Since the beginning of 2006, the “Solar ITC” or Investment Tax Credit has helped yearly residential and commercial solar installation increase by 1600%. In 2015, showed the largest increase for installed solar, and within the next year it is expected to double.
Solar ITC Extension
Just this last year, the solar ITC gave a multiyear extension, which provides a business certainty to project investors and developers. Right now, the ITC has a 30% reduction for income taxes based on the solar investment. This extension provides a tax credit based on the invested eligible property through the projects that have started constructions before 2019. This is when the ITC will drop to 26% for 2020 and then 22% in 2021. Once 2023 hits, the residential credit will then drop to zero while the utility and commercial credit will drop to 10%.
Because of this extension, the solar prices are expected to keep falling. Solar power happens to be one of the most versatile forms of electricity and can be used anywhere. It has a lot of potential for fighting climate change as well removing poverty through rural electrification. Additionally, while the solar prices fall, the installation and technical efficiency will climb as the ITC causes job creation and growth within the US.
“Residential solar systems are available in different sizes, ranging anywhere from ‘size 3’ to ‘size 8kW’, and they are going to cost you between $15,000 and $40,000 dollars.” Power Solar Phoenix
Although this extension is a great place to start, the question is if the government should continue to expand and extend the solar incentives to try to attract more commercial customers?
The answer is a big “YES”. There are more and more businesses that want to have a competitive advantage over global counterparts, and the solar ITC helps to give installation savings with a tax credit but also energy savings..
Roofing & Solar System Installation
Generally solar systems are installed on the roof tops of homes and businesses. Clearly the first step to prepping a roof for solar power is to make sure that it is structurally sound and all of the roofing material is in good condition. Roofing systems that are highly reflective may be added as part of your solar ITC, but only in the case that the highly reflective roofing is more costly that a conventional roofing system. Although, when it comes to the roofing industry, the solar ITC will need to establish parameters that are for roofing installation on what type of roof would be needed for solar installation in order to get that particular incentive.
The roof will need to be in good condition to start with before the installation. It needs to have the right insulation and membrane thickness to support installation. If the roof doesn’t meet these types of conditions, then the roof will need to be replaced with a system to support it. You won’t be able to use a cheap roof or just not replace the roof and install a solar system with the mindset of getting full benefits. You will eventually run into issues with leaks, but it will cause you to reinstall the whole solar system once you replace the roof.
The solar ITC is a great way to create jobs and move towards having clean energy, but as the solar energy industry increases, so do the stipulations for having continued success.
Roofing Installation & Repair in the Phoenix Valley
Right Way Roofing has the right tools, knowledge, and understanding of all things roofing. If you have a solar system or are thinking about getting one installed Right Way can help you make sure that the roofing is right before and after the solar system is installed to avoid leaks. Use our contact form or give us a call today.