Supporting Solar

I am entering my 11th year in the solar industry! The US has seen 33% growth in this last decade1.

As the climate becomes unpredictable, solar adoption has been on the rise.

The reasons to “go solar” are not just financial. Fossil fuels are finite, polluting resources that are burned and disposed of into our air. This has and will destabilize historical climatic conditions. Dependable energy from renewable sources, like solar, is the foresight and trend we should follow.

Storm clouds over Coastal South Carolina

Why use solar power?

  • Alternative to coal-fired power
  • Diversify our energy sources
  • Bring energy source closer to the energy consumers
  • Possibility of energy storage for emergency use
  • Quiet, clean electricity for home and transportation
  • Plug your EV into the wall outlet. Drive on full tank the next day!
  • Add value to home/property
  • Tax credits and tax forfeiture available
  • Reduce electric bills
  • Fully recoup your investment in your solar upgrade
Wave surge brought sand onto the buffer dunes.
Steps down to the beach now part of the beach!

Generating solar electricity in the community makes a lot of sense. Power is produced and used locally. Sea levels are rising and will not stop until we slow and reverse the trend.

Ask me about your solar potential and start saving money and the climate as soon as possible!

Sources:

  1. SEIA.org

Electric Co-ops in the U.S.

There are 800 member-owned electrical co-ops in the USA. 40 million people get their power from an Electric Co-op! Principally in rural areas, these Cooperatives cover 56% of the populated land mass in the 50 states.

Rural Electric Cooperatives began in 1876. They are consumer-owned, non-profit utilities. FDR’s New Deal created work projects in the 1930s and this brought electricity to rural areas. In 1942 the rural electrical co-ops of WA State formed a coalition. To this day the WRECA represent those member co-ops in Olympia.

Metal barn roof with cool cupolas on top!

Ratepayers to the Co-ops are not customers, they are owners. They have a say in the supply of electricity. Lately these member-owners have been interested in local renewables like wind and solar. Grid resiliency and enhanced services are priorities via rural microgrid projects, and deployment of broadband (internet) service.

Sources:

  1. www.WRECA.coop
  2. https://ilsr.org/rural-electric-cooperatives

A Changing Climate – South Carolina

The Palmetto State is a sunny place, with beaches that ribbon the eastern shore. Like other coastal areas, flooding and onshore storm damage is a growing threat.

In my previous post I discuss the state’s solar industry. The emergence of local solar installs in coastal communities is coinciding with the visual evidence of climate change.

Pawley’s Island, road’s end, March 2020

It will be public funding and budgets that will mitigate, prepare and repair the coastal areas. To save places like Pawley’s Island, a breezy retreat settlement from the antebellum period, they will use public subsidy, i.e. taxpayer investment. Should they instead charge the companies that caused climate change or some other thoughtful solution?

Flooding in Charlestown SC, March 2020

In coastal flooding records beginning 1953, 22 of the 32 major or greater flooding events have happened since 20152. More frequent and intense storms ravage and flood South Carolina.

The state’s aquatic conditions and their politics coincided to make the Charleston area a human slavery trade hub in America’s founding. Places made possible rather quickly and majestically by relying upon and exploiting a slave economy and labor market.

If money is invested to save water-side mansions, what about the coastal areas where the Gullah Geechee still live? Or the places that are less symbolic than Old Charleston or Pawleys Island? The residences of poorer people lacking the resources to move or repair damage done by these weather events?

Generating solar electricity in the community makes a lot of sense. Through honest debate, we can collectively heed the science. Establish progressive policy to power our lives with limited harm to ourselves and the world we live in.

Sources:

  1. www.ClimateToothpaste.com boxes with “patented blend of humor”!
  2. www.dnr.sc.gov/climate/sco/ClimateData/yearly/cli_sc2020review.pdf

2022 Solar Incentives – WA State

– 26% Federal Tax Credit expires Dec. 31, 2022. Average of ~$5000 per Residence.
– Net Metering, aka Bill credit from the electric utility. No expiration date.
– No sales tax.
– Increased home value. Also, property tax assessment exempt.
– Associated electrical upgrades, e.g. batteries, also qualify for the 26% Federal Tax Credit.

Do you own a residential rental property?

Add this home improvement and in the long run, save money and add value.

