Big Win for the Solar Industry with Tax Credit Extension

Posted on August 12, 2022August 12, 2022 by n christ

This week, Senate voted to pass an important bill for Americans looking to switch to clean energy alternatives, The Inflation Reduction Act (IRA). This bill includes nearly “$400 billion over ten years in funding for climate and energy-related programs, and an extension and improvement of the U.S. electric car tax credit.”[1]

So, where do you begin with all of this tax credit mumbo-jumbo and how will it benefit you? Let’s get into it! Momentum is here to break it down for you.

If you are already an expert on tax credits and solar power and ready to start capitalizing on the benefits, speak with one of our specialists at 1-888-MOMENTUM or click on the “Free Quote” button above!

The Highlights of the Inflation Reduction Act

The Inflation Reduction Act is a “trimmed-down” version of the Build Back Better proposal that was stalled in the Senate several months ago. Once this new version was brought forward, it was passed swiftly, which was a great victory for climate champions. [2]

While this bill includes significant corporate tax and healthcare benefits that could help with inflation over the next decade, the climate portion of the IRA is most notable. This part of the bill represents $369 billion in spending – money to be used to further clean energy alternatives and climate change solutions. [3]

What Does this Mean for the U.S.?

Recent analyses show that the investments in this bill could put the United States on track to reduce our emissions by between 31-44% by 2030. This is a big deal, considering the last time American emissions were this low was 2005.[4]

What Does it Mean for Green Energy?

The IRA isn’t just for electric vehicles; it covers a wide range of green energy products like solar that can help reduce emissions on a global scale.

Below are some of the green energy products receiving funding:

$60 billion for solar panel and wind turbine manufacturing
$30 billion in credits for new projects
$27 billion for clean tech
$20 billion to reduce agricultural emissions
$5 billion for forest conservation
$4 billion for drought funding in Western states

In addition to this funding, there are several credits for home battery storage, an extension of the rooftop solar credit and, of course, the E.V. tax credit.

The ITC Tax Credit and E.V. Tax Credit: What is the Difference?

Each of these tax credits is different, one is for residential solar panel systems, and the other is for electric vehicles. Let’s take a look at the highlights of each, starting with the ITC Tax Credit (Investment Tax Credit).

The ITC Tax Credit

This tax credit has been extended by ten years at 30%[5]

Beginning at 30% and stepping down to 26% in 2033 and down to 22% in 2034
Since this tax credit decreases over the years, it is better to go solar sooner rather than later
This credit applies to residential and commercial solar systems
This tax credit applies to anyone who installed solar technology in 2022
The 30% also applies to energy storage, whether it is co-located or installed as a standalone system

The EV Tax Credit

Also known as the Electric Vehicle Tax Credit
This credit was recently renewed for another decade and will start January 2023 and will last until the end of 2032.
The tax credit itself is $7,500
The previous tax credit had a cap of 200,000 cars per manufacturer, and the new credit removes that cap at the start of 2023
The credit can be applied upfront at the point of sale if purchased from a dealer
All new vehicles, materials and critical materials will be made in the U.S.
Vehicles must have an MSRP of under $55K for cars and $80K for SUVs, trucks and vans, otherwise they don’t count, leaving out several Tesla configurations
Buyers can only take advantage of the credit if they make under $150K a year ($300k filing jointly)

How Can Momentum Solar Help You Go Green?

Now that green energy is back on the forefront for the U.S. government and consumers thanks to the IRA, it’s time to start capitalizing on its benefits.Our team can help you go solar with a click of a button. We proudly design solar panel systems that fits our customers needs perfectly and help put more money back in their pockets.

But wait, there’s more…literally.

Momentum Solar offers battery storage to create the perfect solar energy system. Whether you are looking to keep the lights on when the power is out or save money during peak electricity rates, we’ve got you covered. With the IRA now in place, you can trust Momentum to help transition your home to green energy.

For more information, please call us at 1-888-MOMENTUM or click on the “Free Quote” button at the top of the page!

