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Domestic Content Bonus For Commercial Solar Projects

Domestic Content Bonus Makes Commercial Solar Even More Affordable

The Domestic Content Bonus in the Inflation Reduction Act: A Boost for Commercial Solar Projects

Introduction

The Inflation Reduction Act (IRA), passed in 2022, has had significant ramifications for the renewable energy industry, particularly commercial solar projects. One of the key components of the IRA that directly impacts the commercial solar sector is the Domestic Content Bonus—an additional financial incentive for commercial solar installations that utilize domestically manufactured components. This provision aims to bolster U.S. manufacturing, create jobs, and promote the use of American-made products in renewable energy projects. For businesses and commercial solar companies, this bonus provides an opportunity to maximize returns on solar investments while supporting the growth of the domestic supply chain.

In this article, we explore the details of the Domestic Content Bonus outlined in the IRA, its eligibility requirements, and how it impacts commercial solar energy projects.

The Basics of the Domestic Content Bonus for Commercial Solar

Under the IRA, the federal Investment Tax Credit (ITC) and Production Tax Credit (PTC) are major financial incentives available to renewable energy projects, including commercial solar installations. The Domestic Content Bonus provides an additional percentage point boost to these credits if the project meets specific requirements for using U.S.-produced materials.

Breakdown of the Tax Credits

The ITC is a federal tax credit available for the installation of solar energy systems, allowing taxpayers to deduct a percentage of the total system cost from their federal taxes. For commercial solar projects, the base ITC is 30%, which can be increased with specific add-ons such as the Domestic Content Bonus. For systems placed in service after 2022, the bonus provisions are as follows:

  • Domestic Content Bonus: An additional 10% credit for projects that meet domestic content requirements, bringing the total ITC up to 40% if all criteria are met.

For projects that opt for the PTC instead of the ITC (generally for large-scale commercial solar installations), the Domestic Content Bonus increases the PTC rate by 10%.

Understanding the Domestic Content Requirements

The Domestic Content Bonus incentivizes the use of U.S.-made materials and components in the construction of commercial solar power projects. To qualify for the 10% bonus on top of the ITC, a commercial solar project must meet the following criteria:

1. Steel and Iron Products

  • 100% Requirement: All steel and iron used in the solar installation must be produced in the United States. This includes products like racking systems, support structures, and frames that make up the primary structural elements of the commercial solar energy system.
  • Exclusions: Fasteners and other small components that are not part of the main structural steel and iron do not have to meet this requirement.

2. Manufactured Products

  • 40% Requirement for Commercial Solar Projects: At least 40% of the total cost of manufactured components used in the solar project must come from products that are produced in the United States. This percentage requirement applies to commercial solar installations until 2024.
  • Increasing Requirements Over Time: After 2024, the domestic content requirement for commercial solar energy projects will increase to 45%. It will then incrementally rise to 55% by 2026.
  • Eligible Components: Examples of manufactured components include solar modules (panels), inverters, trackers, and other equipment that contribute to the commercial solar power system.

To verify that the commercial solar project meets these requirements, developers must provide documentation showing the origin and cost of all components, ensuring compliance with the "Made in the USA" guidelines set forth by the IRA.

What Qualifies as 'Domestic' Under the IRA?

The "domestic content" requirements have specific definitions to ensure clarity on what qualifies as U.S.-produced:

  • Steel and Iron: The requirement for steel and iron is straightforward; they must be entirely produced in the U.S., from the initial melting stage to the final product.
  • Manufactured Products: For manufactured components to qualify, at least 40% of the total cost must be attributable to U.S. production. This includes manufacturing activities like assembling, processing, and finishing. The cost calculation considers direct labor, materials, and overhead involved in producing the final product within the United States.

How the Domestic Content Bonus Impacts Commercial Solar Projects

For commercial solar companies and business owners, the Domestic Content Bonus can significantly improve the financial viability of a commercial solar project. Here’s how:

1. Increased Tax Credit & Reduced Payback Period

By meeting the domestic content requirements, commercial solar power projects can receive up to a 40% tax credit through the ITC, a substantial increase over the base 30%. This boost reduces the payback period, increases return on investment (ROI), and helps business owners see more immediate financial benefits from their commercial solar energy system.

2. Alignment with Corporate ESG Goals

Many corporations are setting environmental, social, and governance (ESG) goals, and opting for U.S.-made components for commercial solar installations aligns with these objectives. Supporting domestic manufacturing, reducing carbon footprints, and stimulating the local economy can be valuable for corporate branding and sustainability reporting.

3. Potential for Job Growth & Local Economic Development

The push for more domestic content encourages growth in U.S. manufacturing jobs, supply chain development, and investment in American-based commercial solar energy companies. This economic impact can be significant for local communities and can make a compelling case for commercial solar adoption.

