Considering Residential Solar for Your Home
Why Get Solar?
Client Experience Associate Alejandra Gonzales has solar panels installed at her home, and is a super solar advocate! She wrote this blog post to encourage others to join the movement away from fossil fuel.
There are lots of great reasons to pursue residential solar!
Having your own array democratizes and localizes energy generation in the grid (buying less coal plant electricity from Montana!)
Renewable electricity generation can be a hedge against rising electricity prices in the coming decades
Potential Tax Credits and accessible Solar Financing
After Solar, prioritize electric appliances! Deep electrification reduces the use of natural gas and long term fossil fuel emissions
As an aside, did you know your gas range is very bad for your indoor air quality?
The Oregon Homeowner’s Path to Residential Solar*
*Includes tips for finding your path towards solar in states across the U.S.
Step 1: Establish your eligibility
According to Energy Trust, you must be an Oregon customer of Portland General Electric or Pacific Power and work with an approved Energy Trust solar trade ally contractor to be eligible for incentives.
If you are not in Oregon, contact your utility to determine whether your home is eligible for solar net-metering, what incentives there are in your area, and what other resources they have to offer.
Be sure to ask if they offer a list of preferred contractors to share with their residential customers. If your utility doesn’t have contractor referrals, or if you are feeling friendly, ask your friends and neighbors with solar panels about their experience with their installer.
Federal + State Tax Incentives: To get an idea of what to expect in your area, DSIRE is a national database of incentives by State.
Step 2: Evaluate your home for Solar
Get at least 2 proposals from an Energy Trust Solar Trade Ally or a reputable contractor in your area. You will learn:
About your home’s solar access
Your potential eligibility for federal and state incentives (this is a great time to loop in your CPA!)
Step 3: Select your contractor + talk with your CPA
Once you receive proposals from two or more contractors, the choice is yours—for some tips from Energy Trust (Oregon & SW Washington’s non-profit renewable energy advocate) see their FAQ on choosing a solar trade ally and comparing bids.
You will decide what kind of system is optimal for your site and electricity consumption. System designs will vary and you can make decisions about the following factors based on your priorities:
Location of panels
System size
Number of panels and efficiency
Share the bids with your CPA! They will provide feedback on your specific tax impacts.
Step 4: Select your financing options
Your allied contractor will share solar-specific financing options.
Institutions such as Generation Credit Union or Puget Sound Cooperative Credit Union provide solar-specific loans that can be re-amortized using your tax credit proceeds.
Work with your Financial Planner to determine if a solar loan, a HELOC, cash, or other options are the best way to pay for the solar array and installation.
Step 5: Claim your tax credits when you file your taxes
Send your CPA your final costs and installation and activation dates. There is the potential for a 26% Federal tax credit in 2022, which drops to 22% in 2023, and is scheduled to phase out in 2024. State incentives exist, but vary by installation type and eligibility criteria.
This post was inspired by 5 Steps by Energy Trust of Oregon, with thanks to Kelli Wolford at Elemental Energy and Mark Tabor at Tabor Accounting Group for their input!
