There is a lot of debate surrounding solar energy, but one thing is certain – it is an excellent solution for most people, and not for others. Before deciding to miss out and say “NO WAY” or opt in, consider the following three factors and discuss them with your solar consultant:

FIRST: Savings Will Vary

It can Save you Money, but it might not. If your main goal of going solar is to save money you need to make sure that your new system will produce enough electricity to cover at least 85 to 95% of your electric bill, for you to produce enough energy year-round. Your solar consultant should be able to show you how much your new system will produce and how much you will consume. If you’re opting for a net metering option, you will accumulate credits during times of overproduction (your system is producing more than your home is consuming) which can be applied during times of underproduction (your system produces less than your home is consuming).

If the production is not there, you need to be very cautious, you don’t want to pay for installation and finance a system that will only cover a fraction of your energy needs. You are welcome to do so, but it will yield you short-term benefits but should yield you long-term benefits.

SECOND: You Have Options

Not all solar companies are the same, and there has been a surge in new solar companies popping up. Just like with most industries, there are going to be 3 key differences that you will find in most companies.

Quality: When choosing a solar company, it's important to verify that they're sourcing their systems, panels, batteries, and other equipment from reliable sources. Look for Tier 1 panels to ensure quality.

Price: You get what you pay for... a common phrase that holds in this industry. Solar systems and the installation costs vary tremendously. Why? Well because the quality of products and services also vary significantly. Make sure you get multiple quotes before you make your final decision.

Service: Service is a vital aspect when it comes to choosing a solar company. You want to make sure that the company you choose offers excellent customer service and support, from the initial consultation to the final installation. Check reviews and ask for references from previous customers to ensure that the company you choose has a good reputation for customer satisfaction. A good solar company should also offer warranties and maintenance services to ensure that your solar system runs smoothly for years to come. Keep these three key differences in mind when choosing a solar company, and you'll be on your way to enjoying the benefits of renewable energy.

THIRD: There Are Tax Credits, Rebates, Discounts, and Incentives

Government assistance is available for both residents and businesses that opt for solar as a means of energy production. 5 types of government programs are available to consumers:

Federal Solar Investment Tax Credit (ITC): This is a federal tax credit available to homeowners and businesses that install solar energy systems. The ITC allows you to deduct a certain percentage of the cost of installing a solar energy system from your federal taxes. The percentage has varied over the years and is subject to legislative changes.‍

‍‍‍State Incentives and Rebates: Many states offer additional incentives, which can include state tax credits, cash rebates, and solar renewable energy certificates (SRECs). These incentives vary by state and can significantly reduce the net cost of a solar installation.‍

Utility Rebates: Some local utilities also offer rebates for solar installations. These programs are often designed to encourage energy efficiency and the adoption of renewable energy within their service areas.‍

Net Metering: Net metering allows solar system owners to sell excess energy their system produces back to the grid in exchange for energy credits. When the solar panels produce more electricity than is used, the excess energy is sent back to the power grid, and the owner receives credits from their utility company, which can be used to offset electricity costs when the solar system is underproducing.

‍Performance-Based Incentives (PBIs): In some regions, PBIs pay solar system owners a per-kilowatt-hour credit for the electricity their system produces over a guaranteed period.

Federal Solar Investment Tax Credits and State Tax Credits or rebates are only beneficial if you have a tax liability regularly. Suppose you don’t then there is no tax liability to credit. Therefore your “credits” are null.

If you qualify for a federal or state tax credit for solar installation but don't have any tax liabilities in the year you install the system, the handling of this situation depends on the specific tax credit program. This is where many people get confused or sometimes misled, our goal is to bring clarity and integrity to solar adoption.

Federal Solar Investment Tax Credit (ITC): The ITC is a non-refundable tax credit, which means it can reduce your tax bill to zero, but you won't get a refund for any excess amount. However, if your tax credit exceeds your tax liability, the excess amount can usually be carried forward to the next tax year. For instance, if you're eligible for a $3,000 tax credit but only owe $2,000 in taxes for the year, you can carry the remaining $1,000 credit to the next tax year.

State Tax Credits: The way state tax credits work can vary depending on the state. Some states may allow you to carry forward the excess credit, similar to the federal ITC. Others might offer refundable credits, which means you could receive a refund if your credit exceeds your tax liability.

It's important to consult with a tax professional to understand the specific rules of the tax credits you're eligible for and to ensure that you're applying them correctly to your tax situation. They can provide guidance tailored to your circumstances and help you maximize the benefits of solar tax incentives.

For example, Illinois residents have a different state program. As of April 2023, Illinois does not offer a specific state tax credit for solar installations. Instead, residents benefit from programs like the Illinois Shines (Adjustable Block Program) and Solar Renewable Energy Credits (SRECs), which are separate from tax liabilities and provide incentives based on the energy production of your solar system.

Uncertain about your solar energy options? Let us illuminate your path. Reach out to Expert Solar Consultants today for clear, expert guidance tailored to your unique needs.

Don't leap into solar blindly; allow our seasoned consultants to demystify your decision-making process with personalized insights.

At Expert Solar Consultants, we don't just make solar simple — we make it smart, seamless, and suited just for you. Connect with us now to explore your solar possibilities with confidence.