Challenges & Considerations for Compliance

While the Domestic Content Bonus offers financial benefits, meeting the requirements can present certain challenges for commercial solar contractors:

1. Supply Chain Limitations

Sourcing U.S.-made components can be challenging due to current supply chain constraints. Not all components may be readily available in the U.S., and those that are may come at a higher cost compared to imported alternatives. Commercial solar developers will need to carefully plan procurement to ensure compliance with the domestic content requirements.

2. Cost vs. Benefit Analysis

In some cases, the cost of using U.S.-made components might outweigh the financial benefits of the additional 10% tax credit. It’s essential to conduct a detailed cost-benefit analysis to determine if aiming for the Domestic Content Bonus is financially advantageous for the commercial solar installation.

3. Documentation & Compliance

Maintaining detailed documentation and cost breakdowns is crucial for proving compliance with the domestic content requirements. This adds an administrative burden to project development and may require additional expertise in tax law and regulatory compliance.

Case Study Example: A Commercial Solar Project

Let’s consider an example of how the Domestic Content Bonus might impact a commercial solar project:

  • A business installs a commercial solar energy system with a total cost of $500,000.
  • The standard 30% ITC provides a tax credit of $150,000.
  • If the project meets the domestic content requirements, an additional 10% bonus is applied, providing an extra tax credit of $50,000, bringing the total ITC to $200,000.
  • This increase in tax credit reduces the net cost of the project and shortens the payback period, improving the overall financial return of the investment.

By leveraging the Domestic Content Bonus, the business not only maximizes its federal incentives but also supports the growth of the U.S. commercial solar manufacturing sector.

Conclusion

The Domestic Content Bonus in the Inflation Reduction Act represents a significant opportunity for commercial solar contractors, developers, and businesses to enhance the financial returns of their solar projects. By encouraging the use of U.S.-made materials, the IRA supports domestic manufacturing, job growth, and local economies while promoting the transition to renewable energy.

For commercial solar installations, understanding and leveraging the Domestic Content Bonus can lead to greater financial savings, alignment with corporate sustainability goals, and contributions to the U.S. manufacturing sector. However, it is essential to carefully evaluate the feasibility of meeting domestic content requirements, considering supply chain availability, cost implications, and compliance needs.

As the domestic content percentage requirements increase over the coming years, businesses and commercial solar companies will need to stay informed and adapt their procurement strategies to take full advantage of these enhanced incentives.

References:

  1. U.S. Department of Energy: Inflation Reduction Act Overview
  2. SEIA: Inflation Reduction Act Provisions for Solar
  3. National Renewable Energy Laboratory (NREL): Impact of Domestic Content Requirement
  4. Internal Revenue Service: Guidance on the Domestic Content Bonus Credit
  5. Database of State Incentives for Renewables & Efficiency (DSIRE): Texas Solar Incentives
Commercial Solar Company - 09/29/2024
The Top Benefits of Solar Panels

Why Go Solar? The Top Benefits of Solar Panels You Should be Aware Of!

Why Consider Solar Energy? It's Time to Switch!

Do you frequently consider installing a solar panel system to reduce electricity costs?

Don't give it another thought! The future belongs to Solar Energy.

The environmental and economic savings are the main benefits of switching to solar power. You may reduce your carbon footprint and utility costs and generally lead a more sustainable lifestyle by switching to a greener, cleaner energy source.

Since solar energy doesn't need fuel and doesn't depend on other resources like water or wind, it is widely recognized as an infinitely renewable energy source that doesn't emit CO2 or other gases. It is one feature that, from an environmental standpoint, makes it one of the most intriguing energy production systems.

Why Go Solar?

Solar energy has enormous advantages for businesses, organizations, and property owners. Companies and homeowners across the globe can benefit from a solar energy company. But when deciding whether to go solar, knowing the benefits is helpful.

Remember that a solar installation company's quality greatly influences the durability and effectiveness of a solar panel system. You must use skilled solar panel installers to ensure your system is set up properly.

Financial Benefits of Solar Power

For most individuals, the financial benefits of installing solar power systems are the primary motivation for making the switch. In addition to lowering your carbon footprint and saving money on energy costs, renewable energy solutions offer considerable long-term savings.

1. Avoid Rising Energy Costs

Electricity costs have been steadily rising, impacting households and businesses alike. Installing solar energy systems protects you from these escalating costs, as solar power allows you to generate your own electricity. This shields you from utility rate hikes and ensures long-term savings.

2. Reduce or Eliminate Energy Bills

By installing solar panels, you can significantly reduce, or even eliminate, your monthly electricity bills. A solar panel installation can last for more than 25 years and provide free electricity, helping you avoid unpredictable energy costs.

