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LA Solar Group

Investing in Solar Energy

Investing in Solar Energy

{You can save money by investing in solar|It is possible to save cash by investing in solar|Solar energy can help you save on} {energy|power}. {It all depends on|It’s all about|It’s all dependent on} {where you live|the location you reside in}{, what incentives are available| and what incentives are offered| the incentives available} {from your state, and|by your state, and|from your state, as well as} {what type|the type|what kind} of system you {choose|select|decide to use}.

{You will need|You’ll need|It is necessary} to {request a quote for|ask for a quote for|get a quote on} {your solar panel installation|the installation of your solar panel} {in order to calculate|to determine|to calculate} the {expected solar panel ROI|anticipated solar panel ROI|expected ROI of solar panels}. The savings {can be significant|could be substantial|can be substantial} regardless of {your individual|your personal|the specific} {circumstances|situation}. A 5-kilowatt {system can|system could|solar system can} {result in a lifetime savings|yield a savings over the course of a lifetime|provide a lifetime savings} {of more than|of over|that exceed} {$38,000|38,000 dollars|$30,000} {in|for|within} Oregon {and $70,000 in|as well as $70,000 for|or $70,000 in} Nevada. {These are quite different numbers|These are very different figures|They are not the same numbers} {but still represent a remarkable|however they still provide a significant|but they are still a stunning} {return on investment|ROI} {for solar panels|in solar panel systems|on solar power panels}.

Is solar energy expensive?

It {can be difficult|isn’t easy|is not easy} to {decide whether you want|determine whether|decide if you’d like} to {invest in|make a decision on whether you want to invest in|put money into} your home, {especially|particularly} {if you are not familiar|when you’re not experienced|in the event that you’re not acquainted} {with|about} {solar|solar panels}. {Many homeowners have questions|A lot of homeowners are confused|Many homeowners are uncertain} {about how to install|regarding how to set up|about the best way to install} solar panels, {their|the|what they} {cost, and what|price, and how|costs, and even what} {they will|they’ll} {look|appear} like. {We hear the most common|The most frequently asked|We get asked the most frequent} {questions|concerns|inquiries}: “Is solar power expensive?” “Is it {worthwhile|worth the investment}?” {and|as well as|And} “Can it be {afforded|financed|funded}?” .

These are {crucial questions to|important questions to|the most important questions you can} {ask because solar is likely|consider because solar power is|inquire about because solar is probably} {just one of the many|to be one of the|to be just one of many} {investments you consider|options you can think about|investment options that you will be considering} {in a given|during the|in the course of a} year. {Another option is to consider|You could also think about|One option is to think about} {a new vehicle|the purchase of a new car|an upgrade to your vehicle}{, tuition or medical care| or tuition, or medical treatment| as well as medical or tuition}. {How can you tell|What can you do to determine|How do you know} {if solar is too costly|whether solar is expensive|whether solar is costly} or {the right|at the right|is the best} price?

What will it cost to go solar?

The {average|typical} rooftop solar {system|array|panel} {in|located in|within} the United States has a capacity of 5 kW. {At|With} \$2.98 {per Watt,|for a Watt of power,|per Watt} the{ current|} {average cost per|average price per|cost for a} {unit|system|device} {is|of solar panels is|will be} \$2.98 (the lowest {price ever|cost ever|price in history}). {This means that|That means|That means that} {an average solar installation will|the average solar installation will|an average solar installation would} cost {around|about|you around} {\$14,900|14900 dollars}. {That’s about the same|This is about the same price|It’s roughly the same amount} as {a new economy sedan|the cost of a new economy car|the price of a brand new economy vehicle}. {The federal solar|Federal solar|Solar energy is a federal issue.} Investment Tax Credit (ITC) {gives you|offers|provides} 30% off {solar|of solar} installation costs, {provided|if|as long as} you {don’t|do not} lease. {This could bring|It could reduce|The ITC could lower} the{ average|| total} cost {down to $10,430|to just $10,430|down to around $10,430}.

The {price of residential solar|cost of solar for residential use|cost of solar panels for residential homes} is {falling|decreasing|dropping}{, but| however,| but} waiting {until it becomes even|to see it become|for it to become} {more affordable could prove to|cheaper could|cheaper may} be a {bad idea|mistake|risk}. {Consider how long you intend|Think about how long you plan|Take into consideration how long you’ll need} to {live in your home|stay in your house|remain in your home}{, as well as| and| in addition to} other {factors like|aspects like|factors such as} {the expiration or extension of the federal tax credit|extensions or expiration dates for the Federal tax credit|whether or not the tax credits will expire or extend} (currently extended {to|until} 2022).