  • Free electricity from the solar install!
  • No WA State Sales Tax
  • Exempt from Property Tax Assessment
  • A 26% Federal Solar Investment Tax Credit (must be installed before Dec. 31, 2022)
Detached Auxiliary Dwelling Unit (DADU) with PV array

Applicable Solar Incentives:

26% of the total solar invoice is equal to the Tax Credit. For example, a $20,000 solar install would be a $4400 Tax Credit.

Your Residential Rental property is classified as a Business, or income-generating. The 26% becomes a Line Item Credit on your tax liability. This is the same percentage amount as the Solar Tax Credit that residential homeowners enjoy. The IRS wants you to file the Tax Credit differently but the total credit percentage is the same.

Typical Wall-mounted components, incl. energy storage.

Additional Cost Recovery:

If your rental property is a qualified business then it’s likely you can depreciate, or “write off” your investment in Solar. There are limits on how much credit can be taken in a year. I can provide all of paperwork needed to pursue this. Let’s be sure and consult with your accountant first, for instruction and advice regarding this possibility. See #1 below, IRC Section 48 – Energy Credit, MACRS and Accelerated Depreciation Schedule.

References:

  1. IRC Code Section 48 
  2. Investment Credit Form 3468  
  3. Instructions, Form 3468 
  4. Adjustments to basis for Credit IRC Code Section 1016(a)(19) 
  5. IRC Section 25D for Residential Energy Efficient Property 

Attn: Solar System Owners

**Update, 2024: Offer has expired

I am so grateful that you have chosen to go solar! Since 2012 I have been evangelizing, designing, and selling solar in Washington State. You have made the decision to support solar and I’d like to give you a Free Thank You gift for doing so!

On the other side of the country, in the District of Columbia, a grassroots organization called Solar United Neighbors (S.U.N.) has been advocating for expanding access to renewables, fighting for solar rights, and promoting community-led efforts for solar adoption.

Choose your favorite!


They began doing this in the Mount Pleasant neighborhood of D.C. in 2007. These efforts have resulted in thousands of members who now have solar. Just like you these members receive discounts to their electric bills, have raised the value of their property, and produce clean, local power for themselves and the grid. Would you like to join this community, and embolden the rights of solar adopters?

Solar United Neighbors offers many great resources for you, the solar owner. You are cordially invited to join this group, through my special sign up code. If I have not sent you this code, please request it of me.

The annual membership is typically $55, but this fee is waived for you.

Benefits include:

  • A free t-shirt, and choice of stickers/signage
  • Join an online community to network with solar supporters
  • Members only content platform: Events and Info
  • Free Solar Advice and Practical e-books

More info for current Solar Owners is here: https://www.solarunitedneighbors.org/gone-solar/

Click below for an example of this valuable national resource. Here are Solar United Neighbors descriptive overviews of what solar means for the various categories below:

A Visit to Coastal South Carolina in 2020 – With 2021 updates.

The Palmetto State is a blooming solar market. 🌼

Financial incentives have been a game changer. Many South Carolinians with solar installations get a combined state and federal tax forfeiture of at least 51%1 of the total cost of the purchase of a solar system.

There were 1,160 installations in 2016, 18,000 in 2019 and a forecast of 40,000 before 20242.

New Solar on Litchfield Beach 2020

Solar at the beach! Ocean adjacent systems may use system components that are more resistant to saline conditions.

But also…Fresh rain cleans your panels!

Suburban Neighborhood, Murrells Inlet SC

South Carolina has huge solar potential but has opponents. Can you guess who doesn’t want competition in the energy marketplace?

Recently, a collective of solar-friendly entities was able to successfully lobby on behalf of the state’s utility customers. State Regulators rejected the latest appeal of the private utility companies who want to continue their monopoly on power delivery.

For example Dominion Energy’s attempt to attach financial penalties to their customers that adopted solar was officially and significantly delayed in May 20213.

Sources:

  1. https://www.energysage.com/local-data/solar-rebates-incentives/sc/
  2. https://www.attainablehome.com/how-fast-is-the-solar-energy-industry-growing-in-the-usa/
  3. https://pv-magazine-usa.com/2021/05/20/south-carolina-regulators-approve-net-metering-rules-for-residential-solar/


Solar Installation: Off-Grid vs. Grid-Tied

Thinking of installing solar? How will you employ the usage of the sun’s power?