3. Maximize ROI

Solar energy provides a return on investment (ROI) that can surpass many traditional investments. Over the lifespan of your solar power system, you can expect a significant return, sometimes as high as 20% or more, by cutting down electricity costs and taking advantage of government incentives.

4. Increase Home Value

Homes equipped with solar panels typically have higher market values and sell faster than those without. A professionally installed solar energy system boosts a property's appeal and can enhance its resale value.

Environmental Benefits of Solar Energy

While financial savings are a great incentive, the environmental impact of switching to renewable energy is another major reason to go solar. Solar power helps reduce reliance on fossil fuels and cuts down greenhouse gas emissions.

Offset Carbon Emissions

By switching to solar energy, you reduce the demand for carbon-emitting energy sources like coal or natural gas. Installing solar panels on your property reduces your carbon footprint and contributes to a cleaner environment.

Commitment to Sustainability

By investing in solar power, you signal a strong commitment to sustainability. Solar energy is a reliable and renewable resource, making it a key player in building a sustainable future.

Other Benefits of Going Solar

Boost Local Economy

Installing solar power systems helps create local jobs and boosts the economy. The growth of the solar energy sector has led to job creation in the renewable energy industry, providing economic benefits at both local and national levels.

Power During Outages

Solar power systems with battery backup can provide electricity during power outages, ensuring that your home or business remains operational when the grid goes down.

Why Do You Need a Solar Power Consultant?

(Ask our Solar Power Company for professional advice.)

A knowledgeable solar energy company can help you navigate the process of switching to solar, from designing your system to installation. A qualified consultant will analyze your energy needs, help you understand the benefits of going solar, and ensure you maximize the return on your investment.

Begin Your Solar Journey with Emerald Sun Energy

At Emerald Sun Energy, we are committed to helping people and businesses transition to a cleaner, more sustainable future. Our solar panel experts are ready to assist you with all aspects of solar installation, ensuring you receive the best service and long-term benefits.

References:

  1. https://www.energy.gov/energysaver/planning-home-solar-electric-system
  2. https://www.solarreviews.com/blog/how-much-do-solar-panels-save
  3. https://www.cleanenergyauthority.com/solar-energy-news/solar-panel-savings-092317
  4. https://www.nerdwallet.com/article/finance/solar-power-benefits
  5. https://www.forbes.com/home-improvement/solar/solar-energy-benefits/
Solar Company - 07/01/2022
Henery-After

How Many Solar Panels Are Required For A Typical American Home?

Solar panels, or what we know as PV panels, are extremely useful in converting accessible solar energy into consumable power using heat-transformation generators. Across the United States of America, many houses have a solar panel sheet installed either on the adjacent walls or their roofs. Even if you consider buying a new home, the real estate dealer will give you access to solar panels in your new home because such properties have many benefits, both for the homeowners and the environment. 

The sheer functionality of solar panels is to shift our society’s reliability from fossil fuels to renewable power resources that are important for going green and saving overall power expenses. They also are a solution to reduce carbon footprint and greenhouse gas emissions that have been continuously deteriorating our environment. Most homeowners prefer using solar panels for their routine power requirements because of two factors:

  • It helps them save on their power consumption units and the following expenses, making it an economic workaround.
  • It improves the overall value of the property, especially during a resale. 

How To Calculate How Many Solar Panels Do You Need

The number of solar panels that a household needs depend on numerous factors; let’s have a look at what all you need to ponder upon before investing in solar panels and how one must exactly move ahead - 

  • Average energy requirements - If you consider seeking suggestions from solar power companies, you will get to know the nitty-gritty of having solar panels in a household. First and foremost, you should evaluate the power consumption needs of your family and how you manage every sort of energy requirement in and around your premise. Based on that information, you can estimate the number of solar panels necessary for you. To arrive at that number, homeowners can look at the monthly power bills and notice the units consumed on average.
  • Current energy use in Watts - While accessing the past power bills, you can get an accumulated number of energy watts consumed per month. These readings are essential in calculating the required number of solar panels for your home. Though the numbers would vary from month to month, it is feasible that you take out the daily usage figures and sum them up for a precise number for calculating your solar panel needs. In addition, counting the current energy watts for a household can also be done with the assistance of the municipal electricity board, as they have clear and precise deets.
  • Climate you have in your city/area - The amount of solar energy that a panel can produce is directly related to the amount of sunlight they receive. Therefore, you must consider the climate factor of your region before installing numerous PV panels. For instance, if your residence is in a place that receives peak sunlight for most of the day, installing a maximum number of solar panels will be a great opportunity. You can then work on an approximate number of solar hours and how many energy units you require daily or monthly.
  • The efficiency of solar panels you are considering - Not every solar panel is of the same efficiency, especially if you consider residential solar panels vs. industrial solar panels. Their efficiency relies on their ability to convert sunlight into solar power, which matters the most. Additionally, homeowners generally go with those solar panels that do not get rusted easily and are highly durable. Thus, the more your solar panels can produce, the more efficient they possess.
  • The physical size of solar panels - Last but not least, you must know the panel's physical measurements to calculate the number of solar panels that your home requires. For an oddly shaped roof that has less surface area and receives sunlight, one should purchase smaller solar panels. You must install less extensive solar panels on bigger roofs to convert optimum solar power. A couple of highly-efficient solar panels could also help you effectively create the potential solar energy, so make your decision wisely after considering such factors. 

