Going solar is a big decision — one that you really don’t want to rush when deciding who to go solar with. The reasons and benefits of going solar are endless, which we’ll cover in other articles, but the reality is that 2019 might be the best year for you to go solar and to go solar sooner rather than later.
There are four main reasons we believe you should go solar now!
1 – The Federal Income Tax Credit
Also known as the FITC, this tax credit will be stepping down from a 30% income tax credit to 26% in 2020, then to 22% in 2021, and then to 10% in 2022, which will be the last year for any income tax credit for residential solar customers. Commercial customers remain at 10% (we’ll cover that in another article too). Due to this aggressive step-down and eventual sunset of the FITC, customers in the know are going solar this year and are going now to ensure they get installed this year.
In order to apply for the tax credit on your 2019 tax return, it is our belief your system needs to be installed and interconnected to the utility grid in the year you want to file your tax return. We are not tax advisors and recommend you speak with your tax advisor.
Because of all of these factors, you are going to want to get in line for installation now. You don’t want to be in line waiting and hoping to get installed by the end of the year. SEIA estimates that this will be the year with more solar installations than any other year.
This brings us to…
Reason 2 – Supply Chain Issues
The growth in solar this year, due to the step down of the FITC, is inevitably going to cause supply chain issues along with installation capacity issues later in the year. There is a finite amount of installers with a finite amount of capacity to install solar systems, and their calendars will be packed every day. Now is the time to get your spot reserved!
Think about going to Disneyland with a substantially discounted park entry rate that will expire at the end of the day, wanting to ride the newest ride at the park, and getting in line to ride the ride 10 minutes before the park closes — yikes! Unfortunately, many solar customers are going to have this feeling starting in August and September when they finally decide to go solar. There will be no guarantees for customers who decide to go solar that late in the year.
The other big issue is going to be supply chain issues as the influx of customers wanting to go solar will cause scarcity of solar products. In order to reduce your chance of missing the best solar opportunity in history, and to ensure you get the best products for your investment, you should go solar now.
Reason 3 – Consumer Interest Rates
Interest rates are on the rise, as referenced in this article. We currently have solar loans to help you go solar with zero out of pocket costs with interest rates as low as 3.99% APR on a 20 year loan and 2.49% APR on a 10 year loan. However, there’s a possibility these interest rates will go up based on the actions the Federal Reserve is currently taking. Getting approved and signing loan docs now will lock in these rates which help maximize your return on your solar investment.
Reason 4 – Tariffs
Solar panels and inverters are products incorporated in President Trump’s $250 Billion tariff proposal on China. At this time both the United States and China have agreed to delay any tariffs until the end of Q1, but if an agreement is not reached the tariffs will go into place. That will have a direct impact on the current price of solar.
Solar companies today work off very low margins which means they will not be able to absorb the cost increase in their current pricing. If the tariffs are implemented, the price of solar and other common consumer products will go up in price, which is unfortunate for the average American homeowner. In order to reduce your risk of paying more for the same product, we recommend you make these purchases today which will eliminate your risk of paying more later. As the old adage says, a bird in hand is worth two in the bush.
It typically makes sense to go solar for every homeowner and it is our recommendation you go solar now to ensure you have the least amount of challenges possible!
We at Zenernet are ready to help you make the best decision possible and are available to guide you through your solar journey. We are ranked #1 on the ConsumersAdvocate.org website and are a Top 10 residential solar company on BestCompany.com.
Zenernet was founded with the mission to accelerate energy independence for all humankind. Residential solar is a big step in that direction. By making solar compelling and cost-effective for everyday people, we can move toward energy independence for all, one home at a time.
We’re ready to be your guide on the solar journey. Ready to join us?