We love solar and think it’s a good deal for our customers, community, and environment. We want our customers to understand how the technology and incentives work, and also a little bit about our company.
Q. What is net metering?
A. Net metering is a billing method that utilities use to allow you to essentially run your meter in two directions. The way it works is, the energy that your solar produces is first used to energize your home. If your solar is producing more energy than your home needs, that excess energy is sent back to the grid and “banked” as kWh credits. At night, or on cloudy, darker days, when your home needs more energy than your solar panels are capable of producing, energy is pulled directly from the grid, and the net metering credits that were banked are used to offset that energy on your electric bill.
A. No, the federal income tax credit is not a rebate. It is also not a refund. It is instead an income tax credit, which reduces the amount of federal income tax you owe. For example, if you owe $15,000 in federal income tax and claim a $2,500 tax credit, your income tax liability (which is the amount you owe), would be reduced to $12,500. This is a nonrefundable tax credit, meaning you won’t receive a refund for any portion of the credit that exceeds your income tax liability. However, if the credit exceeds your liability in a given year, the unused amount can be carried forward to future years.
For solar and battery installations, the credit must be filed for the year that your system was installed and energized. You claim it by filing IRS Form 5695along with your return. Solar panel and battery installations qualify for a credit equal to 30% of the total project cost. Baseline Solar does not employee any tax experts, and we ultimately advise our clients to consult a tax professional for questions beyond the information presented here. The Department of Energy has also published a helpful guide on this subject.
Q. Will I have power during an outage?
A. Unfortunately, no, solar will not power your home during an outage, unless you’ve also installed batteries.
Q. Should I install batteries so that I have power during an outage?
A. This is entirely up to you but please note, adding batteries to a solar installation significantly increases the cost of a project.
Q. How will I know whether or not my solar is working?
A. You’ll know your solar system is working by monitoring energy production through the inverter or solar monitoring app. We will walk you through all of this and make sure you have access to your online monitoring portal after we install and energize your system.
Q. Does Baseline hire subcontractors to do any of their work?
A. Never. Our company prides itself on having a highly-trained, dedicated, local staff that ensures top-quality service on every project. This guarantees that our team consists only of employees who share our commitment to excellence. Each team member undergoes extensive in-house training, and we invest in our employees by paying for their continuing education and certifications. Our dedication to training and development sets us apart and keeps our team up-to-date on the latest industry advancements, safety standards, and best practices.
Q. Do I have to sign up for SRECs, and will they affect my net metering agreement?
A. No, SRECs are totally optional, and no, SRECs will have no effect on your net metering agreement. For more information on SRECs, check out our blog post here. Some of our customers prefer to get on the phone and have a quick conversation about them. If this sounds like you, please give Baseline’s SREC wrangler Lindsay a call anytime at 203-685-9070.
Q. I was thinking of installing an EV charger at my house. Can Baseline do that?
A. Yes! Give us a call at 540-552-1511, or follow this link to get started.