Are solar energy payments taxable?

What is {a|an income|the} tax credit?

{A tax credit is|Tax credits are} {a reduction of the|an exemption from the|reduced} {income tax that you would|tax on income that you’d|income tax you would} otherwise {have to pay dollar|pay|be required to pay} for dollar. A {$1,000 federal tax credit|tax credit of $1,000|$1000 federal tax credit} {can reduce|could reduce|can lower} {your federal income taxes|the federal tax on income|your federal income tax} by {$1,000|$1000}. {Although the federal|While the federal tax|Even though the federal tax} credit is {sometimes referred to|often referred to|sometimes referred} {as|by the name of|in the form of} ITC {or an|as an|also known as} Investment Tax Credit, this {is not the same as|is not the same thing as|isn’t the same as} the ITC {accessible to solar-powered businesses|available to solar-powered businesses|that is available to solar-powered companies}.

Best Solar Company in Los Angeles LA Solar Group

What is the federal solar credit?

Federal {residential solar energy credit|solar energy credit for residential use} {can be claimed as|is} {a tax credit on|an income tax credit for|a tax credit when filing} federal income {taxes|tax}. {It is for a certain|It’s for a specific|It’s a certain} {percentage of the price|amount of the cost|percent of the cost} of {a solar PV system|the solar PV system|solar PV systems}. Other {types|forms|kinds} of renewable energy {may also|could|might} be eligible for {similar credits|the same credits|credits similar to this}{, but they are not| however they are not| but they aren’t} {covered in this guidance|included in this guideline|mentioned in this document}.

The system {must|has to|should} be {in use|operational|operating} {during the tax year|in the tax year|throughout the tax year in order} to {generate|produce} electricity for {a residence|homes|residences} {in|within|located in} the United States. The IRS {does not have a|has no|doesn’t have a} {clear-cut test for what constitutes|specific definition of what is|precise definition of} “placed {into service,|in service|to service}” {but it has defined the term|however, it defines the word|although it does define the phrase}{ as completed|”completed” as an|”placed into service” as a completed} installation.

Congress {approved|has approved|authorized} an extension {to|of} the ITC {in December 2020|in December of 2020|in December 2020}. It {provides 26%|grants 26%|offers a} tax credit {for systems that were|for systems|to systems} {installed between 2020-2022 and|installed between 2020-2022 , and|constructed between 2020 and 2022 and} 22% {for those|for systems|to those that were} {installed|that were installed|constructed} between 2023-2023. Systems {installed prior to|that were installed prior to|installed prior the date of} {December 31|the 31st of December|November 30}, 2019{,|} {were eligible for a 30|could qualify for a 30|were eligible for a 30-year}{%| percent} credit. {Unless|If} Congress {renews|extends} the credit{, the tax credit| and the tax credit is renewed, it| in 2024, the tax credit} {will expire in|is set to expire by|runs out in} 2024.

{There is no limit|You are not limited|It is not a limit} {to|on} the amount you {can claim|are entitled to claim}.

Am I eligible to claim the federal solar tax credit?

If you meet{ all of|} the {following criteria|requirements listed below|following requirements}{, you may| You may| then you could} be {eligible|qualified} {for this tax credit:|to receive this tax credit.|for this tax credit}

  • {Between January 1|From January 1st|Beginning on January 1}, 2006{,|} {and|until|through} December {31, 2023, your|31st, 2023, your|31, 2023, the} solar PV {unit was installed|system was installed|system was put in place}.
  • If the {electricity|power|energy} {generated|produced} {by the solar PV|from the PV solar|through the} system {does not|doesn’t} exceed {your home’s electricity use|the electricity usage of your home|the energy use of your home}{, it can be credited| the system can be credited| It can be used to credit} {against your home’s|towards your home’s|to your} {primary or secondary residence|principal or second residence|main or secondary home}. {A taxpayer can claim|Taxpayers can get|A taxpayer may claim} {a section 25D tax credit|an exemption under section 25D|the tax credit section 25D} from the IRS {for purchasing a portion|to purchase a portion|when purchasing a part} of a {community-scale solar project|solar community|community-scale solar system}.
  • {The solar PV system|Solar PV|This solar system} {is yours|you own} (i.e. you {bought it with|purchased it with|bought it using} {cash or financing, but|money or credit, but|cash or with financing, however,} {you are|you’re} not leasing the {system nor|system or|solar system, nor are you} {in an arrangement to buy|any arrangement to purchase|under an agreement to purchase} electricity from a {system that|system|solar system} {you don’t own|you do not own|isn’t yours}).
  • {The solar PV system|Solar PV equipment|This solar system} {is either|is|may be} {new or being used|brand new or is|new or} {in its first use|for the first time|in its initial use}. Only the {original|initial} {installation of the|setup of|construction of the} solar {equipment|system|panel} is {eligible|qualified|acceptable} {for credit|to be credited}.

