How Residential Solar Is Installed
Residential solar is a great way for homeowners to reduce their electricity bills and take control of rising utility rates. These systems can last 25 years and deliver an excellent return on investment with national and state tax credits and incentives.
Homeowners have a few options when it comes to their energy systems including purchasing them outright or utilizing loans, leases, and power purchase agreements (PPA). We recommend a cash purchase because it offers the lowest total investment cost.
How It Works
Installers will build scaffolding into your home and gain access to the roof. Then they’ll attach mounts which hold solar panels. Once the system is in place, the solar panels generate energy during the daytime. This electricity flows into the inverter, which turns DC electricity into alternating current (AC electricity). The AC electricity then powers your appliances and lights.
If your solar panel system produces more energy than you use, the excess will flow into the electricity grid. This is known as net metering. Energy companies will provide you with a smart meter to track this energy flow.
Some homes also add battery storage to their solar panel system. This allows them to store energy at night for off-peak use. This cuts their energy costs even further.
Installation
The installation process starts with a thorough evaluation of your property’s potential for solar, including determining if the roof is suitable and assessing any additional costs or incentives. It’s also important to understand your electricity consumption and rates so that the system can be sized accordingly to minimize electricity bills and maximize government compensation through Net Metering.
Your local building department will need to approve your solar installation, issuing what’s known as a Permission to Operate (PTO). A representative from your utility company will then inspect and approve the system for interconnection to the grid, and may upgrade your meter if necessary. With permits secured, the equipment can be ordered. Now comes the fun part – getting your home’s PV system up and running!
Maintenance
While solar panels require little maintenance to function, it is important to check for obstructions that can decrease energy production. In most cases, this means cleaning the panels a few times a year.
Typically, this involves spraying them with water from ground level or hiring a roof cleaner to ensure safety and maximum efficiency. In some regions with heavy pollution or dust, more frequent cleaning may be required.
Additionally, it’s important to check for shade on the system from surrounding trees or vegetation. This can affect energy generation, especially early and late in the day.
It’s also a good idea to regularly check the online monitoring platforms for your system. This will help catch issues before they become major problems and prevent unnecessary repair costs.
Tax Credits
The federal solar tax credit (ITC) is a nonrefundable tax break worth 30 percent of your system costs. It’s available for residential homeowners who buy and install photovoltaic systems that generate electricity at their primary residence. The tax credit is more powerful than a deduction, as it reduces your actual taxes owed rather than merely reducing the amount of taxable income you report on your return.
Some states offer tax credits that work similar to the federal ITC. These and other local and utility incentives and rebates, including performance-based rewards, may impact the value of your ITC if you claim one. You can also file for a property tax exemption to avoid paying higher property taxes as a result of your solar installation. Learn more here.
Net Metering
Net metering is the policy that encourages solar energy adoption by providing financial value to homeowners for the excess electricity their systems send back to the grid. This is done by using a bi-directional meter that tracks the energy flowing to and from your home and netting how much you consume from the utility versus how much power you generate and send back each billing cycle.
Your electric company will install a new meter that records both your consumption and generation at your home. Depending on the state’s laws, your system might be eligible for full retail or even virtual net metering with the utility. In New York, we offer one-to-one Net Metering, which is the best in the country. Our team will prepare all the required documents to submit to your utility and get you set up.
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