Number Of Solar Panels Required For A Typical American Home

For an average American household, the number of solar panels usually lies between 20-and 25. This number could vary depending upon your family's power consumption and the region where you stay. Although most American homes get enough sunlight exposure to produce solar energy, you can also install a couple of grounded solar panels on plain surfaces where sunlight is adequate. 

Do You Want To Install High-efficiency Solar Panels?

Technically, one should survey the efficiency parameters of a solar panel before investing in it. Installing highly-powered solar panels is great only when you require maximum power output and high consumption. Not that it matters the most for some homeowners, but it does involve a huge investment cost in the initial stage. High-efficiency solar panels have an implied installation cost that is generally more than the standard installation cost; thus, it becomes a lesser preferred choice for those who do not love to spend recklessly.

Takeaway…

Are you interested in investing in renewable solar power? Emerald Sun Energy is your top solar contractor in Orlando. Our solar power company in Orlando takes pride in assisting our clients with efficient, durable, and quality-driven solar power panels designed to produce maximum power. You can also request our experts to take an on-site tour for inspection before getting the panels installed. Our team of professionals has adequate expertise in drawing consumption analysis of your household. We can then provide you with reasonable quotes. To book your service, call Emerald Sun Energy today!

Solar Contractor - 05/10/2022

Can I Really Get Solar Energy for $0 Down & $0 Out of Pocket

You Can Get Solar Energy For No Money Down and No Money Out of Pocket, but it’s not free.

In this article, we are going to dive into what exactly $0 Down $0 Out of Pocket means in regards to adding solar panels to your home.  If you are shopping for solar panels in Orlando or Florida then you have inevitably have heard the Phrase “Get Solar Energy for $0 Down and $0 Out of Pocket”.  This claim is designed to get you excited about adding an energy efficient product without any money involved. That might be where there begin to be some confusions. Here are some simple explanations to this statement as well as some guidelines to follow to get your best deal on solar panels.

Check out other great videos to help you understand more about solar energy and Solar Companies Youtube – Emerald Sun Energy Channel

What does $0 Down (NO Money Down) mean? First off it is NOT FREE.  You are buying something. However, if you are able to qualify for available financing then there is No Money Down as the entire purchase can be funded because many of the financing options available for solar companies do not require any money down.  Hence the entire solar project will be funded by the financing company.

What does $0 Out oF Pocket (No Money Out of Pocket) mean? This statement may be the one that causes the most confusion because it often leads people to believe that it is free.  Again it is NOT FREE, you are buying something. However, if you qualify for available funding it is true that you will have $0 Out of Pocket. The easiest way to understand this is to look at the example below.  What it points out is purchasing a solar panel system for your home will not affect your budget. Meaning you can use the money you already are paying the power company to instead pay for your solar power system that will improve your home’s value and convert a variable expense (power bill) into a profitable asset (solar panel system).  In most cases, you will actually be cash positive depending on which financing option you choose. So you can purchase your system with the money you already spend because your solar panel financing payment will be less than the amount of money you save on your power bill by switching to solar.

What do I need to do to qualify for this solar program?  Simply call Emerald Sun Energy a local Florida Solar Company located in Orlando and serving all of Central Florida, We will first do a customized energy consumption analysis to determine the size of the solar panels system you need.  We will then draw out a solar panel spec drawing so you can see how the panels will look on your roof. Then you can choose the financing option that best meets your needs and fill out the online instant approval application, we will have a decision within minutes of application.  The basic qualifiers are you will need a 680 credit score or greater to qualify. The financing company will also be looking at your debt to income ratio to determine if you are a good candidate for a solar energy system. Usually, a debt to income below 45% with a household income of $50,000 is able to be approved.

Example of how $0 Down $0 Out of pocket looks like:

With the advanced additions of Solar Energy Financing Florida Homeowners can get solar for No Money Down and No Money Out of Pocket

With the advanced additions of Solar Energy Financing Florida Homeowners can get solar for No Money Down and No Money Out of Pocket

First, we must figure out the amount of money you will be saving on your power bill every month to find out how much money you have available on a monthly basis to pay for the system.  In the above example of an actual solar customer, before they started using solar there power bill was $231 per month and after they switched to solar energy their power bill dropped to $29 per month.  Which is a monthly savings of $202 per month? So that means so long as we have a financing option that requires less than a $202 a month payment then we will be able to provide solar for $0 Out of Pocket because we are just redistributing money you are already spending to convert an expense into an asset.

