DEFEND THE ITC

As of right now, the Investment Tax Credit is set to “step down” at the end of 2019. Read our blog to learn why it’s important that we defend the ITC and have it extended.

WHAT IS THE ITC?

The Investment Tax Credit (ITC), otherwise referred to as the Federal Solar Tax Credit, allows you to deduct 30% of the total cost of solar panel installation from federal taxes. This tax credit applies to both residential and commercial systems alike. Additionally, there is no cap on the value of the systems.

The ITC was established by the Energy Policy Act of 2005 and was set to expire at the end of 2007, but due to its popularity and effectiveness, Congress has extended it several times. Currently, it is set to gradually expire starting in 2019 and will cease to exist for residential systems by 2021. See below for a diagram of the changes:

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NET ENERGY METERING 3.0 INFORMATION

Net Energy Metering 3.0 (NEM 3.0) is the incoming law created by the California Public Utilities Commission (CPUC). The new tariffs and fees will impact both residential and commercial solar systems built in California. 

As this notice is posted in November of 2022, the Proposed Decision from the CPUC outlining the proposed NEM 3.0 terms is expected soon. This comes after a year’s delay. Once the new agreement is finalized and passed into law, there will exist a designation of the deadline under which new systems will continue to qualify for NEM 2.0 rates. 

The new NEM 3.0 rates will be designed to lower the value of electricity during the daytime hours, when solar is producing, and increase the value of electricity during the evening hours, when solar homes and businesses purchase electricity. In short, NEM 3.0 will create a “sell low, buy high” proposition to new solar system owners. 

To Californians looking to install a solar system on their home or commercial building, the NEM 2.0 rates will be preferred. As of this post, the solar industry does not know the details of how different the NEM 3.0 rates will be from the NEM 2.0 rates. 

Please use the HES Solar website as a resource to learn more, and please take our offer to speak with an HES Solar Energy Consultant at no obligation.

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Robert Laverty

Senior Energy Consultant, Residential

Robert Laverty joined the HES team in the summer of 2018, bringing his ten years of solar design experience and his Bachelor’s degree from the University of Puget Sound with him. Robert is dedicated to finding solutions to help families produce and store electricity in order to reduce their reliance on grid power as well as help reduce their household’s carbon footprint. Robert’s experience as a newspaper editor as well as his involvement with the sustainability-focused Rocky Mountain Institute drives him to constantly seek out innovative ways to meet energy needs through renewable resources as well as helps him share those ideas with Southern California homeowners. When not at work or volunteering time with his church or community, Robert spends time with his wife and two sons or pursues his passion of fly fishing.
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