Solar Tax Credit

What do you know about the solar tax credit? What I am about to tell may surprise you. Every solar professional talks about how the 30% Tax Credit to reduce the cost of your solar installation, but what are they not telling you about this. I will explain…

The Federal Incentive Tax Credit for Solar or ITC is the most touted incentive for going solar. What it does is give you a credit of 30% based on the amount to install your system. For example, if your system was $30,000 you get a credit of $9,000 taken off of your tax liability. One of the key factors in this is it can also be applied on top of state incentives.

The program itself was almost taken away in 2016 and Congress approved an extension that will phase it out, ending in 2022.

Now – 2019 30% 2020 26% 2021 22% 2022 Gone

There is a great bonus to this…if you need to install a new roof the portion that is covered by your solar panels is eligible to be part of the credit as well.

What is not talked about is the fact that you must have a tax liability to take advantage of your ITC. Any portion left after the first year can be carried forward up to 5 years. Basically if you got a refund you probably are not eligible. Many solar companies fail to explain that if you have no tax liability there is no way to use the credit. This is a CREDIT not a REBATE meaning if you don’t have taxes to pay there is no a way to take advantage of it! Now you can change your tax situation with your accountant to find ways to overcome this and if that interests you I highly recommend it.

So, what is your alternative if you do not have a tax appetite?

There are 5 options:

If you are a new homeowner or recently purchased your home you have 6 months to roll the system into your new mortgage through a program called HomeStyle Energy Mortgage. It’s a program alternative to the PACE program.

PACE stands for Property Assessed Clean Energy, this program utilizes your county property tax to provide financing for your system and clean energy improvements. PACE is not in every county so that is a drawback for it as an option.

If you have been in your home for a number of years then you can use the equity that you have accrued to cover your system. This requires sitting down with you local banker to discuss the details. Banks have become very eager to help homeowners use this option.

This loan option may work for some, but not everyone. Getting a home improvement loan has some challenges in qualifying and may have a higher interest rate in comparison to what a solar finance company can authorize you. You should look at all your options just to be sure you have covered your bases.

Just see what your financing looks like without the ITC. The main advantage of this option is that it utilizes a flat rate simple interest plan that tends to be significantly more cost effective.

At the end of the day as an energy advisor I help find the option that works best for you, the most important action is to simply go solar. It gives you a tremendous savings over time and is the best route for your wallet and the environment. Crew makes it simple to go solar, all we need is to look at your energy profile from your electricity bills to make a plan. Email your electricity bill to the address below and I will get back to you with your solar options.

Thanks for visiting, please like and subscribe to stay up to date on the pathway of going solar. Now I want all of you to go forth and spread sunshine.

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Tizzy

There is a new sheriff in town and the renewable energy industry is in his administration’s cross hairs. Funding for climate research is on the chopping block and the coal interests have a prized seat. Everyone is all worked up into a tizzy. How do we overcome and get through this mess? The answer is simple…GO SOLAR!

Climate research has been going on for the last 30+ years and a weather vane of the growth can be seen through the Cornell University study of Dr. Anthony Ingraffea. He has tracked the number of studies since 2009 (slide 31), the growth shows that research has become sufficient to push action. That is exactly why research funding being cut is small potatoes. Based off of all that has been accumulated we can see that going solar is the solution. However, even supporters of that idea have not gone solar (in large numbers). What will more research accomplish? We are at a point of diminishing returns unless there is action. Further research is a countdown to destruction while going solar is a tourniquet that can stop the bleeding.

Coal is the foundation of energy generation and it is being phased out regardless of what the administration says. Natural gas is supplanting it and its ecological damage and potential is even worse than coal! How to deal with this is to basically cut our losses and go solar. There is sufficient space on the roofs of homes and businesses to easily power communities and cities through virtual power plants, bypassing the utility company and starving industry of its lifeline of rate payers, who that are squeezing further. It is truly a double whammy of taking control of our power and halting the funds to fossil fuels.

There are literally millions of supporters backing clean renewable energy. Namely, those in 20 cities which committed to become 100% renewable! (St. Petersburg Florida is the newest to join) The trouble is that less than 0.5% have solar power on their home or business. If the supporters are not taking advantage of solar how can the masses be expected to or prove to industry folks that solar is the future? We need to accelerate the solar revolution through bypassing the powers that be and go solar on our own! It is a relatively simple transition to using clean energy and it is on par with utility pricing, but has an end date to when there is no more payment. Only through action can future research be justified and the backing of fossil fuels be proven to be antiquated. There is even a reward to you for leading others to solar. Take your power back and stop the tizzy through action!

