If You Believe These Solar Myths Youre Not Alone.
There’s a lot of information out there about solar energy. You’ve probably heard some of it via radio and TV, the internet and those guys pressuring you to buy in the big box stores. The problem is a lot of the noise is just that – noise. So let’s get to the truth. Then you can make an informed decision about whether solar makes sense for you.
Myth #1: The 30% Federal Investment Tax Credit is gone.
FACT: The 30% Investment Tax Credit (ITC) is alive and well. The Federal Government is a big fan of renewable energy. They understand our dependence on fossil fuels has to end. It’s non-renewable, bad for the environment and darned expensive! They want you to switch to solar. So how does the tax credit work? Once you buy solar, 30% of the total cost of the entire solar system can be taken off your taxes. Why would you ever walk away from that deal? But the 30% credit won’t last forever. The ITC was set to expire December 31, 2016, but has been extended. The credit allows you to deduct 30% of the cost of your entire solar system on your taxes until 2019, after which it drops down to 26% in 2020 and 22% in 2021. After 2023, the investment tax credit comes to an end for residential solar systems. Combined with a reduction of electricity costs of up to 50%, this is a windfall that doesn’t come around every day. We recommend you consult a smart tax professional for more detail.
Myth #2: I can't afford solar.
FACT: There’s a myth that solar is too expensive for the average homeowner. The reality is with the right financing program, you literally swap your expensive utility bill for a bill that’s up to 50% less. And to ensure you get a financial strategy that works perfectly for your family, work with a solar company like Baker that has strong relationships with a range of financing partners. You want options so you can finance, lease or buy outright and benefit from no money down. At the end of the day, you want to feel confident about choosing to go solar and your return on investment for years to come.
Myth #3: There's no more Net Energy Metering.
FACT: The decision to uphold net energy metering (NEM) was made early 2016 and remains in force. If you have a solar system and it produces more energy than you use, you earn credits for excess power that flows from your system to your electricity grid. You can use those credits to offset any energy you might have to buy from your utility. Just another reason solar is a smart choice and money in your pocket.
Myth #4: You can't produce solar energy on a cloudy day.
FACT: Although not as effective as on a sunny day, producing 10-25% of its regular capacity, solar energy can still be produced on a cloudy day. For example, Germany, which gets as much sunshine as the state of Alaska, is the world’s top solar panel installer, producing 31% of the world’s renewable energy. Just think what your home based in Southern California can produce!
Myth #5: A solar system will raise my property taxes.
FACT: Despite the fact that your property value will increase, there is California legislation that prevents your property taxes from increasing as a result of installing a solar system. The California Revenue and Taxation code ensured this decision in section #73. And here’s more good news: For every $1,000 that has been saved in electricity costs, your home’s value rises $20,000 (U.S. Department of Housing and Urban Development). Celebrate that!