The Investment Tax Credit – Start Saving With Solar

For many reasons, making the shift to solar energy may be beneficial. Homeowners not only get the advantages of lower utility bills, self-generated energy and environmental responsibility but they also have the opportunity to take advantage of the Investment Tax Credit (ITC). This useful tax incentive can save millions of homeowners throughout the country an enormous amount of money!*

Do you already know about the ITC? Click here to speak with one of our solar experts to see if you qualify for this awesome incentive!

Whether you already have solar, are considering installing it, or are just starting to consider leaving fossil fuels behind, this guide will tell you everything there is to know about the ITC and how it may benefit you.

What is the ITC?

The Investment Tax Credit, or also known as the federal solar tax credit, “allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes.” Another great feature of this tax credit, is that the ITC applies to residential and commercial systems and has no cap on its value.[1]

The History of the ITC

In 2005, the Energy Policy Act had established the ITC, and it was only supposed to last until the end of 2007. Since the ITC was so popular and supported the United States’ transition to renewable energy, it has been extended. In fact, since it was so successful, Congress had extended the deadline multiple times, most recently in 2020. However, the tax credit won’t the same, so now is the best time to act before it goes down in 2023![3]

How Does it Work?

First things first, you need to have solar panels! Next, you need to own your solar panel system. Even if you don’t have enough tax liability to claim the entire credit in one year, you can rollover the reaming credits into future years. Keep in mind that this is only valid if the tax credit is still in effect. However, keep if you lease or have a power purchase agreement (PPA) with your solar installer, you are not the owner of the system you cannot benefit from the tax credit.[1]

Quick Facts: The ITC

  • The residential and commercial solar ITC has helped the U.S. solar industry grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.[2]
  • The 2020 extension of the ITC has provided market certainty for companies to develop long-term investments that drive competition and technological innovation, which in turn lowers energy costs for consumers.[2]
  • In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. (Systems installed before December 31, 2019, were eligible for a 30% tax credit.) The tax credit expires starting in 2024 unless Congress renews it.[3]

How to Claim the ITC

Now that you’re an expert on the history of the ITC, how can you claim its benefits? When you file your taxes with the IRS, you will want to file a Form 5695.[2] You can fill out this form at the same time you would file your federal tax return. Be sure to mention to your accountant or tax professional that you’ve gone solar in the past year, or if you file your taxes yourself, you will just need to follow three steps.

  • Determine if you are eligible for the ITC
  • Complete IRS Form 5695
  • Add your renewable energy credit information to your typical Form 1040.[2]
  • For more detailed information on the process and how it applies to you, please consult with an accountant or tax professional.

Go Solar with Momentum!

There is no better moment to switch to cleaner, more affordable energy than right now! Even though the ITC is still in force, it may not be for long. Our team has over a decade of expertise in the solar sector and is eager to assist with your project, regardless of the size.

Call us today to learn more at 1-888-MOMENTUM!

*Momentum Solar do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

 

[1] https://www.energysage.com/solar/cost-benefit/solar-investment-tax-credit/

[2] https://news.energysage.com/how-do-i-claim-the-solar-tax-credit/

[3] https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics#:~:text=In%20December%202020%2C%20Congress%20passed,2024%20unless%20Congress%20renews%20it.

Is Climate Change Real? How Can You Help?

Our earth’s rapidly changing climate is one of the most widely discussed issues nowadays, and for good reason. While some claim that the transformation of our planet’s atmosphere is a normal, gradual process, there is overwhelming scientific evidence to suggest that the climate we’re experiencing now is not natural.

Are you already an expert on climate change and more than ready to make the switch to solar, read no further! Call us today at 1-888-MOMENTUM.

Unsure where about what to think? Don’t be! Let’s dive in![1]

What Is Climate Change?

Let’s start from the beginning, what is weather and what is climate? Weather is, “the state of the atmosphere at a place and time as regards heat, dryness, sunshine, wind, rain, etc.”[19]

These are the changes we encounter and feel on a daily basis. One region of the world may experience snow while another enjoys the sunshine. Climate is different than weather, climate is the weather conditions happening in a general area in the world for a long period of time. [19] Although seasons influence climate, it is still important to understand what makes that location’s typical weather.[2]

Now that we know what climate is, let’s dive into climate change. As NASA defines it, climate change is “a change in the usual weather found in a place. This could change how much rain a place usually gets in a year. Or it could be a change in a place’s usual temperature for a month or season.”[3] While our weather may vary every few days or hours, climate change is a gradual phenomenon.

