company, your home will continue to power itself from the battery power you’ve stored up over time. Ready to make this a reality for your home? Call 1-888-MOMENTUM today to speak to a local representative!

Am I off-grid?

One of the biggest things about protecting your home from blackouts with solar is that you need to have a power storage system, such as the Enphase system Momentum offers to all of its customers! Being grid-tied means that your home produces solar energy and uses as much of it as it can, but may still use power from the utility company if needed [1].

https://news.energysage.com/wp-content/uploads/2019/08/07.30.19_Islanding.png

When in a blackout, the grid will also shut down a grid-tied home with solar panels due to safety reasons. Therefore, you will no longer be pulling energy from the sun, and you will no longer be pulling energy from the utility company.  

To be off-grid, or a solar island, you need to have batteries as a way to store excess energy for your home. Momentum Solar’s Enphase battery system is the perfect solution for achieving independence during an extreme weather situation. With completely customizable kWhs of storage for your home, Enphase helps protect you and your loved ones in a power outage.

Ready to protect your home with Enphase? Click the “Free Quote” button on the top of the page for more information.

How long can I power my home?

If you don’t need air conditioning or heat, or your heat runs off of gas, your home can easily run main functions for 24 hours based on 10 kWh of storage [2]. The Energy Information Agency says that the average power outage is less than six hours, so your home will have more than enough power for a standard power failure event [3].

For more detailed information visit our previous blog, How long can your solar battery power your home in an outage?

These numbers depend on a few things, such as how much storage you opt for and what the normal output for your home looks like. Momentum Solar’s partnership with Enphase offers the Encharge 10 with 10.1kWh as well as the Encharge 4, which provides roughly 4 kWh of storage. You can stock up with as many as you’d like and allow your home the capability of being off-grid whenever you need it most! You can even use the battery system to switch to stored energy during peak usage hours. This means you’ll be able to save even more on your monthly utility bill!

Momentum Solar makes it easy to be off-grid. With our Enphase partnership, you can store backup power that is easy to use and keep important appliances running smoothly while reducing your carbon footprint. Your home will be able to draw energy from your storage system as well as continue to bank in energy during a power outage.

Ultimately, investing in solar batteries and storage solutions helps you save a lot of money long term. From spoiled food to frozen pipes, being able to maintain your home reliably is essential with today’s occurrences of extreme weather and can help save you money.

From hurricanes to wildfires, no matter what type of climate threats you face, Momentum Solar can help you keep you and your family safe. To get started with a Enphase battery system or to learn more, call 1-888-MOMENTUM today.

 

 

 

Citations:

[1] https://www.cnet.com/home/energy-and-utilities/do-blackouts-affect-homes-with-solar-panels-sometimes/ 

[2] https://www.solar.com/learn/how-long-can-a-battery-provide-power-during-an-outage/

[3] https://www.eia.gov/todayinenergy/detail.php?id=43915 

[4] https://www.kxan.com/news/local/your-photos-and-videos-help-show-the-scope-of-the-historic-2023-central-texas-ice-storm/ 

[5] https://abcnews.go.com/US/100-million-americans-30-states-alert-severe-weather/story?id=97217487 

Everything You Need to Know about the Inflation Reduction Act

Posted on by Jennifer Scholl

Tax season is right around the corner! So if you’ve just installed solar panels with us, or are thinking about solar for your home, Momentum Solar has the breakdown on everything you need to know about the Inflation Reduction Act.

The Inflation Reduction Act (IRA) is a United States federal tax incentive and is one of the most significant energy public investment proposals in history. Set to boost the economy for working-class families, the IRA aims to tackle the climate crisis by expanding targeted tax incentives that promote clean energy technologies such as batteries and solar [2]. 

Through the IRA, the Biden administration extended the Investment Tax Credit (ITC) through 2025 [3]. With this, comes many benefits to the solar industry as a whole with a five-year growth outlook increasing by 40% [1].

Thinking about if solar panels are right for your home? Click the “Free Quote” button on the top of the page for more information or call 1-888-MOMENTUM to talk to a local sales representative!

What is the Investment Tax Credit?

The Solar Investment Tax Credit (ITC) is a federal tax credit that supports the growth of solar energy in the U.S. It was enacted in 2006, and since then, the U.S. solar industry has grown more than 200%. With the government investing in clean energy, the ITC has created hundreds of thousands of jobs and invested billions of dollars in the economy [4].

The ITC is a tax credit provided by the federal government to individuals installing solar panels on their residential property [4]. You can claim the ITC for the tax year that your solar panels were installed. In August 2022, when the IRA was passed, the ITC raised its credit from 26% to 30% [3]. 

Let’s take a step back for a minute. What even is a tax credit? How do I claim it? 

“​​A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe” [3].

The tax credit provides a refund on your federal income tax for a percentage of the cost of your solar system [3]. To claim the ITC on your federal income tax for 2022, you need to fill out Form 5695 for the Internal Revenue Service [5]. As always, make sure to do your own research or talk to a tax expert or accountant when filing your taxes. For even more information, visit our previous blog here.

Am I eligible for the ITC?

Here are the eligibility requirements for the ITC, according to information from energy.gov [3]:

  • Your solar system was installed and placed in service before December 31, 2034
  • Your solar system is located at a residence belonging to you in the U.S.
  • Must own the system either through financing or cash purchase

How does the IRA affect someone with solar?

Residential solar has been record-breaking all around. Even amid supply-chain constraints and permit delays, residential solar installations have been increasing with 23,000 in Q3 of 2022 alone [1]. For more information on residential solar’s 2022 performance, visit our latest blog, The Solar Revolution in the US.

