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The sun has the power to generate enough electricity to keep your home sufficiently powered with the help of some essential technology. If you’re considering embracing solar power as your primary source of electricity, understanding how it works can help you determine how much of a smart investment it may be for you.

Solar Panels

The sun’s energy is converted into usable electricity through the use of solar panels. Panels can be placed on the ground if your roof isn’t able to safely support the weight. The most common type of residential panels consist of photovoltaic (PV) cells.

Inverter

This device is needed to convert the direct current (DC) the PV cells collect into alternating current (AC) that can be used in your home. Make sure you have a quality inverter so you’ll be getting the maximum possible power from your panels, which translates into increased energy efficiency.

Electrical Panel

Often referred to as a “breaker box,” this device is needed to transform the AC electricity from the inverter. This is how the power is delivered through the circuits and wires in your home.

Utility Meter

A meter will be necessary to keep track of your energy usage. It will move backwards when your solar system generates more power than what’s being used. This excess power is used to offset times when it’s cloudy or dark.

Connecting to the Grid

Having a solar panel doesn’t mean being totally free of the grid. You’ll still need to tap into your local power grid to compensate for times when you need more power, often at night. Storage of solar energy from during the day can offset costs. The average annual savings with solar energy for homeowners is about $600. Some states offer tax credits and you may be eligible for a federal tax credit as well. You’ll also want to consider whether or not you lease or buy residential solar panel systems and factor in how long it will likely take to recoup your investment.

Learn more about how solar power works and how much you can save by going solar when you call 1-855-45-COAST today. Our energy specialists will answer any questions you have about installing, leasing or buying solar panels in San Diego.

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Have you been thinking about making the switch to solar energy? Did you know there is a tax credit available that can reduce the overall cost of your solar installation?  If you want to take advantage of these Federally offered savings, then now is the time to start planning your solar installation before this tax incentive goes away!

The Federal Solar Tax Credit

Also known as the Federal Investment Tax Credit (or ITC), this incentive for renewable energy allows for solar customers to deduct 30% of the cost of their solar installation from what they owe on their federal taxes. It also allows for the rollover of any unused deduction into the next year, if you owe less on your Federal taxes than what the full 30% covers.

But at the end of 2019, that percentage begins to sunset until it disappears for residential systems entirely in 2022. If you have been thinking about going solar, 2019 is the year to do it!

Here’s what the current timeline looks like for the disappearing federal solar tax credit:

• 2019: Tax credit remains at 30% for residential
• 2020: Tax credit reduced to 26% for residential
• 2021: Tax credit reduced to 22% for residential
• 2022 onwards: Tax credit reduced to 0% for residential

How To Get Your Solar Tax Credit

Deducting the cost of your solar installation is relatively easy. Simply save all your receipts, then fill out an IRS Form 5695, then add it to the usual 1040 form when you file your taxes for the year. For every $10,000 you spent on your solar installation, you can deduct $3,000 from what you owe the Federal government!

The State of Solar in California and Florida

Since Renew Financial helps homeowners in California and Florida to spread out the initial cost of their solar installation over flexible terms through their proprietary PACE program, here are a few things you should know about the state of solar in your respective home-state:

Solar in Florida

The Florida Public Service Commission recently ruled to allow solar installers to lease solar arrays to homeowners. This indicates that solar is finally on the rise in the Sunshine State, and will continue to get cheaper as more solar panels begin to pop up on your neighbors’ roofs.

Solar in California

First of all, California is ranked #1 in the country for installed solar energy, but there is no sign it will slow down anytime soon.  California’s Building Standards Commission will require any new buildings of homes built after 2020 to have solar panels installed (exempting homes that are primarily shaded). Solar energy is slowly becoming the new standard — so the earlier you can have your system installed the more you will save in monthly energy costs.

Financing Your Solar Installation with Renew Financial

Solar energy is the next step in renewable home electricity, but you should have to take out a second mortgage on your house in order to pay for the necessary upgrades. With Renew Financial’s CaliforniaFIRST andRenewPACE programs, you can finance the cost of your solar installation over flexible term lengths, as a line item on your property taxes. It really is that simple!

So don’t wait for the federal incentives to disappear, and don’t miss out on another day of free, renewable sunshine that could be powering your home and reducing your energy bill. Whether you’re in Southern California, Bay area, Florida’s Panhandle, or all the way down through Tampa and to Miami, Renew Financial has an easy to understand financing program so that you can take advantage of solar energy as soon as possible.

Apply now and finance your solar installation with Renew Financial, the PACE financing experts.