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar After 1

A beautiful sunny day has risen over the sunshine state! Amendment 1 has gone down and an open solar future has come up. To pass it required 60% of the vote and only garnered 50.78%. Had this misleading piece is legislation passed it is believed that it would have opened the door to fees on homes that use solar power. So we have officially been successful with our Yes on Amendment 4 and No on Amendment 1 campaign. Now the question arises, what to do with our victory? The answer is simple…GO SOLAR!

The potential of solar power is tremendous, the 3rd highest in the entire union, living up to that potential is the obvious path to take. How that is done begins with people going solar at home, then on businesses, and finally community institutions. The more ambitious route is to move towards a 100% renewable city like many have begun, Salt Lake City, UTAspen, CO, among others. Like this movement against amendment 1, it’s success rests with the people. Only through grassroots adoption of solar will fulfill the legacy of this victory. People transitioning from dirty fossil fuels to clean renewable solar power.

Making the move to solar is easy, it begins with getting an assessment from a solar professional to identify the solar viability. With that information it can be determined how much solar can offset the power to your home. What makes the great decision to go solar even better is that we reward you or your favorite environmental organization! Each of us reaching out to each other is how we expand our success against monopoly interests that wish to block the sun. Turning our solar support to solar power is how we will change everything.

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Viability

Improving our environment is the critical focus that you have and we all strive to support. The most polluting action we engage in is electricity generated by fossil fuels. Through transitioning homes and businesses to rooftop solar power in Florida we can address this constant stream of pollution. The advantages of solar power are tremendous with the most notable being its impact on the environment. In its use the externalities of spills, air pollution, water contamination, and the bureaucracy that has developed around fossil fuels can be eliminated. CREW is providing the option to use rooftop solar to solar power the sunshine state. The main reason that solar has not become more widely used is that very few have looked into solar viability for them.

Perceptions need to change to fit the new reality that solar is not expensive and everyone can play a key role in it. To explain, there are several factors that need to be looked at for viability, such as the size and alignment of the roof, shading or nearby obstructions, and financial savings to determine how profitable solar is for you. An assessment of viability is no charge because showing how we can help the environment just makes sense. This information will answer the question of what more we can do to build the new model, keep our environment clean, and protect our precious ecosystem.

In the state of Florida we have the 3rd highest solar potential and we will live up to that potential through each building that gets solar. This effort in itself must be protected from special interests that know its capabilities. There are groups that wish to curtail its growth through legislation like amendment 1, that intends to block the sun, which we must vote NO on this in November to maximize our solar future.

To encourage greater adoption and look into viability a donation will be made to support your favorite organization so everyone can further protect all that we enjoy. Everything is streamlined and easy, all that is needed is an address and at least a single utility bill to show how much power can be provided through the rays of the sun. Please, let me know what address you would be interested in for solar viability. I look forward to helping you and Eco-Voice protect Florida’s environment.

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Halves Coals

Coal has been king of power generation for over a century, beginning with steam engines and moving into utility power plants. Natural gas had been the heir apparent to the fossil fuel crown since the 60’s, it even donned the crown for the first time in 2016. Today there is a new contender for the power generation throne in the form of the distributed technology of solar power. On the utility scale solar has reached half the price of coal. Albeit this is on the world market and utility scale. This is quite the achievement and the best part is that it can get even better because solar is not relegated to only utility adoption. It can be installed on homes and businesses!

The installation costs of of solar has fallen over 50% just in the last 6 years. Financing options and investment potentials continue to grow, providing easier adoption across the board. Systems are also becoming more intricate through the addition of storage technologies, which are also becoming more and more affordable themselves, making them more stand alone. Lightening the load on the infrastructure of the utility grid allowing it toe redirect its funds to drop the costs of going solar so it can mimic the world market pricing. The residential and business portions of the power model are looked at separately from the utility scale costs, but have the potential of becoming equivalent to utility power generation through incorporating it as a virtual power plant based on over production capability. Intertwining the cost savings for utilities and encouragement of solar adoption. So the age of fossil fuels is truly waning as distributed power waxes.

At the moment renewable only make up 16.9% of power generation in the US leaving a vast amount of space to gain further affordability as the technology continues to advance. The critical advantage that solar has within this sector is the distribution ability it contains. Since there is no pollution from its use it can be implemented on site, ideally on the unused roof space of buildings, with storage capacity added to it the system it can be more robust and extend its power saving ability into the night hours. An aspect that vitally accentuated in the world market for the developing regions of the African and Indian continents as well as remote regions everywhere. Established grids can take advantage of this through reducing the carbon footprint and alleviating climate damage, as long as they stop legislative blocks to solar. Continuing the monopoly is the single greatest threat to even more affordable power generation, although despite their efforts affordability continues to increase.