The IRA helps homeowners across America take advantage of the ITC. With its expansion, you can now get reimbursed for your installation costs even more. Not only is this credit assisting homeowners in saving tons of money, but it’s also helping the environment by fostering a cleaner future.

The ITC isn’t the only governmental financial incentive. Several state governments have their own tax incentives and net metering opportunities offered to local homeowners. You can find more information by checking out our coverage areas page and clicking on your state. If you’re a homeowner in the Northeast, you can visit our recent blog here for state-specific information.

If you’re a Momentum Solar customer from 2022, now is the time to get started on your tax returns as April 18 is just around the corner! If you’re thinking about solar for 2023, keep in mind the ITC is a great way to cut costs. Need some help deciding if solar is right for you? Visit our blog, Looking Toward the Future of Solar to get the low-down on solar in 2023.

Ready to get some panels on your roof? Click the “Free Quote” button on the top of the page or call us at 1-888-MOMENTUM!

 

 

 

 

Citations:

[1] https://www.woodmac.com/news/opinion/the-us-solar-industry-waits/

[2] https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/19/fact-sheet-the-inflation-reduction-act-supports-workers-and-families/ 

[3] https://www.energy.gov/eere/solar/articles/federal-solar-tax-credit-resources 

[4] https://www.seia.org/initiatives/solar-investment-tax-credit-itc 

[5] https://www.irs.gov/forms-pubs/about-form-5695 

 

The Solar Revolution in the US

Posted on by Jennifer Scholl

Solar output rises with the sun every day. Homeowners across the country are noticing the financial and environmental advantages of switching to green energy. The U.S. is increasingly using renewable electricity resources, including solar, each year. Homeowners like you who decide to switch to clean energy make a significant impact in neutralizing natural gasses in the country.

With a record-breaking amount of installs in 2022 and the government expanding tax incentives like the Inflation Reduction Act (IRA), the U.S. is producing more energy than ever before. 

Ready to do your part in saving the environment? Check out our solar plans or call us at 1-888-MOMENTUM today!

Solar is Booming in the US

According to the Energy Information Agency, or EIA, the U.S. is forecasted to have one-fourth of its energy produced by renewable resources such as solar or wind within a two-year span. This renewable power generation reduces the electricity supply from coal and natural gas [1]. These factors make the U.S. more independent and help foster a sustainable environment. 

The Federal Energy Regulatory Commission (FERC) takes it a step further, saying that in the next three years, solar energy will make up nearly two-thirds of U.S. energy additions. According to the FERC, U.S. solar capacity will nearly double from December 2022 to November 2025, and between now and then, natural gas addition will almost be completely counterbalanced [2].

In Q3 of 2022, the U.S. solar industry had more than 5GWh of energy storage. This has been the highest Q3 figure on record and is half of the entire capability of storage installed in 2021 [3]. You might be thinking that these numbers are from large corporations implementing solar energy, but residential homes have a major impact on the solar industry. With record numbers in categories such as solar panels shipped, quarterly installs and energy output, residential solar is putting in good work in the U.S [7].

Residential Solar’s Impact

With more than 23,000 installs in Q3 of 2022 alone, residential solar is breaking records of its own producing 375MWh of solar energy. This is equal to the CO2 emission produced by 648 homes’ electricity use for one year [6]. The previous record was made in Q2 of 2022 [3]. 

To join in on the clean energy revolution, click the “Free Quote” button on the top of the page or call us at 1-888-MOMENTUM!

The state leaders in residential solar were California and Texas, both of which Momentum Solar and its sister companies have offices in Texas has been the most fast-paced solar growth area in the U.S., and you can read about its incredible adoption of solar power in our recent blog Looking Toward the Future of Solar. 

Don’t worry if you’re not from a traditionally “sunny” state! The savings don’t discriminate based on location – in fact, solar panels can even generate energy on cloudy and overcast days. You can read more about how solar can save you thousands in our blog from last week, Your Guide to Solar in the Northeast.

To see how Momentum Solar can help you, check out our service areas or contact us today by clicking the “Free Quote” button at the top of the page.

Why Residential Solar is Booming

Rooftop solar panels in residential neighborhoods have been growing rapidly over the past 10 years. On average, solar has had an annual growth rate of 33% [4], which is more than other booming industries such as the international airlines, electric vehicle manufacturing or commercial banking industries [8]. According to data from 2021, there is enough solar energy stored to power 23 million homes [5].

There are many factors that are causing the residential solar boom. With carbon offsetting and sustainability efforts being some of the government’s goals, the government has set up incentives for homeowners at the federal and state levels. 

One of the biggest factors is the Inflation Reduction Act (IRA) which, under the Biden administration, expanded tax credits regarding solar. The ITC federal tax credit offers savings for solar-paneled homeowners and it recently increased from 26% to 30% [5].

Additionally, cost plays a major role in the increase of residential solar. Solar panel installation costs dropped by 60% over 10 years making solar more accessible to homeowners across America.

Residential solar energy is becoming increasingly more common, and Momentum Solar is here to help you get started. To see pricing in your area or to speak to a local sales representative call 1-888-MOMENTUM today.

Citations:

[1] https://www.eia.gov/todayinenergy/detail.php?id=55239 

[2] https://www.pv-tech.org/solar-to-dominate-us-capacity-additions-73gw-expected-through-2025/ 

[3] https://www.energy-storage.news/us-sets-another-record-for-quarterly-energy-storage-installation-figures/ 

[4] https://www.seia.org/solar-industry-research-data

[5] https://whatsupnewp.com/2023/01/the-amount-of-solar-home-energy-increased-32-in-2021-heres-how-it-happened/ 

[6] https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator#results 

[7] https://www.eia.gov/todayinenergy/detail.php?id=53679 

[8] https://www.ibisworld.com/united-states/industry-trends/fastest-growing-industries/