In 2022, solar panels cost next to nothing to install and have incredible tax incentives for both residential and commercial properties. Solar energy is a powerful source of energy that can be used to heat, cool and light homes and businesses. Installing solar panels for your commercial building helps improve your facility’s energy efficiency, while decreasing your carbon footprint and your reliance on fossil fuels. Residential solar benefits also include lower carbon footprints, lower electricity bills and can raise your home’s value.
Are you Paying for Xcel?
According to the Denver Post, “state regulators voted June 22nd, 2022 to allow Xcel Energy-Colorado to recover hundreds of millions of dollars from customers for costs from a 2021 winter storm, but knocked $8 million from the $508 million sought after criticizing the utility’s actions before and during the frigid weather.
The costs stem from a February 2021 storm that brought record cold temperatures and soaring natural gas prices from Texas through the Rocky Mountains to the Midwest. Colorado didn’t experience the widespread power outages other regions did, but Xcel Energy and other utilities saw natural gas prices skyrocket in the scramble to keep the heat and lights on.
Regulated utilities like Xcel Energy have the right to recover the costs of providing service. The PUC considers a so-called ‘prudency standard,’ which examines whether a company’s actions were reasonable given the things it knew or should have known at the time.
For the most part, the administrative law judge decided Xcel Energy’s actions were prudent. But the decision criticized the company for not communicating with customers about conditions so they could have reduced their use to blunt the expense.” In short, don’t let big energy companies profit at your expense.
Solar energy is sustainable, renewable, and plentiful. As the cost of using solar to produce electricity goes down each year, many Americans are increasingly switching to solar. Xcel Energy will rebate residential and commercial customers per watt of solar panels installed up to 10,000 watts (or 10 kilowatts). Also as part of the program, the company will purchase Renewable Energy Credits (RECs) generated by customer systems per watt.
When you multiply that by the national average electricity rate of $0.14 per kWh, you’ll find that the typical American family has a monthly electric bill of around $125. This means if enough solar panels were installed to cover this electricity usage, the average household could save almost $1,500 a year on electric bills!
Solar Reviews states, the federal investment tax credit (ITC) – more commonly known as the solar tax credit – is equal to 26% of the cost of installing a solar panel system. So if you pay $50,000 to install a solar power system, your organization will receive a $13,000 credit when it files its taxes. You can learn more about using the solar tax credit for commercial solar installations in this guide from the Department of Energy. States, utilities, and local governments may provide additional incentives for organizations that go solar. Make sure to check what incentives are available in your area.
Panels and Batteries
Solar Energy Systems require 7 main components. The panels, power system disconnects, battery charge controller, deep cycle battery storage, system power system metering, solar power system inverter and the backup power.
Adding a battery to your system is one of the most important considerations for commercial operations today. During power outages your solar system will not produce without a battery, so a backup battery will help avoid blackouts. Commercial solar battery systems produce energy at a lower rate than what local utilities may charge. By installing battery backup systems, commercial operations can reduce demand charge risk due to solar intermittency. Additionally, supplying a commercial battery backup to an existing solar system will enhance the resilience of a building’s power supply.
Solar panel batteries may provide value to homeowners as well. They allow you to store the electricity generated by your solar panels, reducing your reliance on grid electricity. A solar battery will last up to 15 years and the low maintenance and quick installation make solar an easy and reliable energy source.
Tax Rebates and Promotions for Colorado
Solar Reviews discusses the positive impact on the cost people will see with the federal solar investment tax credit, rebates and sales tax exemptions. They state, “If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting. The federal tax credit falls to 22% at the end of 2022. For example, if your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.”
Furthermore, by joining the Solar Rewards program, you’ll be paid on an ongoing basis for the amount of kwh you produce with your solar panels. When joining the Solar Rewards program, you’ll sign a 20 year contract with Xcel giving them your renewable energy certificates. They will then pay you for the first 10 years at a rate of $.07/kwh. On an average sized 6kW system, you can expect to reap about $700 annually or $6,500 over those ten years.
On top of this it is said that Colorado’s utility companies have to meet the state’s renewable portfolio standard guidelines. This means they’re willing to help you put solar on your roof, just for joining the world of electricity generation. In Colorado homeowners and commercial business owners who do go solar do not have to pay a dime in taxes on that value.
Now is the time to look into solar as these incentives are set to expire altogether in 2024. Calculate your savings online today with your own personalized solar savings estimator, Project Sunroof powered by Google Earth imagery. When you’re ready to increase the value of your home, reduce the carbon footprint for your residential or commercial property, gain credits for net metering and upgrade to a reliable, durable and renewable energy system call a professional at Kapella Roofing.