What Factors Contributed to Climate Change?

Natural and human factors have caused our Earth’s climate to change over time. The United States Environmental Protection Agency has noted that “…it is extremely likely (>95%) that human activities have been the dominant cause of the warming.”[4] Below are a few of these activities:

  1. Greenhouse Gasses: The three most impactful greenhouse gases have all increased since the Industrial Revolution, owing to human activities outside of manufacturing and production. These higher emissions have also boosted the greenhouse effect, resulting in a global surface temperature increase. Not to mention that burning fossil fuels has a far bigger impact on the climate than any other human activity.[5]
  2. Carbon Dioxide: To date, human activities release over 30 billion tons of carbon dioxide into the atmosphere each year. Since pre-industrial times, atmospheric carbon dioxide concentrations have increased by more than 40 percent.[6]
  3. Methane: Due to human activities, methane emissions have increased more than 2.5 times since the pre-industrial level.[7]
  4. Nitrous Oxide: Concentrations of nitrous oxide have increased by 20 percent since the industrial revolution and show a rapid increase towards the end of the 20th century.[8]

Evidence of Climate Change

Let’s look at a few of the significant pieces of evidence scientists have noted for our Earth’s rapid climate change:

  1. Global Temperature Rise: Increased carbon dioxide has contributed to our average surface temperature. The Earth has seen 2 degrees Fahrenheit rise in its temperature since the 19th century. Most of this warming, however, has occurred in the last 40 years, with 2016 and 2020 tying the record for warmest year on record.[9]
  2. Warming Ocean: With Earth storing 90% of its extra energy in the ocean, our oceans have absorbed much of this extra heat coming from the sun. The top 328 feet of the ocean show warming of more than 0.6 degrees Fahrenheit since 1969.[10]
  3. Shrinking Ice Sheets: Data from NASA’s Gravity Recovery and Climate Experiment have shown that Greenland lost an average of “279 billion tons of ice between 1993 and 2019, while Antarctica lost about 148 billion tons….”[11]
  4. Decreased Snow Cover: Using satellites, scientists’ observations reveal that the amount of spring snow cover in the Northern Hemisphere has decreased over the past five decades. The snow is beginning to melt earlier.[12]
  5. Sea Level Rise: Our global sea level has risen about eight inches within the last century. In the previous two decades, the number has nearly doubled that… and is accelerating slightly every year.[13]

5 Ways You Can Help

Fortunately, there are things that everyone can do to assist combat global warming. Here are a few simple things we can all accomplish!

  1. Save Energy at Home: Many times, the heat and electricity in our homes is powered by coal, oil or gas. You can use less energy by lowering your heating and cooling, switching to LED lightbulbs and using energy-efficient electric appliances. You can also wash your laundry with cold water and hang them out to dry versus using a dryer. [14] One of the biggest ways you can help save energy is by storing it with a solar + storage battery system. Not only do you get to capitalize on the sun’s rays via money-saving, carbon-reducing solar, but you also get to store excess energy away for things such as grid outages and peak rate periods.
  2. Walk, Bike or Take Public Transportation: Gasoline and diesel are two of the most common fuels used in cars. By walking or cycling instead of driving, you can help reduce greenhouse gas emissions while also improving your health. Consider public transportation or carpooling if you’ll be traveling greater distances.[15]
  3. Eat More Vegetables: Plant-based diets, on average, create fewer greenhouse gases than conventional meals. Consuming more vegetables, fruits, whole grains, nuts, seeds, and drinking less milk and meat might help you lower your carbon footprint.[16]
  4. Consider Your Travel: Airplanes produce a large number of greenhouse gases while burning a significant amount of fossil fuels. The greatest method to reduce the environmental effect of air travel is to fly less, stay virtually or take the train![17]
  5. Reduce, Reuse, Repair and Recycle: Some goods, such as electronics and clothes, produce carbon emissions during their manufacture. To help preserve the environment, buy less stuff, shop second-hand, fix what you can, and recycle when possible.[18]

Helping Our Planet One Install at a Time

While our team is working hard to design unique solar energy systems for each of our customers’ homes, there’s a larger purpose: helping the environment. Momentum Solar was founded in 2009 with the aim of assisting homeowners save money on their utility bills while also protecting the environment. With thousands of installs completed in our company’s lifetime across 11 states, it is a no-brainer that Momentum continues to grow as a top solar provider. We’re excited to be a part of your journey toward a greener, more environmentally friendly future. Call us today at 1-888-MOMENTUM to learn more!

