You can purchase a solar power system by paying cash upfront or financing it. When you purchase a solar panel system:
With a leased system, someone else purchases the system and installs it on your roof. When you lease a Solar Panel System:
In a typical Power Purchase Agreement (PPA) a developer pays to install a system on your property at little to no cost to you. The developer sells the power generated by the system to you at a rate that is typically lower than the rate you were paying. This lower electricity price offsets the more expensive electricity you purchase from the utility.
When you participate in a PPA:
So, bottom line for purchasing, leasing and PPAs:
Unity Solar can show you the advantages of all options available and help you choose the one that is right for you.
Once you install a system with Unity Solar, we assure you will receive the incentives that are due to you. Here are some of the more common incentives, but there are probably more that are specific to your location:
The solar Investment Tax Credit (ITC) is a 26 percent tax credit for solar systems on residential and commercial installation projects that begin in 2020. This allows you to deduct 26% of the total cost of your solar installation — dollar for dollar – from your federal taxes.
However it is important to act quickly to take advantage of ITC credits. As of this writing, the 26% ITC will be reduced to 22% for projects that begin construction in 2021 and drop to 0% for residential and 10% for commercial from then on. For example, a $7,800 tax credit at 26% in 2020 will be reduced to a $6,600 tax credit at 22% in 2021 and will – unless the program is extended — disappear entirely in 2022.
While technically not an incentive, net metering does reduce the overall cost of your system. Many states offer a form of net metering. Here’s how it works:
Whenever your solar installation produces more electricity than you need at that particular moment — say during the day when no-one is home or business or little electricity is being used — your electric meter will run backwards as the excess electricity is pushed back to the grid. Then, at night at other times when your system isn’t operating at peak efficiency, you will in effect receive that excess electricity back at no cost. And, in the off chance you produce more electricity during a billing cycle than you use, your utility company will credit you for it on your next bill.
Without net metering, any excess electricity produced cannot be captured for later use or bill reduction.
An SREC (Solar Renewable Energy Certificate) is a certificate that represents energy produced by a home or business owner’s solar installation. A home or business owner enrolled in an SREC program earns one SREC for every 1000 kilowatt hours (kWhs) – the equivalent of one megawatt hour (MWh) — produced by system. These SRECs can be sold to utilities, which use the certificates to serve as proof that they have either produced renewable electricity themselves or paid someone who is producing renewable electricity. This proof is required by the various states to demonstrate the utility is dedicated to reducing its carbon footprint.
For example, a typical size five kilowatt kW solar installation will produce five to eight MWh of electricity per year, and generate one SREC for every MWh. Since an SREC can be worth over $300 in certain states, SRECs can dramatically lower the overall costs of installing solar panels.
It depends on the available roof space you have, the amount of shading on the roof, and the orientation of the roof. Click Here and we can do a quick assessment for you.
You will always be connected to the grid and there will always be a minimal monthly connection fee from your utility company. However, the advantage of solar energy is that you can generate it yourself (well, actually, the sun generates it, but you know what we mean). Your home or business will use this electricity to power your appliances and electronics. If your home or business needs any extra energy, it will draw that from the grid.
But, with solar there is an upside to the grid connection as well, and that is called “net metering”, which we described above. Certain states and utility companies offer net metering as a form of incentive. Without net metering and being tied to the grid, you can’t be credited with the extra power your system generates.
Energy storage technology is evolving quickly. Contact us for the latest offerings.
Because you will still be connected to the grid, you will have two electric bills even if your solar array produces more energy than you consume. You will get one bill from your utility company and another for the solar. The goal of course is to have the total of both bills be less than your current bill.
One to four days, depending on the complexity of the project. Then after any required local inspections, your system will be activated.
You can pay off the solar system when you sell your home, or you can transfer it to the new home or business owner. Many people use the value of the solar array as a negotiating tool when selling.
A properly installed and attractive solar array can increase the value of your home, and set it apart from the competition in a competitive real estate market. It will definitely affect your assessment but many states allow this value increase to be tax-neutral.