[1] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[2] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[3] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[4] https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

[5] https://pv-magazine-usa.com/2022/07/28/solar-investment-tax-credit-to-be-extended-10-years-at-30/

How To Apply For Federal Tax Credit

Posted on October 16, 2019February 1, 2021 by Admin

There has never been a better time to switch to solar!

Due to federal and state incentives, qualified homeowners can lower their monthly electric bills with solar energy for no money out-of-pocket. Your tax credit may qualify for up to 26% of the cost of your solar equipment when you install solar panels or solar water heating system. This opportunity is only available through the end of 2022 – after that, the percentage will decrease periodically through the end of 2023.

How Solar Tax Credits Work

A solar tax credit is the amount of money that taxpayers can subtract from the taxes they owe to the government from the previous year. If you made a solar investment that was approved by the government during that last year, you would be able to deduct that amount when you file your taxes with the government. All products that are eligible for tax credits for residential energy efficiency are labeled with an Energy Star certification.

How To Apply For Federal Tax Credit

When you file your taxes, make sure to fill out form 5695. This form can be applied only to residential properties.

Download form 5695
Instructions for Form 5695

How Solar Rebate Works

Solar rebates work differently than tax credits. In fact, rebates can help you can get cash back into your hands sooner! While there are no federal rebates for energy-efficient purchases at this time, many state governments, local governments and utility companies offer cash rebates for the purchase of energy-efficient products. Some manufacturers offer specials and sales that make it easier to power your home with renewable energy.

How to Apply For Solar Rebates

The solar rebates vary from state to state, and the actual offer updates frequently. To find out what discounts available to you, please reach out to one of our representatives at 1-888-666-3699 or complete the inquiry form.

Reasons Why Now is the Time to Go Solar

Posted on September 20, 2019 by Cailyn

Solar energy is the wave of the future – not only because of its undeniable environmental benefits, but for its financial ones as well. Federal and state incentives will be decreasing at the end of 2020, making today the best time to invest in solar energy. If you’re looking for a way to save money while eliminating your carbon footprint, then now is the time to go solar!

What is Solar Energy?

Solar power is harnessed energy from the sun that is converted into thermal or electrical energy. It’s the cleanest and most abundant resource in the world because sunlight is natural and replenishable. Fossil fuels, like coal and oil, are finite and harmful to the atmosphere due to their contribution to the greenhouse effect.

Why Should I Go Solar?

It’s environmentally friendly: As previously mentioned, sunlight is the cleanest source of energy due to its natural abundance. Solar energy has virtually no environmental impact and reduces carbon emissions, ultimately improving air pollution. Green energy is also more self-sufficient than fossil fuel, since solar energy is generated nearly everywhere, whereas fossil fuels are mainly imported from other countries.

It’s a good investment: Contrary to popular belief, solar energy can save you money on your electric bill in the long run! Additionally, a study conducted by the Lawrence Berkeley National Laboratory in California concluded that buyers were willing to pay $15,000 extra on homes with solar panels [1]. If you’re worried about your taxes, don’t! Most states do not increase property taxes on homes using solar energy.

You’ll receive tax credit: The federal solar tax credit, also known as the investment tax credit (ITC), allows solar energy owners to deduct 26% of the cost of installing the solar system from their federal taxes. It is one of the most critical incentives for clean energy in the United States implemented by the federal government today. Since solar energy is growing across the country, the long-term stability of this policy has allowed businesses to lower costs gradually.

The federal solar tax applies to both residential and commercial systems – every user that owns their systems, as opposed to renting them, qualifies for this deduction. This credit can be applied to personal income taxes that would otherwise be payed to the federal government.

Why Now?

Residential and commercial solar energy system owners can deduct 30% of the cost of installation for systems that have begun construction through 2019. The ITC then decreases as depicted by the following timetable:

2020 – 26%
2021 – 22%
After 2021 – 10% permanently

Taxpayers will receive the most out of their tax credit if they invest in solar energy today! Solar energy is both a smart investment for your long-term financial goals and the best choice for the environment.

If you want to reduce your monthly bills, reduce your annual taxes and help improve the environment then solar energy may be right for you. Visit our website at momentumsolar.com or call 1-888-MOMENTUM for more information.

