What’s New with 2022 Tax Credits?
On August 16, 2022 the Inflation Reduction Act was passed. It has some great news for solar. Homeowners can now claim 30% (up from 26%) for solar. Plus, battery backup systems are now also eligible for 30%.
Non-Profits/Churches are now eligible for ‘Direct Pay’ grants/tax credits equal to 30% – 60% of the solar energy system price. The rules are complex, but the benefits are obvious! A solar broker can assist your church to maximize savings (and quickly steer those savings towards the mission of the church instead of the utility company).
Is it worth getting solar?
In central Florida solar is worthwhile for about 30-50% of homeowners. Things that make it not worth getting solar include,
- Bad/old roof (less than 2 years roof life left)
- Too much shade from trees or other buildings
- Not enough South/East/West roof space (due to dormers, vents, skylights, etc)
- Planning to sell home in the next year
Do solar panels last forever?
No, pretty much anything that sits in the sun is going to deteriorate. The good news is that solar panels don’t have any moving parts and they don’t have any fluids, therefore they don’t need any service except for a light cleaning if obstructed (leaves, mold). Good quality panels will very slowly lose power output – producing 80-85% of original power after 25 years on your roof. Panels can continue producing for 50+ years.
What are the main disadvantages of solar?
Solar may not save you money on your electric bill when not properly designed. For example, a tree that doesn’t block sunlight to the panels today could grow and significantly reduce the solar panel power output. If that’s a trophy landscape tree that you’re not willing to cut back, then the panels shouldn’t be placed in that area.
Another disadvantage is keeping the panels clear of debris. In northern states snow is an issue, but in central Florida, not so much.
Payback is a potential disadvantage of solar for your home. For cash buyers that put $20-30,000 on their roof, and then plan to move, it is hard to get that investment back in the first few years. Fortunately, most people finance solar through banks and leasing companies that now make the contract easily transferable to the home buyer. The buyer gets a low payment and the seller gets about 4% more for their home (CNBC, Money magazine, Zillow) It’s a win-win.
How long does it take for solar panels to pay for themselves?
In many cases, solar panels on homes can pay for themselves in the first month. If payback is important to you, then it is helpful to think of electricity as a commodity like gasoline for your car. For the car, you look at two gas stations and simple buy from the station with the lower price. Electricity from the utility or from solar on your roof is the same thing, why not buy it from the cheapest (and greenest source).
Solar companies use tax credits, super low interest rates, and financing to make buying solar easy and usually $0 down (therefore no ‘payback’). Simply transfer the monthly payment you send to the utility company to your lower solar payment, and pocket the difference. There are a lot of variables involved to be confident you are getting a great deal, a solar broker can help with this.
Is natural gas cheaper than solar?
For your home, in 2022 natural gas has increased significantly and is now equal to, or slightly more expensive than, solar electric panels for home heating and cooking. At the utility scale (power plants), solar has recently become cheaper than natural gas. In Florida solar pool water heater panels are much cheaper than heating a pool with natural gas.
Of course from an environmental view, solar is far better than gas.
Are solar panels a ripoff?
When put on the right home solar panels are not a ripoff. However, some homes are not good candidates due to shade, roof condition, or wrong design. In these cases solar can be a ‘ripoff’.
Using a solar broker can help you evaluate if solar is right for your home and maximize your benefits if solar is a good decision.
Please reach us at Info@SEsolarBrokers.com if you cannot find an answer to your question.