 

 

[1] https://climate.nasa.gov/evidence/

[2] https://www.nasa.gov/audience/forstudents/k-4/stories/nasa-knows/what-is-climate-change-k4.html

[3] https://www.nasa.gov/audience/forstudents/k-4/stories/nasa-knows/what-is-climate-change-k4.html

[4] https://www.epa.gov/climatechange-science/causes-climate-change

[5] https://www.epa.gov/climatechange-science/causes-climate-change

[6] https://www.epa.gov/climatechange-science/causes-climate-change

[7] https://www.epa.gov/climatechange-science/causes-climate-change

[8] https://www.epa.gov/climatechange-science/causes-climate-change

[9] https://climate.nasa.gov/evidence/

[10] https://climate.nasa.gov/evidence/

[11] https://climate.nasa.gov/evidence/

[12] https://climate.nasa.gov/evidence/

[13] https://climate.nasa.gov/evidence/

[14] https://www.un.org/actnow

[15] https://www.un.org/actnow

[16] https://www.un.org/actnow

[17] https://www.un.org/actnow

[18] https://www.un.org/actnow

[19] https://www.merriam-webster.com/dictionary/weather

What’s the Best Place to Put a Solar Panel?

With warmer weather approaching, you may be considering the benefits of going solar, but have you ever stopped to think if your home is suitable for solar panels? Believe it or not, a few factors come into play when placing solar panels on your home.

Let’s jump in!

Shade on Your Roof

Let’s start with shade being cast on your roof. This can happen for several reasons, but the outcome is always the same, reduced production. When looking to go solar, look at your roof and see how different factors may affect how much sun it gets[1]. Things to look out for are:

  1. Trees – Perhaps the most common issue! Trees can cause a great deal of shade on your home daily. This can stop your panels from performing optimally. We (and other solar providers) may suggest removing trees if they will affect your energy production.[2]
  2. Your Roof – The sun’s angle during a particular time of day can cast a shadow on different parts of a roof, like a chimney or a dormer.[3] It’s also important to determine which direction your roof faces, as some are more favorable than others.
  3. Clouds – We can’t talk about shade without mentioning clouds, but there’s good news on this front! Clouds still allow some sunlight to go through but note your panel production will be lower than a sunny day. At the same time, you don’t need to worry about clouds affecting your everyday production.[4]

Regular tree maintenance is crucial to ensure your solar panels are working at their full potential. Overgrown branches can obstruct sunlight and reduce the energy efficiency of your system. Even if tree removal isn’t necessary, regular pruning and trimming can help maintain the right balance of shade and sunlight. Here, professional help with tree maintenance, you can count on the outstanding services from VistaTree. This can prevent unnecessary wear and tear on your panels, extending their lifespan and improving performance over time.

The Slope of Your Roof

Believe it or not, there is a bit of math involved when you are looking to get solar panels on your home. The best position for your solar panels is a roof facing “true south” with a tilt of between 30 and 45 degrees. This will give you the best results for production. Solar panels produce the most electricity when placed perpendicular to the sun. In many cases, this angle is the latitude of where you live.[5]

Age of Your Roof

Lastly, how old is your roof? What does the wear and tear look like? Are there holes or lifted shingles? These are just a few questions any homeowner should be asking when considering adding solar panels to their roof. Solar panel systems are built to last anywhere between 25-40 years, so you will want to make sure your roof is in good shape and will not need to be replaced or repaired.[6]

Alternative Options Provided by Momentum

While many homeowners choose to install panels onto their homes, there may be some who either do not have the option to put panels on their roof or simply don’t want to. The best part of working with our team of solar specialists is that we can custom-design the perfect solar panel array for your home and provide alternative options.

Work with Our Dream Team

Building a greener future is easy when you work with Momentum. Our team puts in the work, time and effort needed to make your transition to clean energy seamless.

For more information, please call our dedicated team today at 1-888-MOMENTUM.

[1] https://news.energysage.com/solar-panels-work-shade/

[2] https://news.energysage.com/solar-panels-work-shade/

[3] https://news.energysage.com/solar-panels-work-shade/

[4] https://news.energysage.com/solar-panels-work-shade/

[5] https://news.energysage.com/solar-panel-performance-orientation-angle/

[6] https://news.energysage.com/is-my-roof-even-suitable-for-solar/

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