In The United States as the pricing is falling and adoption continuing to rise, special interests are making efforts to stifle growth. It is through the tremendous efforts of concerned people that utilities are pushed towards solar and renewable energy. The federal government gives a 30% income tax credit for homes and businesses that go solar and many states provide credits of their own. In Florida Amendment 4 just provided a 20 year sales and property tax exemption widening the doors of the nations 3rd highest solar potential region to truly become the sunshine state. More than these efforts it is the people reaching each other that has fueled its growth, putting investment in solar on par with utility power production. Showing that the trend to half the generation cost of coal in the US will be here soon.

The incentives of achieving world solar power generation cost halving that of coal are a standing testament of what can be accomplished. As more follow the example the installation costs will further lower the barrier of entry and accelerate production savings. The United States is turning towards solar power, meaning that 18% consumption of world energy it takes up will create the biggest attenuator on the production cost drop. There are governmental incentives to push renewable including solar that people are taking advantage, we just need to expand the number of those using them. At the same time keeping the monopoly interests at bay. It has been shown that halving the cost of world’s number one fossil fuel is possible and we can do even better by following the example and  locally add rooftop solar in conjunction with pushing the utilities to install solar instead of fossil fuel power plants.

Go forth and spread sunshine,
Clifford T. Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Legislative Block

Solar power for home use has come a long way from an auspicious beginning as a niche for the super environmentalist, to the leading alternative energy source for residential and commercial buildings. It has grown to point that utility special interests are threatened by it and looking to curb its adoption through legislative measures. These measures add fees to homes and businesses that save money from bypassing utility power and protect the environment through ending the constant stream of pollution created by fossil fuel power generation, plus provide the solution to the pipeline spills that are becoming a common occurrence. In the state of Florida the measure to stop is Amendment 1, which through its misleading wording intends to block the sun.

The ballot measure is coming up on November 8, the same time as the presidential election. Although, ballots can be cast by mail starting October 4-11 or during early voting October 29-November 5 for those highly motivated folks. The wording on its face sounds soothing and plausible…

This amendment establishes a right under Florida’s constitution for consumers to own or lease solar equipment installed on their property to generate electricity for their own use. State and local governments shall retain their abilities to protect consumer rights and public health, safety and welfare, and to ensure that consumers who do not choose to install solar are not required to subsidize the costs of backup power and electric grid access to those who do.

However when we take a look at the 3 parts of this wording we see:

  1. The right to own or lease solar power.
  2. Government protection of consumer rights and health/safety.
  3. Protection from added expense.

With respect to the first portion, the people of Florida already have the right to own solar. Leases are outlawed due to being 3rd party power generation, 1 of 5 states to have such a monopoly protection. Besides, ownership is superior to leasing as is renting vs. owning. This portion is redundant and unnecessary from its inception. The supposition is that it is written as the grounding for the amendment, intended to mislead the people about what they already have.

Portion two its equally redundant because it is already an established task of the government to protect the health, safety, and welfare of the people. The State Attorney’s Office spends thousands of man hours doing just that. There is a dedicated portion of their office that solely focuses on consumer protection. So to further mislead people on what they already have is blatantly showing a greater level of intended deception.

In the third portion is where we see the ulterior nature of this amendment. No one wants to subsidize their neighbors investment, understandably, however study after study proves that when a neighbor goes solar EVERYONE benefits (even the utility). So, what is the goal of this last portion? Examples from similar moves show it is to add fees for a homeowner or business that chooses to stop contributing to the utility monopoly.

When looking at similar measures it becomes more and more apparent that the goal is a penalty fee for going solar. Nevada measure raised rates by 40% creating a 90% drop in solar installation permits. Arizona has a measure that raised their interconnection fee to $50/month plus raised fees for everyone. Minnesota created a local ordinance to begin a fee before solar has even gotten past 5 installations. Hawaii utility backed efforts block solar panel interconnection due to “safety”. The list can be made even longer with a state by state search. This amendment is simply a back door way to attack solar and block the sun in the sunshine state.

When looking at the potential of rooftop solar in Florida it is easy to see why the utility feels threatened, surely the horse and buggy  industry felt the same way about the car. The financial benefits to homeowners and businesses are tremendous along with the fact that the environmental protections that are provided by the new model just make sense. A spill for solar is just a sunny Florida day. In reality everyone sees the service that the utilities provide, but better technology has arrived and their responsibility needs to adapt rather than attempt to hold back advancement. There is a future for the utility is regulating the virtual power plant that is created by the excess power from solar arrays and greater financial gains for the market that it creates. Understanding how this backward amendment blocks the sun is the first step and the second is to inform all of our friends and family, particularly those that vote. Third is to go solar and see the benefits for yourself while reaching out to those around you. It is our responsibility to protect ourselves and the environment.