Solar Energy: Myth vs. Fact

Posted on August 13, 2019 by Cailyn

For some homeowners, solar energy can be an overwhelming subject – especially when you don’t have all of the facts. Does solar energy really save you money? What about when it comes time to sell your home? And is the maintenance manageable?

While there’s plenty of confusion circulating online, we’re here to break down the truth about solar energy. So, forget your Facebook timeline and ignore the Internet garbage, let’s debunk some of the most famous solar myths together!

Myth #1: Solar Lowers Your Home’s Value

Fact #1: Solar Dramatically Increases the Value of Your Home

Even though critics of solar say rooftop panels are an eye-sore, research says otherwise. Studies[1] show potential homeowners are more likely to put an offer down on a house that already has solar panels installed. This means your house may sell faster and for a higher price than the average home.

Myth #2: Solar Doesn’t Work in Certain Climates

Fact #2: Solar Works in Every. Single. Climate.

The one thing solar panels need to generate power is, as one might expect, sunshine. This means the heat emitted by the sun’s powerful rays are irrelevant when producing solar energy. Your solar panels can produce the same level of energy on the chilliest of winter and sweltering summer days (as long as there’s sunshine). Surprisingly, solar panels also work during cloudy or rainy days!

Myth #3: Going Solar Breaks the Bank

Fact #3: You Can Save Tons of Money After Going Solar

Besides saving the environment, you can rest easy knowing solar energy can also save you money on your monthly energy bill. The best part is, well-qualified homeowners can lower their energy bill through solar installation with no money out-of-pocket. If you’re not sold yet, keep in mind recent research suggests the average American home can save up to $100 a month with solar energy.[2]

Myth #4: Solar Panels = Too Much Work

Fact #4: Solar Panels Require Little Maintenance

Residential solar panels only need to be cleaned a few times a year. And if you’re not the tidying type, don’t worry! Cleaning simply entails washing dust and dirt off the panels with a standard garden hose. This easy task often takes less than 15 minutes (depending on the size of your solar panel system) and ensures you’re producing at peak levels!

The Cold, Hard Truth

Solar panels not only save you money, require little maintenance and work like new no matter the weather, but they’re also environmentally friendly. Solar energy is a clean, renewable resource, that has the power to positively impact our lives. According to Science Direct[3], “Solar energy is one of the cleanest forms of energy sources and considered as a green source of energy. Solar energy benefit ranges from low carbon emission, no fossil fuel requirement, long term solar resources, less payback time and other.”

The verdict is in: solar energy is great for your home, wallet and the environment! Click here to start your Momentum Solar project today.

[1] https://www.fastcompany.com/90375536/what-most-americans-are-looking-for-in-a-new-home-solar-panels

[2] https://energyinformative.org/solar-energy-pros-and-cons/

[3] https://www.sciencedirect.com/science/article/pii/S1364032114007734

6 Important Factors to Consider Before Installing Solar Panels

Posted on July 9, 2018April 28, 2020 by

There are multiple benefits to installing solar panels to your home — from reducing or even eliminating your energy bill to being an environmentally friendly alternative energy source and reducing your carbon footprint.

If you are considering installing a solar panel system on your home, here are a few things you should consider:

1. Financing Options

Installing solar panels on your roof is an incredible way to save money even though it’s a common misconception that it’s expensive. We have seen a significant rise in adoption, in tandem with solar energy becoming one the cheapest form of electricity worldwide — costs are consistently going down, which is great news for the environment today and for future generations. With the support of federal and local governments, there are several opportunities for tax incentives (like the solar investment tax credit) and additional state and utility incentives on a more local level.

2. Roof Condition and Angle

One of the many amazing benefits of going solar is that the panels are very durable and have a lifespan of 25 years or more. However, most asphalt shingle or composition roofs last about 20 years,¹ considering climate and weather conditions like snow, hail, and hurricanes affecting the lifespan. You must ensure your roof is in suitable condition prior to installing a solar system.

In addition to your roof age and condition, you’ll also want to consider its layout, material, and the direction it’s facing. Even if your roof is not directly receiving sunlight it does still receive some sunlight which allows you the opportunity to reap all the amazing benefits that come with going solar if your home qualifies.