Next, we will examine the financing options offered by the above Orlando Solar Company.

In the above example, you can see the available financing options for the customer where a 12 Year or 144 payments of $199 which is $3 less then they would pay the power company.  Or a 20 year (240 payment) option would be $162 per month essentially saving customer on average $40 over what they would have paid the power company. That is a yearly positive cash flow of nearly $500 plus they improved the value of their home and reduced their carbon footprint.  WOW!!

Please keep in mind in the above example we are using Net Sales Price which is the price of the Solar Panel System after you received your 30% Federal Tax Credit.  If you somehow do not qualify for the tax credit you will still be able to get the system for no money out of pocket but it would be only on the 20-year option that would accomplish this.  Either way, you are purchasing an asset using someone else’s money to pay for it. This is one of the biggest ways wealthy people keep and grow their wealth. You can see more about that is this video “Solar Energy is a Better Investment Than The Stock Market”

As you can see from the explanation and example provided $0 Down $0 Out of Pocket isn’t free but it is a tremendous opportunity for homeowners to be able to add Solar Energy to there home without affecting their monthly budget.  Please keep in mind that the 30% Federal Tax Credit expires at the end of 2019 so your window for taking advantage of such a great opportunity is closing. There will be a couple of years of reduced tax credits but you will have missed out on the biggest one, while you can do it without affecting your budget.

Solar Companies - 09/20/2018

Picking The Right Solar Company is More Important Than Price!

Picking The Right Solar Company is More Important Than Price!

As we are entering the great gold rush of Solar Energy it is important to pick the right company to do the job.  Right now Solar Energy is such an amazing opportunity when you factor in great low financing rates with the Federal 30% tax credit (due to expire in 2019) and rising energy costs (power companies raise their rate by an average of 4% a year), there has never been a better time to switch to solar.  It is so good right now that you can literally convert a variable expense into a profitable asset all the while using the money you are already spending on your power bill to do it. If you qualify you will be able to incorporate solar power for $0 Down and $0 out of pocket. I didn’t even mention the environmental green energy benefits that solar can provide our environment over the current energy sources.

The biggest problem I find is that the general homeowner doesn’t have a strategic plan for what solar company they should use to install their solar panel system.  As a good consumer, their default position is to get the best price possible. This is the first huge mistake. Don’t get me wrong I am a savvy consumer and choose to do my due diligence as to not overpay for the products and services I desire.  It is a mistake because you often open yourself up to less reliable companies that usually use less than desirable equipment and take cost-cutting installation strategies to reduce their cost.

I believe the proper process for choosing a solar company should be multifaceted with the price just being one of the variables to consider.  I believe the most important variable should be the reputation of the Orlando Solar contractor that is going to install your solar panel system. I can’t tell you how many phone calls I get from solar owners who need service or an uninstall/reinstall for a roof change that can’t get in touch with the solar company that installed there system.  Sometimes it’s because the company just doesn’t get back to them but most often it is because they have gone out of business.

Solar is booming so why are so many installers going out of business?  Mainly they are underbidding the projects and not providing any resourceful customer service.  This then generates poor reviews and reputation which is a death sentence for any business. These people are then just left flapping in the breeze and needing a new solar company that is going to charge them retail rate on any work that needs to be done as they did not profit from the original installation.  So customers who are in this situation end up paying more than someone who chooses the right company from the start even though they may pay a little more today it will save them a ton tomorrow. Especially when you factor in the headaches that are caused when you can’t get in touch with your original solar installer.  That is not to mention that many of them will cut costs on there installation process meaning you may have significant maintenance, for example, if they do not take the time to tie the solar panel racking system into your home’s Truss frame, you will be exposed to the potential for your system to leak.

The beautiful thing about the solar industry today is that you can get a great system from a great company and reduce your energy cost while improving the value of your home all with $0 out of pocket.  What I am getting at is getting the right company and the right solar equipment is more important than getting the best price. Because paying the power company in the current model is the worst deal out there and that is why these bottom feeders are able to prey on inconspicuous homeowners.  The use the homeowners desire to get the best price all the while setting them up for a higher long-term expense on their solar panel system. Don’t get me wrong this is still a better deal than paying the power company but why not just simply get the best deal by factoring in all of the important variables.

First is to make sure that you are getting the right equipment for the system you need.  Many companies that are trying to sell you a system are doing so by not including important equipment that will make your Solar panel system more efficient, effective and will save you a lot more money down the road.  You must make sure you get a system with power optimizers or microinverters. These devices will help your system to perform at the highest levels. I prefer Power optimizers over microinverters for a few reasons that I will not get into here.  I cover all of that in my “Secret Guide to Buying Solar” where you can get all of that information plus plenty of information on how to spot a dishonest contractor.