Are tax credits for solar energy refundable?

Are you seeing your employer putting off taxes?

{The majority of|A majority|Most} Americans {have their employers|are employed by their employer who} automatically {hold|deduct|collect} {their taxes from|the taxes on|their taxes out of} their {paychecks|pay checks}. {It is much simpler|It’s much easier|It’s easier} to calculate your {taxes|tax bill} at {year’s end than having|the end of the year than|the end of the year rather than having} to {be your own accountant|hire an accountant on your own|work as your own accountant}. The amount {that is held|you are able to hold|of tax you pay} back {will vary depending on|is contingent upon|can vary based on} your {income, but|income, however|earnings, however,} {most people will have|the majority of people will pay|most people will pay between} {hundreds to thousands|thousands to hundreds|hundreds or thousands} of dollars {in income taxes|in taxes on income|of income tax}.

The ITC {is here to help|is here to assist|can help you}. The ITC {covers|will cover} {26 percent of the|26 % of your|26,4 percent of} {installation cost|cost of installation|installation costs}{, not only| and not just| not just} the panels{ but also the|, but also} solar components{ like your|, such as your| such as the} inverter and {racking|rack|the racking} system. It {can also cover|also covers|could also cover} {a battery backup system|batteries that are used to backup your system,|the battery backup system} {such as|like} {the|Tesla Powerwall.|that of the} Tesla Powerwall, provided that you {use|make use of|are using} {renewable energy to charge|the renewable power source to recharge|solar energy for charging} {it|the battery}. {There is no cap on|There is no limit on|There’s no limit to} the {federal ITC’s dollar amount|amount of federal ITC’s dollars|federal ITC’s dollar value}.

Let’s {suppose you have|say you have a|assume you have a} {\$20,000 solar installation|an installation of \$20,000|the solar system worth \$20,000}. {Now, let’s say|Let’s suppose|Let’s assume} {you have a solar installation|you have a solar system|that you own a solar array} {worth|that is worth|valued at} {$20,000|$20,000}. {The federal|Federal|It is the federal} ITC is a{ $5,200|} tax credit. {After all taxes have been calculated,|Once all tax liabilities have been calculated|When all your taxes are calculated} {this|the} credit is {applied|added} to {your total taxes|the total amount of taxes|the amount} due, {reducing your|which reduces the amount of|reducing the} tax {owed by $5,000|liability by $5,000|due by $5,000}.

You’ll {owe|be liable for|have to pay} {$14|14|the tax of $14} 605.50 in federal {taxes|tax} {if you earn $85,526 per|If you earn $85,526 a|when you earn $85,526 each} year (the minimum{ amount|} {for the fourth federal income tax|to be taxed in the federal fourth income|that is required to qualify for federal tax in the 4th income} bracket). {This amount will be deducted|The amount is deducted|The tax amount will be taken} from your {paycheck|pay|salary} {by your employer|from your company|through your workplace}. {You would only owe|The amount you would owe is|It would be only} $9405.50 {if|If|in the event that} you {had|were to have} {your|the} {federal|Federal|ITC from the federal} ITC {valued at $5,200|worth $5200|estimated at $5,000}.

{You would have to return|You will have to pay back|You’ll have to pay} the $5,200 {your employer withheld|that your employer took|tax deduction your employer took} from you. {You will receive|You will get|The employer will pay you} the {$5,200 in taxes back|tax refund of $5,200|tax amount of $5,200 back}. {This is basically a refund|It’s basically a refund|It’s basically a reimbursement}.

What happens if there's still credit?

{However, there are situations|There are instances|However, there are some situations} {in which|where|that} the solar ITC {will not give you|cannot provide you with a|won’t give you a} {a full refund|an entire refund|the full amount}. The {$5,200 amount that was|amount of $5,200 that was|$5,200 amount} {applied to someone with|used to pay|given to a person with} {$3,000 in tax owed|tax due of $3,000|$3000 in tax due} {will not be returned|is not refundable|cannot be refunded}. Instead{, the credit will reduce| the credit will decrease| the credit will reduce} {your amount to $0|the amount to zero|the amount you owe to $0} and {give you $3,000 back|refund you $3,000|you will receive $3,000 back}. {Then, it will|It will then|After that, it’ll} {roll over to the following|be carried over to the next|carry over to the next} year, {where you can|and you will be able to|when you are able to} {apply any remaining|use any|add any remaining} federal ITC {to your taxes|on your tax returns|to your tax bill}.