3. Energy Consumption

You’ll also need to consider your energy consumption each month of the year and determine why some months are higher than others — for example, you’re probably running the air conditioner more in the summer which could explain why your electricity bill is higher during those months. Based on your energy usage and your home’s dimensions (including roof type, size, and shading), Momentum Solar experts can then help you design a solar system that best suits your budget and your energy use.

4. Location

The amount of direct sunlight is a very crucial factor to consider. More sunlight shining on your solar panels means more energy production — so if you live in the South or Southwest, you generally have a greater opportunity to produce more solar energy than if you were to live in the Northwest. Places like Island County, Washington (the least sunny county in the entire US) gets only about 60% of the solar radiation in comparison to a location somewhere in Southern California.² While you can still receive amazing benefits from installing solar panels in cloudy states, like the federal solar Investment Tax Credit (ITC) and other incentives that may be available in your state, you may need to install additional panels to make up for the lower energy production.

5. Rebate Eligibility

Rebates and tax credits can considerably reduce the cost of your solar panel installation, but you may be required to complete paperwork within a set amount of time. It’s important that you review your state and federal options with your solar company so that you have a better idea of how much you can save with solar.

The Federal Residential Renewable Energy Tax Credit provides you a 30% tax credit³ of the price of the system. The credit is available for a limited time, applying to systems that are installed before December 31, 2021. Multiple states additionally offer rebates and incentives, as do some utility companies.

6. Warranty Options

If you install a solar power system on your home, chances are your panels will perform efficiently and hassle-free for years. Nonetheless, issues can occur in rare situations, so it’s important to understand your product warranty coverage by your panel manufacturer. This will help to assure that your service and support needs will be covered if a problem ever occurs in the future.

The right solar panel system allows you to reap the benefits of cleaner, more affordable energy. Aside from the savings, think about the other advantages it has to offer in regard to reducing your carbon footprint to help support the environment.

Sources:
¹https://money.usnews.com/money/personal-finance/articles/2015/01/06/how-long-can-you-expect-your-roof-or-fridge-to-last
²https://www.washingtonpost.com/news/wonk/wp/2015/07/13/map-where-americas-sunniest-and-least-sunny-places-are/
³https://www.energystar.gov/about/federal_tax_credits

10 Awesome Solar Energy Facts You Should Know

Posted on June 20, 2018 by

10 Awesome Solar Energy Facts You Should Know

Solar energy is energy that radiates from the sun. The sun has produced this energy for over four and a half billion years. It is one of — if not THE — most important source of energy for all living organisms. Additionally, it is also a form of renewable energy unlike fossil fuels, which are nonrenewable and releases harmful emissions into the environment. Nonrenewable energy, by definition, are energy sources that cannot be replaced by natural means on a level that is equal to its consumption.

Here are 10 awesome facts about solar energy that might just surprise you:

1. It’s Now the Cheapest Energy Source in the World

Solar energy is a completely free and abundant source of energy, and is officially the cheapest form of electricity currently available.¹ This development completely debunks the common myth that going solar is expensive. Not only is it the cheapest energy source in the world, but qualified homeowners can save money every month when a system installed on their roof or property with affordable financial products and solar energy rebates and incentives.

2. It’s Among the Cleanest Energy Sources

A main benefit of solar energy is that it is environmentally friendly and one of the cleanest, most sustainable renewable energies available to us. Solar energy, also referred to as Photovoltaic (PV) Energy, has no impact on the environment. Solar power is one of the most common forms of renewable energy, as well as one of the most widely studied. It requires little maintenance and is relatively easy to install.

5 Other Clean Renewable Energy Sources:

Wind
Water
Geothermal
Bioenergy
Nuclear

3. There Is Enough Solar Energy to Power Millions of American Homes

The demand for solar in the United States is higher than ever before. The US installed 10.6 gigawatts (GW) of solar PV capacity in 2017, totaling 53.3 gigawatts (GW) which is, according to SEIA studies, enough to power 10.1 million American homes.² The total installed PV capacity is anticipated to more than double in the U.S. over the next five years, with over 15 GW of PV capacity expected to be installed by 2023.