Picking the right solar company will make all of the difference in your solar energy experience.  With all of the money that you will save over the life of the system, it is worth paying a little more for the right company.

Here are 3 things you can do to vet your solar energy company.  First is check out their Solar Google reviews. If they have bad reviews you can simply disqualify them from your process.  To be fair if they have only 1 bad review you can read the review and determine if it was a situation the solar company tried to resolve or not, but if they have a pattern of bad reviews then simply disqualifying them is the wisest solution.  Second, call them and see how long it takes for them to get back to you. If they do not get back to you right away while you are in the purchasing phase then you know they will likely be slow at getting back to you after you have purchased a solar panel system.  I would recommend trying this a few times to make sure they give you consistent quality customer service. Finally, have them give you 2 or 3 former customers who you can contact and ask them how their buying experience was as well as the follow up after the system was purchased,  has the system performed as promised and how is their ongoing customer service.

If all else is equal in terms of quality of solar products and the reputation of the solar company then I think the price can be a very strong determinant for which solar dealer to choose. I know at Emerald Sun Energy we take your Solar journey and customer satisfaction very seriously.  Our motto is “We look out for your interests as if they were our own”. Competitive pricing combined with exceptional service is our secret sauce for success and hope we gain the opportunity to add you to our growing list of completely satisfied customers.

Solar Company - 09/12/2018

Questions you should ask your Solar Company – part 3

Questions you should ask your Solar Company – Part 3

16. Which is better – solar Energy loans or solar Energy leases?

Increased options available for solar energy loans have made them the optimal choice over a solar lease. Two distinct differences apply to solar energy financing, first you will receive a 30% federal tax credit and second it will increase the value of your home. Also, solar financing options now are available as low as 2.99% – 5.99%.  In Florida, Leasing a solar panel system is illegal and you have to tie the solar energy system to the electric companies electrical grid.  Leasing options are not as favorable because of the terms and that you do not receive tax credits or the increased value of your home. However, when leasing a solar panel system the leasing company is responsible for all of the maintenance of the system while when purchasing the homeowner is. Many solar companies will also include maintenance of the system but you will have to ask them to include it in most cases.

17. What is the difference between secured solar loans and unsecured solar loans?

A secured solar loan would usually entail an equity position on the home where an unsecured solar loan would operate more as straight credit. The advantages of a secured solar loan would be getting to write off the interest paid from the loan as well as getting a low rate without additional financing fees. The advantage of the unsecured solar loans is that there is no additional equity position/lean put on the home. There are also very attractive low rates available but you will usually have to pay upfront financing charges to get them

18. How do I choose the best solar loan?

To get the best solar loan you have to compare the total cost of the loan. Most people make the mistake of looking at the price of the solar panel system over factoring in the monthly rate and the term on the loan.  So when you look at the actual total of the loan it will calculate the total amount of money you will pay for the solar energy system including the interest.  To figure out the total cost of the loan you need to multiply the monthly payment by the number of payments(term) of the solar loan. That will give you your true system cost and allow you to compare your best deal.  Most Orlando Solar Companies will try to show you a lower cost of the system but have a higher monthly payment then a more expensive system because they are charging you a higher interest rate.  To get a lower interest rate the financing company will charge an additional financing charge which will increase the sticker price of the solar panel system.  However, because of the lower interest rate, your actual total cost of the system will be less.  This is important to understand and to get more information on this and other sales practices used by solar companies you can read “The Secret Guide to Buying Solar”.

19. Can I afford to go solar?

The better question is can you afford not to… The price of solar is now very attractive with the lowest rates ever (70% less than in 2009) combined with the current 30% tax credit and low financing options it is usually at least $50 a month cheaper than paying the power company and as time goes by the amount you save only increases.  Consumer Reports came out in 2016 and said there has never been a better time to go solar and that remains to be true.

20. Is my roof suitable for solar panels?

If your roof is less than 10 years old your roof is probably a good fit for a solar panel system. The best pitch that works for solar is 30 – 45% which includes over 90% of home roof pitches. Solar Energy will work with other pitches but you might sacrifice some efficiency in the process.

21. What size should the solar energy system I get?

The average system size that is purchased in the US is a 7KW solar power system. However, this differs from what size system you need. To determine the actual size that is needed you will need to know your monthly average kWh. In Orlando, Florida if you have $190 a month power bill you would require a 10KW solar panel system to produce enough energy to offset your electric power bill.  Emerald Sun Energy is an Orlando Solar Company that services the entire central Florida region Including Daytona, Orlando, Melbourne, Tampa, Vero, Sebation, Kissimmee, Lake County, Seminal County, Brevard County, Polk County and everywhere in between.

