@peabagger/everyone - can you elaborate on how the credits work?
Im actually intending to look into starting the process on solar in January but it would be good to know more going into it outside of my own research.
Let's say the solar installation costs $25,000. Am I getting credits that directly reduce that cost, or are they more tax credits I can deduct on my 2022 taxes say. How are the rates on solar loans? I couldn't buy it outright but I could pay it off in 3-5 years.
Im familiar with how the monthly billing would work for using more/less than the array would supply.
Also im curious about potentially adding batteries to my system. I live in an area that loses power frequently. I think we've lost it like 6-7 times already this year for longer than an hour...once was 2 days. My house is entirely electric so having a backup that isn't a noisy/dirty generator would be nice.
My house gets tons of sun and has a gambrel roof. Its south facing so I assume the panels would need to be on the top flatter section, the steep section is a bad angle.
I guess the big question is how much I will be spending upfront so I can prepare. I know that in the long run its a huge win.
Other questions: how does one deal with snow? We get a fair amount here. Do you just let it melt naturally? It seems they last about 25 years give or take...then the panels just need upgrading? What about damaged panels, are they covered by insurance or I just buy them?
Thanks everyone for sharing.
The federal credits are fairly straightforward. They are tax credits, not deductions, so do your taxes in 2022 then figure out what you owe and deduct the value of the credit. If you are getting a check back from the IRS it goes up the amount of the credit as long as it doesnt exceed your total tax liability. Remember if you are working the fed takes out a bunch of money through withholding so that is a big part part of your tax liability. So if using 25 K multiply by 22% which equals $5,500. As long as you owe the IRS $5,500 including all the taxes withheld over the year you are all set. If someone is living on low income like social security with minimal tax liability its a different story but for most working folks who own a house, probably not an issue. No need to itemize, it works with a standard deduction. If you dont want to wait until 2022 to get your money, you can increase the number of exemptions you claim on your W4 form which reduces the amount taken out of your paycheck every week and get the credit back slowly over 2021. Its legal but if you have complicated taxes probably not a great idea.
An important thing to note is the IRS gives a lot of flexibility on what can be included in the system installation cost but very little guidance. Thats where the standard disclaimer comes in about seeing your tax advisor. Some folks push it but given the very low odds of an audit they take the chance. Most resources agree any expenses directly related to the cost of installing the solar. Dependent on the size and age of your electrical panel you may need a new one, that generally is regarded as part of the installation cost. If your roof under the panels is old, most resources agree that you can claim the cost to replace the side of the roof impacted by the install. Where its grey is charging the other side of the roof. If you need trees cut down due to shading, thats generally regarded as part of the credit.
I would suggest you pick up a book called Solar Power Your Home for Dummies, there is an older version floating around on the internet or you can buy one from any online bookstore. Read it and a lot of the technical should make sense.
The optimum panel angle varies by location. The rule of thumb is fixed panel should be located at an angle equal to your latitude. So if you are at 40 degrees latitude mount the panels on the roof closes to 40 degrees off of vertical. This assume that you have perfect sun. Stripes of horizontal shadows just a few inches wide can shut down any panel. Vertical stripes are nto as bad , but many folks reroute their stack vents under the roof up to the ridge to get rid of their shadows and charge it to the tax credit. A chimney obviously is an issue. Fire codes also require at least one strip of roof on either side of the panels to climb up to the ridge poel and some clearance along the ridge so the can chop a hole in your roof to ventilate the house if there is fire. They may let you get way with panels all the way to the ridge line if the back side is clear but thats a local decision.
Yes snow sucks, I get plenty of it north of you. If the panels are steep, the snow is less prone to build up but even my pole mount panels at 30 degrees off vertical still get snow build up. My roof panels are shallow and they get covered with snow for much longer times. I can rake them if I really want to. They do melt off eventually and if you can get a roof rake up to them you can modify the rake to have a soft edge with piece of stiff foam and rake them. Like a metal roof, if snow builds up, when it lets go, it usually comes down in one big lump so make sure your landscaping and house exits are protected. You can have snow hooks installed but that means it takes lot longer to melt off.
If in doubt buy a couple of spare panels. If they are damaged down the road its highly unlikely that anyone had the correct size spare as they are always changing. They are quite durable but a baseball could smash one. They are rated for hail. Most panels unless they are second tier or have defects will last 20 plus years. No one really knows as consumer panels have only been around for about 25 years. Most are still cranking out power but a bit less due to degradation although usually the degradation is less than the manufacturer claims. Most commercial systems are regarded as financially obsolete in 20 years but its likely they are fine. What usually goes is the electronics and they usually need upgrading once in the 20 year life. You can buy extended warranties to cover them for 20 years but the question is if the guy who sold you the warranty even going to be in business?
As for how much it depends on how big. You need to add up your power usage for a year and then go on the web and find the PVWATTs site and plug in your house information making a guess on your panel angle. it will calculate your potential production for a year and then you play with it until you just about match your future energy use after you have done all your energy savings. My normal guess is 4 KW of panels on the low end and 10 KW on the high end,. Now multiply by a range of $2 to $3 an installed watt and that is your budget not included things line roofs and electrical panel upgrades.
Odds are your local utility will offer more incentives but as I said they are changing. This website may get you started for Mass specific.
Database of State Incentives for Renewables & Efficiency® - DSIRE (dsireusa.org)
Batteries are really not cost effective at this point unless you get a big incentive from someone. A cheap Harbor Freight generator adn a couple of gas cans is far better investment. Its likely that when it start to make sense your system will be able to be upgrade to use them but I would hold off for now.