“There has probably never been a better time to switch to solar,” says a new article from Consumer Reports.
This is a big deal.
It’s one thing for solar companies to urge homeowners to go solar now.
But it’s something different when an independent, nonprofit consumer advocate that’s been around since 1936 says that now is the best time for Americans to go solar.
Advice from Consumer Reports carries a lot of weight.
So homeowners in Virginia will want to pay attention when the respected consumer advocate says that there may not be any benefit in waiting for solar to get much cheaper than it already is:
Those who want to wait on the sidelines for further price reductions could be disappointed: The cost of solar panels has started to plateau and, while installation labor and other soft costs continue to fall, the phasing out of state tax incentives and utility rebates and grants has largely offset those savings.
In fact, there may be some risk in waiting until next year to get solar, because incentives that are available today may not be available in the future at the same level or at all:
Adding an element of urgency to the equation are proposals in a number of states that would radically shrink the utility-bill savings of switching to solar power (see “How Utilities Are Fighting Back on Solar Power”). Because, generally speaking, existing solar customers haven’t been subject to those changes, getting your deal done before new regulations are implemented could save you hundreds of dollars each year.
Two Solar Incentives for Virginia Homeowners
Virginia homeowners currently benefit from two major incentives for going solar.
- Federal Tax Credit. Congress has stipulated that this tax credit will remain at its current level of 30% until 2019. After that, it will step down to 26% in 2020 and 22% in 2021. After 2023, the federal tax credit for residential solar will drop to zero. Read more about the federal tax credit for solar.
- Virginia Net Metering. Net metering is the main incentive for home solar in the state of Virginia. It allows homeowners whose solar systems are connected to the electric grid to sell any extra power generated by their solar system back to their power company. The program is not due to expire at any date, but its capacity is limited. “Net metering in Virginia is available on a first-come, first-served basis until the rated generating capacity owned and operated by customer-generators reaches 1% of an electric distribution company’s adjusted Virginia peak-load forecast for the previous year,” according to the national databased on solar incentives. Read more about Virginia net metering.
So, each of the major incentives available for home solar in Virginia is limited, either by time, or by capacity. Right now, these two incentives together make solar much more affordable for homeowners in the state.
Net Metering — Strong Today But Uncertain Tomorrow
There’s a further risk in waiting, especially to net metering. In other states, electric utilities have tried to water down or even abolish net metering. It is possible that in the coming years, the same could happen in Virginia, even before the 1% cap is reached.
Fortunately, as Consumer Reports notes, homeowners that get solar are virtually guaranteed to be grandfathered into the net metering program that was available when they had solar installed, even if the program is changed in the future.
That’s just another reason to get solar now, when Virginia’s excellent net metering program still has space for new homeowners and while the program is still operating at full force.
So, now is the time, and Virginia is the place.
At the bottom of the Consumer Reports story, you’ll see that they show a map of 31 states where solar has a “bigger payoff for homeowners.” And Virginia is one of those states where home solar makes financial sense.
If you’d like to see if now is a good time for you to go solar, we’re always happy to provide a free assessment of your home and a price quote.
— Andrew Brenner, Main Street Solar