For additional Questions you should ask your solar company please see related posts:

The 7 Most Important Question to Ask Your Solar Company – part 1

Questions you should ask your Solar Company – part 2

Solar Companies - 08/19/2018

Commercial Solar Incentives makes Solar a great choice for businesses

The solar industry seems extremely focused on educating the residential homeowner on the benefits of switching to Solar Energy. Which by all means is a critically important segment of the solar industry and does need the education and attention. However, this should not be at the expense of the commercial market which in its own rights is an incredibly important segment of the solar industry.

653kw-commercial-solar-272x182

Comercial Solar Orlando
Solar Energy Orlando
Solar Power Orlando

The Commercial Solar Market in Orlando has an incredible opportunity to secure a return on investment even over a residential home. This is because they have additional incentives that they can implement over the residential market.

There is two main incentive for commercial solar customers.  The first one is the same for commercial customers as well as it is for residential customers and that’s the 30% federal tax credit.  However, with businesses they are almost always able to take advantage of the tax credit where the residential market sometimes needs to utilize it over a multiple year period.  Where businesses are able to utilize it within the first year.

The second main incentive really supercharges the investment portions of this opportunity. For businesses, they are able to depreciate the equipment over a 5 year period which gives them the equivalent of an additional 30% discount. That means the potential net system cost for a commercial solar panel system would be 40%.

With a payback period of fewer than 5 years and attractive financing options available, all commercial solar customers energy expense is less than what they pay the power company. In addition to that, an smart business is always looking for ways to decrease their expenses or increase their profitability. Solar does exactly this because it converts a variable/fixed expenses into a profitable asset.

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Solar Power Installation for Commercial businesses

A couple of things to consider for Commercial Solar Customers is that the 30% Federal Tax Credit is due to expire at the end of 2019.  That means for the next couple of years will be the golden age of buying solar panels.  The other thing to consider is understanding what you need to do to get the best solar panel system for your money.  Many solar companies use a laundry list of tricks to sell their products but knowing the difference is critical to getting the return on investment.  To get a better understanding you need to read The Secret Guide To Buying Solar.  This guide will give you all of the information to protect yourself from dishonest contractors.

Emerald Sun Energy is an Orlando Solar Energy Company servicing all of Central Florida.  They Specialize in Residential and Commercial Solar Installations.  They have been featured in Solar Industry Magazine as well as SolarPro Magazine as a best practice solar installer who protects the rights of their customers.

Commercial Solar Company - 10/13/2017

Trump Pulls out of Paris Accord – What Does That Mean For The Solar Industry?

What does President Trump Pulling out of the Paris Accord mean for the solar industry?

