Have you been thinking about a solar panel installation for your home in Rocklin, Sacramento, or Davis? Now is the perfect time to call a California solar provider near you, like Brower Mechanical.
With time-sensitive solar incentives on their way out, projected increases in the cost of energy, the climate crisis closing in, and the potential for major changes to net metering, California homeowners have a lot to gain by going solar in 2022.
2022 Is the Last Year of the 26% Federal Solar Tax Credit
The solar Investment Tax Credit (ITC) is one of the best solar incentives in 2022. The ITC allows homeowners that install solar to claim a federal tax credit worth a percentage of the project’s total cost.
The federal solar tax credit in 2022 is worth 26%. However, the ITC is on a step-down schedule. In 2023, the tax credit will be reduced to just 22% and in 2024 it will be eliminated entirely for homeowners.
In order to qualify for the 26% federal solar tax credit, your solar panel system must be fully installed and turned on by December 31, 2022. If you want the highest incentives possible, there’s no time to wait! Schedule solar panel installation with Brower Mechanical today.
The Climate Needs Clean Energy Now
As environmental concerns around fossil fuel usage continue to grow, the shift to clean energy becomes even more important. The widespread adoption of solar energy production and storage has the potential to lessen the severity of extreme weather events and wildfires. The sooner you make the switch to solar, the better off the planet will be.
Solar Panels Will Stabilize Your Electricity Costs
Relying on the grid for all your electricity needs means you’re vulnerable to volatile electricity rates. Grid-generated electricity prices fluctuate as the cost of gas and oil rises and falls, which means you never know exactly how much you’ll be spending on electricity every month. With a solar power system, you can take charge of your own electricity production and lock in free electricity for the lifetime of your system (25+ years).
California Solar Net Metering Changes Could Affect Your Savings
Net Energy Metering (NEM) allows solar customers to trade the surplus electricity their panels generate during the day for the grid-generated electricity they rely on at night. This makes it possible to completely eliminate your electric bill with solar. Solar net metering in CA has been in effect since 1995 and is one of the best ways to save money with solar panels. The program has been changed once before, and the current agreement is referred to as NEM 2.0.
The California Public Utilities Commission (CPUC) has proposed significant changes to
California’s solar net metering program that would reduce incentives and lead to longer payback periods for solar installations. Changes include:
- Reduced compensation for solar energy sent to the grid
- New monthly fees for solar customers
- Reduced period of eligibility from 20 years to 15 years (for new and current participants)
- Switching solar customers to higher time-of-use plans (this would make solar batteries more attractive than ever)
The changes to NEM 2.0 were scheduled to be put to a vote in January of 2022. However, that vote has been delayed—there is no current plan to bring NEM 3.0 to a vote or decision in the foreseeable future.
Make 2022 the year you switch to solar with Brower Mechanical, the trusted solar installer near you. Call (916) 775-7492 or contact us to get a solar quote.