Will your system be closed loop Off-Grid; or will it be a back & forth Grid-Tied system?

Here is a description of these two available options.

Off-Grid

Historically, solar installations were viewed as an off-grid project. If the power company’s lines didn’t drop to your property, you could use solar to make your own electricity.

If your property is remote, or you have a desire to be fully or partially autonomous, you can still capture and keep your solar energy on site. This will require batteries and storage technology. The solar panels fill the battery with power and that electricity will be available for use. Sizing of the solar system, the dynamics of power generation, and storage capacity become considerations. Professionals such as myself can help you plan for this circumstance.

Grid-Tied

This is the most popular form of solar adoption. Installations are connected to the available electrical grid. Such interconnection offers reliability and convenience. Use the solar power you are creating and/or use the grid power when needed.

Owners of grid-tied systems are recognized by local utilities as Customer Generators. Your solar installation powers your own property as well as others, via the grid’s utility lines. As a Customer Generator, you will give the grid electricity when you are producing more than you can use. Then, later in the day, or later in the year, you will be able to use that 1:1 corresponding solar credit. This benefit is considered an important Incentive, and states without the incentive experience less solar adoption by utility customers.

In WA State we have a law that protects solar properties from ever being denied a 1:1 Credit for power they send to the grid. It is known as the Solar Fairness Act and this Net Metering Law protects Customer Generators. My blog post on the 2019 Legislative session. 

Battery Back-up

If you have a grid-tied system and you would like clean, quiet power generation when the grid is out of commission, you have the option of adding batteries. Installing batteries at the same time you add the solar means that you can apply the Solar Investment Tax Credit to that cost as well. There may be a future savings depending upon how your utility bills you for electricity. In the NW, residential power delivery is most vulnerable in the Wintertime. Those are the shortest and darkest days. Therefore the battery storage must be sized aggressively enough to have the capacity needed to power the desired loads.

2019 – Expiration of the Federal 30% Tax Credit for Solar Installs

Right now might be the best time to go solar!

Since 2005, the US government has offered a 30% Solar Investment Tax Credit (ITC) for PV installations. This is a credit, versus a deduction, and is set to expire at the end of 2019. Find out ASAP if you and your property qualify for 30% Tax Credit this year.

With 7 years of experience in the WA State marketplace, I can answer questions, supply designs and give relevant feedback. I will be recommending the most trusted installer available. My recommendations put you directly in contact with a local company well suited to your solar electrical ambitions.

Due to the popularity of this expiring 30% incentive, some installers have stockpiled or reserved components. I will be able to facilitate quotes, timelines, and install preferences for you. No better time than the present.

**The Solar ITC is a line item credit on IRS Form 5695. Systems must be placed in service by Dec. 31, 2019. Aim to be on installation calendars soon, ideally before the short and unpredictable December days. Current federal law: If the install is completed after 2019, it will qualify for a 26% ITC in 2020, and finally 22% in 2021.**

2019 Legislative Session – Review

The 2019 State Legislature passed 2 new laws related to Solar. The bills promoted renewables in Washington State and sought to create greater confidence in interactions between multiple entities. Adopting solar now has its advantages, however if you must wait, a new Sales tax exemption will sweeten a solar contract drafted in 45 days or so.

The Solar Fairness Act pertains principally to Net Metering. Get credit for all the electricity you generate. Some utilities in our state had exceeded the legal threshold and therefore were under no obligation to grant credits to new participants . Now we can all interact with greater confidence. The existing state law threshold was very low. This new legislation raised it from .5% to 4% (or June 30, 2029 – whichever comes first). Here is the Solar Installer of WA’s bill digest. Way to go solar citizen lobbyists!

100% Clean Electricity Act. This ambitious 100% clean electricity mandate is a source of celebration for Governor Inslee and progressives. The framework propels a grid that uses clean renewable power. Within this law we have now established a Sales Tax exemption and a Remittance structure for various sizes of installations. See the savings on your solar contracts and invoices for the next decade. (Project must be completed by Dec. 31, 2029)

  1. Pay No Sales Tax: Solar electric systems ≤ 100kW installed after July 1, 2019. An overwhelming majority of solar projects are in this category.
  2. Partial Remittance: Solar systems over 100kW installed after Jan. 1, 2020.

Please refer to this Solar Installer of WA recap for more details on these new laws.

Solar at work!