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Power Virtually

Rooftop solar is the most adoptable form of renewable energy for residences and commercial businesses, making it key to a clean energy future and leaving the majority of people feeling that the next president should accelerate it. Right now solar is poised to disrupt the entire utility industry. The short term potential has industry lobbyists scrambling to maintain the utility monopoly through measures like Amendment 1 in Florida and actions like underhanded rate increase as in Arizona and Minnesota. When in reality of the industry leaders should see how they can transition into the new model where their infrastructure can be re-purposed. The question becomes, what does a utility do if all power generation is decentralized? They manage virtual power plants, if they are smart, as what is being tested in New York.

The greatest drawback to solar is that it only works when the sun is out. This is overcome through the addition of battery banks and other storage capacity technologies, like compressed air. The harnessing of this storage is what makes up the virtual power plant. The established net metering system itself allows a utility to absorb the excess power from a solar array, allowing to be stored or delivered to another user. A task that can be developed into a market and allows the maintenance of their aging infrastructure. This concept is largely limited by utility fears and market misperception. When allowed to develop solar will be common place simply because it makes sense.

How the virtual power plant works is that a neighborhood or block of solar arrays will produce more energy than it needs and that energy can be transmitted measured units. Thereby making the excess power into a unit of trade like the stock market trades shares. The utility companies are the maintenance facilities for the interconnection lines as they do now and expand their existing metering into a managed commodity, with blockchain technology the concept becomes easier. Creating a funding mechanism for the infrastructure and preserving their existence. The alternative is to have to industry face the accelerated decline they foresee from greater affordability and acceptance of solar power.

Even to continue with the existing fossil fuel model solar power is quickly allowing utilities to save money doing exactly what they are doing now. Study after study is proving that  solar homes and businesses do not harm non-solar buildings. How this happens is that these non-polluting buildings lower the peak operating loads, meaning that peaker plants can sit dormant. The need for new facilities can be set aside while maintaining the ability to ramp up production through the dormant peakers. Any funds that utilities earmarked can than be transitioned into creating the virtual market and its capabilities or put into addressing any aging infrastructure. All reducing the environmental impact of power generation and turning efforts to reversing what some refer to as climate change, all through direct and indirect use of solar power.

At the end of the day utility companies have played a vital role in every aspect of our community, but the continued pollution and environmental damage has become too much for the planet and society to bear. Better technology is here and is being adopted by more and more homeowners daily. It would be most agreeable for those who have the training and ability to maintain their jobs, so no further Middle class jobs are lost, although the solar boom continues to create more and has the fuel to create further jobs into the foreseeable future. Fighting the growth of the existing boom is just antithetical to the common sense approach of facilitating it. There are billions more to be gained by the power that be through moving beyond big natural gas facilities and pipelines. Solar is the solution to fossil fuels and people taking advantage of it is how the world will change since utilities refuse to see how working with it and learning to manage the virtual power it creates would keep them alive. History has plenty of room to discuss them as we discuss the horse and buggy today.

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Pipeline Solution

In the last 4 weeks there have been 3 pipeline related ecological disasters, then 1 related to a fertilizer plant, all adding to the growing list of pipeline incidents. In Texas a natural gas pipeline burst taking out 15 utility poles and power to nearby residents. In Georgia and Alabama there was a gasoline pipeline that burst spilling 250,000 gallons into the local river. In New Mexico a natural gas line exploded killing 10 people at a camp site. In Florida a fertilizer plant had a sinkhole develop under its “slightly radioactive” retention pond releasing its toxic contents into the drinking aquifer. This all connects to solar energy in that when the new model of solar is used a mentality and understanding of renewable energy and environmental responsibility is fostered and maintained. The reach of which extends beyond the home that chooses to adopt rooftop solar.

The immediate impact of the Georgia and Alabama spill is a $0.20 increase in fuel prices (overnight) and a state of emergency called. However, what is telling about this incident is that the emergency was not that the spill caused ecological damage, but that the fuel prices will increase. It is understandable that this is an emergency and will reverberate through the entire eastern seaboard, it just seems obtuse to overlook the damage to the water and local habitat. Shouldn’t a dual emergency be called at minimum? The emergency simply echoes the focus of the powers that be. A community focused on solar is one that accepts electric vehicles bypassing gasoline, insulating them from fluctuating fuel prices and protecting them by impacting the use of pipelines.