4. It’s the Most Abundant Energy Source on Earth

Solar energy is the world’s most abundant resource. 173,000 terawatts of solar energy hits the Earth on a continuous loop — that’s more than 10,000 times the world’s total energy use.³ Switching to solar is the best way to combat any future energy crisis.

5. California Is the Leader of Solar Energy in the United States

California is America’s renewable energy pioneer, with over 11% of its total electricity⁴ coming from renewable energy like wind, solar, geothermal, biomass and small hydroelectric facilities. The Golden State has continually been the top state for total solar PV capacity, which shouldn’t come as a surprise.

6. It Helps to Preserve the Environment

While solar energy provides significant financial benefits — like electricity savings and increased property value — it also provides many substantial health and environmental benefits, which are equally as important. Additionally, switching to clean energy is a great option for homeowners that want to reduce their carbon footprint.

7. It Protects You from Rising Energy Costs

The electricity rates from your utility company are on the rise every single year, with data to back it up.

With the historical trend of electricity prices rising, you can protect yourself against soaring electricity prices by switching to solar and locking in predictable monthly rates. According to the U.S. Energy Information Administration (EIA), retail residential electricity rates have risen about 4% across the nation over the last 10 years.⁵

8. There Are Two Ways to Capture Solar Energy

Solar energy needs to be converted into solar power and ultimately, usable electricity. Solar panels do this by collecting the sun’s rays and converting the energy to electricity. There are two common methods used to harness the sun’s energy:

Solar photovoltaic systems are the most commonly recognized solar energy systems. Solar cells, also called photovoltaic (PV) cells, are encased in panels to convert sunlight directly into electricity. PV cells come in many sizes and shapes, ranging from 10mm by 10mm to 100mm by 100mm (the latter of which is the most common).
Concentrating solar power generates electricity from the sun by using mirrors and heliostats, which reflects sunlight onto receivers that are collected and converted into heat. “Thermal energy” as it’s called, can then be used to produce electricity.⁶

9. It’s Renewable

The energy from the sun is renewable, meaning it will never run out. Other energy source reserves, such as coal, petroleum, and natural gas, will eventually have its supply exhausted, which is even more reason to support the idea that solar is the energy of the future.

10. It’s Low Maintenance

Solar energy systems are incredibly durable and generally requires little maintenance. Most reliable solar panel manufacturers have a 20-25-year warranty. As an added benefit, if you lease or purchase your solar panel system from a financial provider, repairs and maintenance are the leasing company’s responsibility, not yours.

Sources:
¹http://fortune.com/2016/12/15/solar-electricity-energy-generation-cost-cheap/
²https://www.seia.org/us-solar-market-insight
³https://sos.noaa.gov/datasets/energy-on-a-sphere/
⁴http://www.energy.ca.gov/renewables/history.html
⁵https://www.eia.gov/todayinenergy/detail.php?id=20372
⁶https://www.seia.org/initiatives/concentrating-solar-powerfacebooktwittergoogle-plusinstagramlinkedin

5 Financial Benefits of Solar Panels

Posted on May 16, 2018 by

5 Financial Benefits of Solar Panels

Using solar energy to power your home is about as green as you can get. The benefits to the Earth are well known, but installing solar panels don’t just better the environment. They also provide significant financial perks for homeowners, business owners, and the economy.

Here are 4 financial benefits of solar energy:

1. It Stabilizes and Reduces Your Energy Bill

By installing a solar power system on your home or property, you can avoid the consistent utility rate hikes from traditional fossil fuels. The average annual electricity consumption for a U.S. residential utility customer is 10,766 kilowatt-hours (kWh), assuming an energy consumption of approximately 897 kWh per month.¹ For those living in freestanding single-family homes, the number was significantly higher.

At an average utility rate of $0.16 per kWh in New Jersey, that’s a savings of $1,722 in the first year if you purchase the system. And that doesn’t even count the income from the Solar Renewable Energy Credits (SRECs)!

