What is a Solar Power System?
Solar power is the renewable energy source of the future. Now it’s easier than ever for you to join the others who are reaping the benefits from a solar power system. Solar power systems are also known as solar photovoltaic (PV) systems, solar panel systems or solar energy systems. Either way it consists of solar panels that convert sunlight into electricity used to power your home, business or even your car.
How does solar power work?
- Rooftop or ground mount solar panels collect photons from the sun and create a direct current (DC) electrical field.
- Solar inverters attached to the panels convert DC into usable alternating current (AC).
- AC is routed through your home’s switchboard to supply electricity to your home.
- Excess electricity is stored in a solar battery or sent to the electrical grid for future use.
Why get a solar power system?
There are many reasons why you should go solar. The following are some of the most beneficial reasons:
- One of the most popular reasons why people choose to go solar is to drastically reduce or eliminate their electricity bill.
- Return on investment
- The average solar power system owner pays off their purchase in seven to eight years and earns solar ROI by receiving free electricity for the remainder of their system’s 25 plus year life span.
- The federal investment tax credit (ITC) allows you to apply 30 percent of the cost of your solar PV system as a tax credit to your income tax bill. Interest on solar panel systems financed with a solar loan may also be tax deductible.
- Studies have shown that solar panel installation can dramatically increase the value of your home.
- Reduce your carbon footprint.
- According to the U.S. Environmental Protection Agency, the average household emits approximately 20 metric tons of carbon pollution each year. By installing a solar power system, a typical two-person household reduces their carbon emissions by three to four tons annually.
- Solar power systems are extremely resilient and require little to no maintenance.
- Solar panels come with a wide range of warranties for damage and performance.
- Solar panels even work on cloudy days. Cloudy days usually produce around 10% to 20% of the amount produced on sunny days.
- Some utility providers will pay you for the electricity you generate.
Why choose Right Now Air & Solar for your solar power system?
- We are one of the very few businesses that do the solar installation ourselves without hiring another contractor.
- We can bundle certain home upgrades necessary to support solar panels into the price of your solar installation.*
- We customize your system based on your home’s individual needs.
- We offer rooftop and ground mounts.
- We will cover labor costs for the life of the manufacturer’s warranty.*
- We take care of everything from scheduling, submitting permits, working with the city and PG&E.
- We offer flexible financing options.*
- We offer BayREN rebates up to $3,150 (on select systems).*
- We offer military and emergency responder discounts.*
- We are one of the only companies that will service, repair and maintain your existing solar power system and panels even if we did not do the installation.*
*Terms and conditions apply
Information about solar tax credits:
As of January 1, 2020, Federal Tax Credit will pay for 26 percent of the system cost.
As part of the Emergency Economic Stabilization Act of 2008 solar tax credits were enacted, which extended the 30 percent ITC for residential solar property through December 31, 2016. In 2015, legislation renewed these credits for five years with an incremental de-escalation of the credits.
Here are the specifics:
- 2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.
- 2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
- 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.
- Legislation now allows owners of new solar energy systems to claim the tax credit as soon as the construction begins as long as it is operational by December 31, 2023. Furthermore, the act removes the cap on qualified solar electric property expenditures (currently $2,000), effective for property placed in service after December 31, 2008. It also allows individual taxpayers to use the credit to offset AMT liability, and carry unused credits forward to the next succeeding taxable year.
The following chart is an example based on estimates. Your exact results may differ.
|Total Cost of Solar System||$14,000|
|Federal Tax Credit||$4,200|
|Net Out of Pocket Costs for Solar System||$9,800|
|Solar Power Savings Chart||Solar Power Savings Chart|
|Average Yearly Electric Bill Before Solar||$2,200|
|Average Yearly Electric Bill After Solar||$800|
|Average Yearly Electric Bill Savings||$1,400|
|Projected Lifetime Utility Savings||$35,000|
|Estimated Payback Period for Solar||6-7 Years|
|Return On Investment (ROI)||17.8%|