Families camping in New Mexico were killed and the area rocked by the explosion of a 36″ natural gas pipeline. There were 5 adults and 5 children who died as a result along with 2 critically injured adults. Sorrow is the only feeling that arises from such a tragic event, followed by the question of how to avoid a repeat. Natural gas is largely used by the utility companies for power generation and transitioning to distributed power network through rooftop solar eliminates the tremendous flow provided by these types of pipelines.

The Mosaic fertilizer plant is not directly connected fossil fuels, but it is directly related to the fossil fuel mentality and example of conduct. Their pond leaked for a week before announcement and I suppose slightly radioactive is akin to a little pregnant. The lackadaisical response is a direct reflection of the foot dragging clean up and mitigation precedent established by the CONG (Coal, Oil, Natural Gas) industry. A wanton disregard for environmental impact is contagious, the corollary is that respect for the environment and using clean resources is as well. Going solar is that standing testament to environmental responsibility that is required to make lasting change.

The solar solution is seen in all of these tragic incidents specifically the need for environmental responsibility to play a greater role in our lives or allow ecological damage to play a greater role. The decision is up to the individual because the decision to reinforce the status quo is evidently the one made by industry and oversight leaders. There are enough effected and concerned people to make solar the solution to the pipeline problem. A spill to solar is just a welcomed sunny day. There comes a point when enough is enough. We have to make the conscious decision to be good stewards of this world and be the example of environmentally responsible choices. These decisions are not coming from the heads of CONG corporation or heads of state (in a sufficient way). These heads are pushing and allowing legislation that will stifle renewables through Amendment 1 and similar bills. Only the people can provide the support to stop them and lead the example of distributed power. The actions need to be done from the bottom up, from the people most effected by these disasters. We can make the change and the heads will follow. Do your part by using clean renewable power.

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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Solar Misperceptions

Solar power has come a long way since its introduction as an alternative power source. It has grown from a niche of environmental die hards to the leading alternative power source and gateway to distributed power generation. With all that it has become there are 2 pervasive ideas that persist about it:

1. Solar is expensive

2. Only utility scale solar is available

This may have been true for years, decades even. Apparently so long that is has become the reflex answer for why so many homeowners have not adopted it. The reality has changed and now the perception must as well. Overall the amount needed to install solar power has dropped over 50% in the last 6 years and another 5% over last year. In 2010 it would take about $7/watt to install solar, a rather hefty investment just a short time ago. Especially with people reeling from the home crisis of 2008. That market has since rebounded and the solar market has taken massive leaps as well dropping the average investment amount to $3.30/watt for an installation. This still varies based on the company and there are some as high as $5.00, depending on system additions like power regulators, battery banks, or other ancillary components. This puts going solar on par with utility pricing for electricity. When they are lined up next to one another it just makes sense to go with the clean source instead of the polluting one.

When people speak of solar more often than not they are expecting it to come from the utility company. Fields of solar panels blanketing our countryside, which is common. Our e local Florida Gulf Coast University installed a 15 acre solar field which accounts for 85% of the power that the engineering building uses and reduced the campus power consumption from FPL by 18%. However, this configuration is not the only option available, particularly to residents of the sunshine state. Homeowners can take their part through rooftop solar arrays. The underutilized space of the roof is ideal for solar power production based on its constant bathing in sunlight that normally makes the home just hot. The perception of the top down approach must shift to a grassroots, bottom up, approach. Utilities can still shift to solar fields and homeowners can help with the heavy lifting by using their roof.

Between the 2 perceptions there must by a merging to allow homes to reap the benefits of going solar. The cost of doing nothing is continued expense, even for facilities that will not be built like the unlicensed nuclear facilities that everyone has been on the hook for since 2006. On top of that there is a rate increases of a proposed 24% by FPL that can begin to take effect early next year. This increase will offset the entire savings the university created. Furthermore there is the continued environmental damage from burning fossil fuels daily. The cost of allowing the misperceptions  of expense and scale cost far more in the short as well as long runs. Focusing on creating a greener city like Boulder, Colorado has done is just the first step in energy responsibility. That is the initiative that all of Florida, from the people on up, should be taking. Throughout the country there is the growing trend of solar. Just in the 2nd quarter it has grown 43%! Despite this fantastic pace we need homes to make the affordable choice of investing in solar and controlling their power. You own your home, why rent your power?

Go forth and spread sunshine,
Clifford Mitchem
Independent Energy Advisor
Clean Renewable Energy Worldwide

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