You can also do a power purchase agreement (PPA) and lock in predictable energy costs over several decades that are significantly lower than your current monthly bill.

2. Solar Can Increase the Value of Your Home

An often-overlooked financial benefit of solar power is the resale value it adds to a home. After an initial investment, it will not only save you money from lowered electricity bills, but you could potentially see the resale value of your home increase.

Homebuyers are consistently willing to pay more for homes with solar energy systems that average about $4 per watt of PV installed.² This equates to about $15,000 more in value. While this is a long-term benefit that you won’t see immediately, it is one that you will see in the future if you choose to sell your home.

3. You Can Capitalize on Government Incentives and Purchase Options

Solar investment tax credits (ITC) are one of the driving forces behind the growth of affordable solar energy. There is a 30% federal tax credit available for purchased solar systems, which can be claimed by a home or business owner when filing their annual tax returns.

In addition to this lucrative tax credit, there are also financing and leasing options available that are making solar cheaper than ever before. The cost of solar has dropped about 1/3 since 2010 and is outperforming coal and gas. Today, you can even go solar with zero out-of-pocket expenses.

4. Utilizes Free Energy Source

Fossil fuels are nonrenewable energy sources and are risky, dangerous, and expensive to convert into usable energy. Sunshine, on the other hand, is a renewable energy source that is free. While the equipment needed to harness the energy is not free, the energy produced by the sun is. Solar energy is the most abundant energy resource on Earth and generates enough energy to power the world over 10,000 times, which can be continually used.³

5. Positive Return on Investment (Net Metering)

The Solar Energy Industries Association (SEIA)⁴ explains net metering as a billing mechanism that credits solar energy system owners for the electricity they add to the grid. It also provides substantial statewide economic benefits in terms of jobs, income and investment. Not only does net metering allow homeowners and business owners to generate their own clean, efficient electricity, but it also allows them to send the extra energy they produce during the day back into the grid. The extra energy builds a “bank” of credits with the utility company to use with the sun isn’t shining. This financial benefit becomes even more evident during the summer months due to longer, sunnier days.

Sources:
¹https://www.eia.gov/tools/faqs/faq.php?id=97&t=3
²http://newscenter.lbl.gov/2015/01/13/berkeley-lab-illuminates-price-premiums-u-s-solar-home-sales/
³https://sos.noaa.gov/datasets/energy-on-a-sphere/
⁴https://www.seia.org/initiatives/net-metering/

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Best Time to Go Solar

Posted on October 3, 2017 by

Best Time to Go Solar

Is There a “Best Time” to Go Solar?

Summer months have always been considered optimal for solar “output” or, how much electricity your solar system is producing versus what you’re using from the grid. The main reason for this is the fact that there are more hours of sunlight, so more solar power is produced overall. Since the sun is beaming for more hours during summer days, people often see a correlation between solar energy and summertime. The actual efficiency of each panel drops as temperatures rise, though, and it’s been proven that panels perform better in cooler temperatures. The reason your system may produce less during autumn and winter months is simply because there are less hours of sunlight for your system to soak up.Don’t get us wrong – we still live for the summer months. Because the days are longer, the system often OVER produces energy during this time, so any extra energy is pushed back into the grid to build a bank of credits with your utility company — this is called net metering. You’ll be able to easily use these credits when your system doesn’t produce as much solar energy during shorter days. There really isn’t a “right” or “wrong” time to make the switch to cleaner, more affordable energy – just keep in mind that depending on the time of year, inspections and installations may be halted due to inclement weather.About Momentum Solar
Momentum Solar, founded in 2009, is a top solar contractor and Inc. 500 fastest-growing private company that employs over 600 people nationwide. The company is committed to making solar panels affordable, providing savings for their clients, and helping the environment. Their team of in-house professionals has an extensive wealth of knowledge in designing customized solar power systems for both residential and commercial properties. Momentum Solar manages the entire customer lifecycle from the sale to design, engineering, permitting, installation and activation of the system to make the process simple for homeowners and business owners.For any media-related inquiries, please contact:
Marketing Department
marketing@momentumsolar.com
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