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The immediate reaction Solar Power Company Orlandois to panic into a state of hysteria. As President Trump's resistance to clean energy is truly baffling. For someone who is so concerned about jobs the fact that he is not considering how robust of a job market renewable energy has been in recent years is remarkably short sited. It is the largest segment of new jobs being created in the energy sector. According to Fortune.com renewable energy is creating jobs 12 times faster than the rest of the economy.
  In his speech, President Trump referred to his reasoning for making this monumental decision was looking at future projected reductions in energy productions from environmentally hazardous sectors like coal which he stated would be reduced 83% by 2040.  He further went on to say that there are new coal plants opening in Pennsylvania and West Virginia. The future ramifications of this decision can put America irreversibly behind the industrialized world when it comes to modernization and an eco-friendly environment.  The impact could potentially be catastrophic as I believed we were on the verge of being the world's clean energy leader.  As a world leader, we would be able to dictate and develop an industry that would create way more jobs than trying to hang onto archaic jobs that harm the workers' health and damages our environment.  The long-term economic ramifications may be felt for generations.
Being an industry leader in Clean Energy would position the United States in the enviable position of leading the way in new technology development and research into renewable energy.  It is the difference between playing checkers and playing chess.  President Trump is playing checkers.  He thinks by jumping the red piece on the board is securing America’s future.  What he doesn’t realize is he is playing chess and he just exposed his queen.
Concept of climate change.
  It is almost like he would have to have a secret agenda to pump up our reliance on coal and oil for this decision to make sense to me.  Then again it does fit into the billionaire club that he has as a cabinet and the 50 billion dollar tax break he is giving to his billionaire friends.  Can this just be another box checked to the elite oligarchy? To be fair President Trump did say he wants to re-enter the Paris Accord with an agreement that will put America on an even playing field with the rest of the world.  This does sound fair in the sense that China and India do not have the coal restrictions that we have and would be able to produce coal at an even cheaper rate than the US can.  Further driving down energy costs for their countries but making the United States more vulnerable to energy embargoes and supply issues. For all of the baggage, issues and unqualified experience to perform as President I did feel that President Trump’s only positive characteristic was his business prowess to determine when a deal has room to be reworked in our favor.  Hopefully, that is the case here.
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However, the fact that he takes this stance after repeatedly denying that global warming is an issue that man is contributing to, calling it a scam to hurt American businesses is just misguided and dangerous.  That's like saying it is a hoax that water boils at 212 degrees.  The science is overwhelming and verified by independent scientist that are not being compensated by either side of the isle.  We have a responsibility to survive today and preserve a fruitful environment for our future generations.
  How does this impact the solar industry in the United States?  That is up to us.  According to the NY Times, 57% of Floridians do believe we are causing Global Warming which is below the National average of 69% of Adults believe we are contributing to Global Warming and need to restrict our carbon emissions. The fact that in most states energy costs are on the rise and the price of solar has dropped by 60% since 2010 leads me to believe we are on the cusp of a Solar Revolution that will move us closer to energy independence and a cleaner environment. When we couple that with advancements in solar panel efficiencies and financial lending options most Americans today can go solar at a lower cost than to continue to purchase energy from their local power companies. That makes now the best time ever to Install Solar Panels while the Federal Tax Credit is still available until the end of 2019.  Home & business owners will still receive a 30% Tax credit for the purchase of a solar panel system.
We have to be diligent in our efforts and homeowners need to be properly informed of all of the benefits that they will receive by converting to Orlando Solar Power and how to purchase the most profitable solar panel system that they can.  In Florida, there are many avenues of miss information being passed out by opportunistic Solar contractors.  To protect yourself in buying process you need to read “The Secret Guide to Buying Solar”.  Discover everything you need to know and how to purchase a solar panel system with a solar production guarantee.  That will protect your system and guarantee its profitability.
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  President Trump may deny climate change but Americans overwhelmingly support clean energy efforts.  The Bottom line is Solar Energy is more cost effective for homeowners than to continue to pay the power companies escalating energy costs. In conclusion, I believe this will have little impact on the Solar Industry and the long term outcome is up to us to take action and convert to solar energy.
Residential Solar Company - 06/02/2017

Solar Energy Revolution Is Now

Solar Energy Revolution

Solar Panels Orlando

Solar Panel Installation Revolution

Solar Power is a safe and abundant energy source in Orlando Florida that can reduce pollution and solve our energy crisis for the future.  There are so many positive reasons for the expansion of solar energy that many people find it hard to believe.  Because if that was the case we would be using it already.  Unfortunately, because of special interest groups and oil monopolies, the expansion of solar has been repressed.  However, in recent years the expansion of solar has begun due to a variety of reasons that we will explore here. First off our Government back in 2006 realized the need for us to become more environmentally responsible and decided to pass an incredible financial incentive to add solar to homes and businesses.  That was the introduction of the 30% federal tax credit.  What this means, so long as you have enough taxable income you will receive a tax credit for 30% of the cost of your solar panel system.  If your home solar panel installation cost $30,000, you would receive $9,000 back from the Government.  Effectively lowering the net price of your solar energy cost to $21,000.  This credit is available through 2019 so now is the time to take advantage of this while you can. Next, the cost of solar panels for your home have dropped by 70% since 2008.  This is due to the laws of supply and demand.  After the tax credit came into existence the demand for solar began to increase which started to drive down the manufacturing cost of solar panels.  As the demand continued to rise more contractors entered the solar industry and created even more competition which drove the price down even more.  The prices have now plateaued and according to consumer reports in June of 2016 “now is the best time ever to buy solar”. With Federal Tax Credit still available and prices at their lowest point has now created an atmosphere for a solar energy revolution.  If you wait much longer you will lose 30% discount.  Most experts agree that prices are at their lowest and will slowly creep up from here.  So for all of the people who were waiting for cheaper pricing the time has arrived. The biggest reason for the dawn of the solar energy revolution in Orlando Florida is you can now purchase a system using the money you pay the power company and actually save money from day one.  Because of no money down financing options and 20 year terms as low as 5% you can add solar to your home today and lower you energy expense immediately.  For example, if you are paying $200 per month to the power company, you can now have a situation where you are paying $160 to finance your solar power system and $30 to the power company.  Effectively saving $10 per month in year one.  Please keep in mind this is an example and results can vary but not by much. I typically recommend a shorter payoff period which will give you a better long-term return on investment but it is clear that the above example creates an atmosphere for people to take advantage of owning their own power instead of renting it. In conclusion, it will be exciting to see over the next few years how the solar energy revolution explodes and people start to take control of their energy needs for themselves.  Now that solar has passed the 1,000,000 home mark the expansion should be exponential and the benefits shared by all
Solar Energy Orlando - 03/01/2017

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