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.
What are the costs, incentives & savings?
The costs of going solar depends on system size, location, and installation type, but for a typical residential setup, our costs range from $15,000 to $40,000 before incentives.
The costs of going solar depends on system size, location, and installation type, but for a typical residential setup, our costs range from $15,000 to $40,000 before incentives.
The federal tax credit for renewable energy systems allows homeowners, businesses, churches, and non-profits alike to benefit from a 30% income tax credit or direct payment in the case of non-tax paying entities, reducing the initial investment substantially. Virginia also has an active SREC market, with most solar owners averaging around $300/year in earnings from selling their SRECs. Solar owners also benefit from Virginia’s strong 1:1 net metering policy, which allows you to send excess power back to the grid and store it for future use.
The cost savings of going solar are significant over time. By generating your own electricity, you reduce or even eliminate your monthly electric bills, saving thousands over the lifespan of the system (25+ years).
Is my house/yard good for solar?
Baseline offers site assessments that allow us to thoroughly analyze your home and property’s solar potential. Our team will consider both roof and ground-mounted options, focusing on your preferences and the areas of your property that receive the most consistent sunlight throughout the year.
For roof installations, south-facing sections generally capture the most sunlight and are ideal for solar panels, but east, west, and even north-facing sections can also be effective depending on your property’s layout and shading.
Ground-mounted systems are another great option. For these, we look for open, unshaded, and gently sloping areas near your home to ensure high efficiency.
Is the federal income tax credit a rebate?
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.
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 5695 along with your return. Solar panel and battery installations qualify for a credit equal to 30% of the total project cost.
Non-taxed entities benefit from the same 30% federal incentive, the only difference being that since these groups don’t pay taxes, their benefit is administered in the form of a direct payment. Direct Pay recipients can find instructions for filing
here.
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.
What is net metering?
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.
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.
For further reading, check out
Solar United Neighbors’ guide to net metering.
Do I have to install batteries?
Most solar panels are installed without batteries and primarily serve to provide renewable energy and reduce electric bills. Batteries can be added to the system to provide backup power during outages and to provide some advanced self-consumption and time of use features. Batteries do add significant cost to the project and require periodic maintenance. Our team can help you determine if batteries are a good choice for you.
Will I have power during an outage?
Unfortunately, no, solar will not power your home unless you’ve also installed batteries.
Do I need to replace my roof?
The typical lifespan of an asphalt-shingle roof is 20-25 years. We recommend replacing your roof before going solar if it has less than 7 years of useful life remaining. During a site visit, we can help you determine whether or not your roof needs replacing before going solar.
If you need to replace the roof after you’ve gone solar, we can remove and reinstall the panels and mounting structures for a fee.
What if my HOA has restrictions on solar?
Under Virginia’s Solar Freedom Act, HOAs cannot outright prohibit the installation of solar panels. However, the law states they can impose “reasonable” restrictions concerning the aesthetics, location, or size of the installation, as long as these restrictions don’t increase the cost of the installation by more than 5% or reduce the energy production by 10% or more. Often the restrictions do, and we can provide data regarding this for each specific site.
Many HOAs in Virginia still require homeowners to submit a proposal and get approval before installing solar panels. This usually involves details on where the panels will be placed and how they look. We can design systems that fit most requirements and are happy to work directly with your HOA to submit paperwork on your behalf and make sure the project is compliant.
Does Baseline hire subcontractors to do any of their work?
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.
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.
We do 99% of installation work with our in-house team. However, given the diversity of situations we encounter, on occasion we may partner with another trade professional to bring in specialized skills that may be required on a unique project. For example, when installing solar on a slate roof, we brought in the roofing contractor to work with us to make sure we protected the roof.
Do I have to sign up for SRECs, and will they affect my net metering?
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.
How will I know whether or not my solar is working?
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.
What if I am having problems with my solar?
We have a dedicated service team that is ready to help if you have problems with your solar or batteries, whether you went solar with us or with someone else. They provide expert diagnostics and repairs and can also assist with warranty claims.
I was thinking of installing an EV charger. Can Baseline do that?
Yes! Give us a call at 540-552-1511, or follow this link to get started. EV charger installs may quality for a tax credit.
What about upgrading my electrical panel?