Steps to Go Solar
Step 1 – Make sure your home is energy and water efficient
Replacing incandescent bulbs as well as making other energy saving changes and upgrades can lower your costs even further. Items such as hot water heaters, air conditioning units, window treatments, insulation, are all items that your Ambassador Energy representative will evaluate. You will get a solar needs estimate based your planned electricity demands, not your actual, current usage.
The Economic Stimulus Bill signed into law on February 17th, 2009 has resulted in several important new incentives and measures to stimulate energy efficiency and solar, wind and other renewable energy development, manufacturing, installation and operation in the United States.
Tax Credit Cap eliminated for Solar Electric (PV), Wind and other Energy Efficiency systems: The Residential Energy Efficient Property Credit is a non-refundable energy tax credit to help individual taxpayers pay for qualified residential alternative energy equipment, such as solar electric (PV) systems, solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property.
Tax Credit Cap eliminated for Solar Water heating systems: The $2,000 cap on the 30% Federal Tax Credit for solar water heating systems has been removed. Solar water heating systems, other than those for pools or spas, are now eligible for a full 30% tax credit against the solar system’s cost.
Extended Bonus Depreciation: Last year, Congress temporarily increased the amount (50% of the cost of capital investment) that small businesses could write-off for capital expenditures incurred in 2008 to $250,000 and increased the phase-out threshold for 2008 to $800,000. The bill will extend these temporary increases for capital expenditures incurred in 2009. Accordingly, until the end of 2010, small business taxpayers are allowed to write-off up to $125,000 (indexed for inflation) of capital expenditures subject to a phase-out once capital expenditures exceed $500,000 (indexed for inflation). (Div. B, Sec 1202, p. 74)
The Energy Star program also has information related to tax credits for Consumers (Home Improvements, Cars, Solar Energy Systems, Fuel Cells), Tax Credits for Home Builders, Tax Credits for Appliance Manufacturers, and Tax Deductions for Commercial Buildings. There are also several provisions designed to help ease financing of systems, promote training and job creation, manufacturing investments.
There are many state, federal and local incentives available to help pay for the cost of installing renewable energy systems. Here is a list of Database of Grants and Rebates. To help homeowners take advantage of the energy efficiency tax credits, the Alliance to Save Energy (ASE) has created a special tax credits Web site. ASE has also issued state-by-state energy saving tips for 37 states and the District of Columbia, and has published a free consumer booklet of energy saving tips called “Power$mart: The Power Is In Your Hands.” See the ASE Energy Efficiency Tax Credits Web site and Web site for the Power$mart booklet.
Step 2 – Get an estimate and quote in writing that covers all of the bases
What we do at Ambassador Energy is educate consumers of all kinds about the values of solar energy and help them determine if solar is right for them. Once you have decided to Go Solar you will receive a detailed quote from your “Ambassador tot he Earth”, this quote will spell out all aspects of the solar PV installation. The key point is that Ambassador Energy has the technology expertise, experience with roof installations and familiarity with your location.
Ambassador will help you choose the right size PV system by providing an estimate of how much energy (measured in kilowatt-hours) the system will produce in a year based on your historical power usage as well as forecasted usage changes. Your estimate will also include the peak generating capacity (watts) of your solar electric system and the total cost including hardware, installation, connecting to the grid, permitting, and warranty.
Step 3 – Reserve your Rebate
Ambassador Energy will walk you through the process of applying for incentives and rebates and do most of the work for you. You portion of this process will be to sign some paperwork to process the rebate but the work of documenting and filing your rebate is handled by your local Ambassador Energy office.
Step 4 – Obtain a Building Permit
Ambassador Energy will need to obtain various permits from your city or county building department before installing a renewable energy system. You will likely need a building permit, an electrical permit, or both to legally begin installation. Your Ambassador Energy representative will obtain these permits for you, including the price of the permits into the overall system price.
Ambassador Energy Will Not short cut the building permit process. Remember, the building permit helps insure that the grid and your home are safe for everyone.
Code requirements vary somewhat from one jurisdiction to the next. (Most PV-related electrical codes are based upon national electrical code standards.)
If you are amongst the first in your community to install a renewable energy system Ambassador Energy can speed the process along by working closely and cooperatively with your local building officials to help educate them about the technology and its characteristics. If your community has a homeowners association (HOA), you will want to contact them to ensure you file the proper architecture request forms and obtain approvals. Although at times they can make it a difficult they cannot prevent you from installing a renewable energy system.
Step 5 – Net Metering Agreement
Net metering means the utility company charges you the difference between what you consume from the grid and the electricity you generate.
This allows your electric meter to spin forward when electricity flows from the utility into your home (at night and during stormy weather), and backwards when your renewable energy system produces surplus electricity that is not immediately used by your house (during the middle of the day). Most existing utility meters will work for net metering. But, you will need to establish an interconnection agreement with your utility company to get a net-metering account. Ambassador Energy will handle much of this paperwork for you.
This agreement will ask you to demonstrate that your system was installed to certain building codes and electrical standards, prove that your system is insured, and show that your utility has access to a disconnect in case they need to shut your system down to service the grid line repair men need to be kept safe from your system when they are working on the grid.
The interconnection agreement helps make sure everyone’s power remains safe and of high quality and reliability. Net Metering allows you to receive credit for the excess power you produce.
Step 6 – Building Inspection
If a building permit was required, after your system is installed your local permitting agency, usually a building or electrical inspector, needs to inspect and sign off on your system.
If you have a grid-connected PV system, in most cases your utility company must inspect your system before it is turned on. Depending upon the inspection, your system may need corrections or modifications to satisfy the inspector’s requirements. Corrections are fairly common in the construction business, so don’t be alarmed if they are requested of you and your installer.
A copy of the building permit (if it was required) showing final inspection sign off, homeowners insurance, and (if installing a grid-connected PV system) a recent utility statement showing electrical service at the installation location may be required to obtain a rebate from your utility or other funding agency, and for warranty programs.
Step 7 – Utility Inspection
As part of your Net Metering agreement, your utility company may require that they inspect your renewable energy installation before you turn it on and connect to the grid. Details are provided by your utility company and are usually provided in a Net Metering Agreement. Ambassador Energy will be there to help you with this inspection.
Step 8 – Insurance and Warranty
You will want to add your system to your homeowner’s insurance policy, to protect this valuable asset. Contact your home insurance agent. You will also want to send in your equipment warranty cards to maintain proper warranty coverage and be notified of any future updates or service alerts.
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