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With climate change becoming more of a wide-spread concern, alternative forms of energy have been increasing in popularity all over the world. Solar panels are one the most well-known forms of clean, renewable energy, and many Americans are happily making the switch.

If you’re looking to transition to energy you can feel proud of, but you’re not exactly sure where to start, we’ve got you covered. Thanks to this step-by-step guide, you’ll be able to take actionable steps in your switch to clean solar energy!

Is My Roof Ready?

Before considering solar, ask yourself if your home withstand the panels in the first place. Although solar panels are made for all climates, they are not made for all roof types. There are a few roof-related factors to consider when you are looking to install solar panels on your home.

In most cases, “rooftops may not be suitable for solar systems due to age or tree cover. If there are trees near your home that create excessive shade on your roof, rooftop panels may not be the most ideal option.”[1] Fortunately, Momentum Solar offers little-to-no cost tree removal services when you decide to go solar. We know how important maintaining nature is to the environmental health and ecosystem, so we’ll only remove the trees necessary and will leave you with as much greenery as possible.

Another bit of information to consider is the slope of your roof. Typically, solar panels perform best on south-facing roofs with a slop between 15-40 degrees, but other roofs are still completely viable options.

Types of Financing

Now that you know if your home is compatible with solar panels, let’s talk financing. The power purchase agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer’s property. A typical PPA can range from 10 to 25 years, and during this time the developer remains responsible for the maintenance and operation of the system for the duration of the agreement.2

If a PPA is not for you, there is the option to take out a loan for your system or pay cash. To get a solar loan you can go through your traditional bank or explore other institutions that offer solar energy loans. Another form of payment for solar panels is cold, hard cash. Although this may not be a typical payment method, it certainly has its perks.

“When you pay cash, you can benefit from the 30% Residential Renewable Energy Tax Credit and keep that cash in your pocket instead of handing it over to the bank or a solar power lease company. Paying cash also can provide the shortest solar power pay-back period, generally between 4 and 7 years.”[2]

As you can see, there are various types of financing options available if you are looking to make the switch to solar. Depending on the system and your personal financial situation, this may influence your decision on how you would like to purchase your panels. Luckily enough, there are plenty of options for homeowners to choose from.

What Incentives are Out There?

Going solar not only has its perks for the environment but can also benefit your wallet. Depending on where you live, qualified homeowners can apply for federal and state tax incentives. Solar tax credits are a federal incentive that can give qualified homeowners a 26% credit that can be applied to their annual taxes. Formally known at the Investment Tax Credit (ITC), the solar tax credit can be used as a deduction by the homeowners, essentially giving them a 26% discount on their solar system.[3]

If the 26% tax credit isn’t an incentive enough, homeowners can often lower their monthly utility bills. According to HomeSelfe, “Using solar panels instead of relying on a utility company can help you cut your electric bill by up to 50% per month. When your home has solar panels, energy from the sun will be used to power your electricity, except for when the sun is not present, such as during thunderstorms or at night.”[4]

One thing to keep in mind about the ITC tax credit is that it is continuously decreasing each year. The solar ITC schedule shows a slight decrease each year since 2019 starting at 30%, then dropping to 26% in 2020 and then potentially dropping to 22% in 2021. After 2021, the residential credit drops to zero while the commercial credit drops to a permanent 10 percent. This is why so many homeowners are going solar ASAP because the sooner the switch the better the incentives they receive.[5]

The ITC tax credit and the possibility of cutting utility bills in half are great incentives to consider if you are thinking about going solar. To find out more about the ITC tax credit, speak to your financial advisor or connect with a Momentum Solar specialist to see if you qualify for these benefits.

Finding the Right Solar Company

Now that you are equipped with the knowledge on how to go solar and what to look out for, it is time to start your journey. Here at Momentum Solar we are dedicated to the customer experience and confident in our ability to provide affordable energy options to qualified homeowners. We handle the entire process from solar enrollment all the way through installation and activation of every system – and we’ll be there for you every step of the way.

Call 1-(888)-MOMENTUM or visit momentumsolar.com for more information about how you can go solar today!

 

[1] Enery.gov- https://www.energy.gov/eere/solar/homeowner-s-guide-going-solar

[2] Sullivan Solar Power- https://www.sullivansolarpower.com/residential/solar-cash#:~:text=Cash%20Payments&text=When%20you%20pay%20cash%2C%20you,between%204%20and%207%20years.

[3] Solar Reviews- https://www.solarreviews.com/blog/solar-panels-florida-worth-it-expert-savings-guide#:~:text=The%2026%25%20solar%20tax%20credit,discount%20on%20your%20solar%20system.

[4] HomeSelfe- https://www.homeselfe.com/4-ways-solar-panels-help-lower-monthly-bills/#:~:text=Using%20solar%20panels%20instead%20of,during%20thunderstorms%20or%20at%20night.

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

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