Lock in 2020 Solar Savings
Definite Savings > Unpredictable Rate Increases
For business owners looking to gain more control over their finances and predictability in their utility bills, now is the time to explore solar opportunities. In addition to protection from continual rate increases, investing in solar now helps secure the current Federal Investment Tax Credit (ITC) of 26%. Owners can “safe harbor” this credit by making a deposit this calendar year. For those who choose to wait, the credit will drop to 22% in 2021 and 10% in 2022, where it will remain indefinitely.
The year 2020 does have a bright spot: this is the year to secure the most savings on solar.
The Future of Net Energy Metering
Net Energy Metering (NEM) allows those with solar systems to earn financial credits on their utility bills for any surplus solar energy they generate, offsetting the cost of energy usage. There are many benefits to the current NEM program, NEM 2.0.
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Customers receive credits for surplus energy at full retail value.
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If a business operates seasonally, it can bank off-season solar credits to be used when in-season, allowing for a drastic reduction in utility costs.
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At the end of the year, any balance of surplus energy is “trued-up” at fair market value.
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Through NEM aggregation, eligible customers can collect the electricity generated from multiple meters, and credits can be shared among property that is “attached, adjacent, or contiguous to the generation facility.”
NEM 3.0 – the next iteration of California’s solar program - will soon begin proceedings for eventual approval by the California Public Utilities Commission (CPUC). NEM 3.0 does not promise the same benefits as the current program. In effect as soon as 2022, net metering could undergo restructuring and impact the value of the energy a solar system produces. Potential policy changes to net metering may include discontinuing meter aggregation, reduced value of solar credits for surplus energy, as well as moving to a monthly true-up vs. annual true-up. Any one of these changes would have a significant impact on solar’s ability to reduce your bills.
Not to worry though, as installing a solar system now would allow for grandfathering protections, locking in the benefits of the current NEM 2.0 program for 20 years.
Managing the Dust
of Summer For those who already have solar, keeping the panels clear of dust is key to making the biggest impact on utility bills. Manage weeds and deter birds, as well, making sure they don’t obscure panels. Read our quick guide to cleaning and maintaining a solar system. It’s a simple way to get the most out of a system.