{This is a significant|This is a major|It’s a big} {difference to a refundable credit|contrast to a refundable|distinction from a refundable credit} tax credit. A {refundable credit would allow|credit that is refundable allows|credit that can be refunded would permit} you to {get $3,000 back|receive $3,000 back|claim $3,000} {if you spent|when you spend|in the event that you spent} less than{ $0 on the|} $5,200. The IRS {would then send|will then issue|will then mail} you a check {for $2,200|of $2,200|for $2200}.

{You must owe income taxes|Taxes on income are required|You have to pay income tax} {to maximize your|to get the most benefit from|in order to maximize your} {federal solar tax credit|Federal solar tax credit|credits for federal solar taxes}{ returns|}. The {federal solar credit is non-refundable|solar tax credit for the federal government is not refundable|solar tax credit is non-refundable} and you {will not|won’t} {be able to get any|be eligible to pay|receive any} income tax{, whether|, regardless of whether| if} you {are receiving|receive} {social security benefits or from|social security benefits or|Social Security benefits or} {your primary source of|your main source of|the source of your} income.

[xfield_company] discourages people from {going solar if they don’t|going solar if they do not|making the switch to solar if they don’t} {owe federal income tax|have federal income tax to pay|pay federal income tax}. Solar {has become|panels have become|is becoming} {more affordable in recent years|cheaper in recent years|more affordable in recent times} {because of|due to} the ITC. {Your solar installation|Solar installations|The installation of solar panels} {will be more costly|is more expensive|will cost more} {without the tax credit|with no tax credits|even without tax incentives}.

Are solar energy stocks a good investment?

{According to|Based on|As per} the [xfield_company], the average solar investment tax credit (ITC) was {introduced|first introduced|announced} in {2006|the year 2006}. It has {led to|resulted in} {a 52% annual growth|an increase of 52% annually|the growth rate of 52% per year.} rate. {Moreover, increasing|Furthermore, the growing|In addition, growing} demand {will likely lead to|is likely to result in|could result in} {increased profits for solar companies|higher profits for solar companies|greater profits for solar firms}.

[xfield_company] is a {convenient way to invest|ideal way to invest|suitable investment option} in the{ sector of| field of|} solar energy. {This company makes|The company produces|The company manufactures} solar power {equipment, products|equipment, items|products, equipment} {for end users, and|for consumers, as well as|intended for the end-user, as well as} equipment {used by|for|utilized by} solar panel {manufacturers|makers|producers}{, solar installers, or| solar installers,| and solar installers or} {companies specializing|businesses that specialize|companies that specialize} in {solar cell manufacturing|the production of solar cells|the manufacturing of solar cells}. The {fund’s return was|return of the fund was|fund’s returns were} -15.59{% on a year-to-date| percent on a year-to date| percent on a calendar-year} basis{ and|, and} 41.10{% over a three-year| percent over a 3-year| percent over a three-year} period.

How does solar energy save money?

{You might|It is possible to|There is a chance that you’ll} be {skeptical when you look|skeptical|a bit skeptical when looking} at the {initial cost of|cost that is initially associated with|initial price of} solar {power|energy}. Solar panels are {a great|an excellent|a good} investment{, and they can| and can| and will} {pay for themselves over|be paid back over|become a viable option over the course of} time. The {environmental benefits|benefits for the environment} {of solar energy|from solar power|that solar panels bring} are{ well|} worth the {effort|time and effort|investment}. [xfield_company] is passionate to {educate you about|inform you about|help you understand} renewable {energy|energy sources}. We’ve {compiled|put together|created}{ a list of|| the following} three ways {that solar energy|solar power|in which solar energy} {can save you|will save you|can help you save} money. Visit our {website to get|website for|site to receive} {a free quote if you|an estimate for a no-cost quote if you|an instant quote if} {are interested in switching|are considering switching|would like to switch} to solar {power|energy}.

Reduce or eliminate your electric bill

{Your average energy consumption|The amount you use for energy|Your energy usage average} and {how many|the number of|the amount of} panels {you have available for|you have in|are available to} your home {can impact|will affect|could affect} the {cost of your electricity|price of your electricity|cost of your electric} bill. {The cost of electricity|Electricity|The price of electricity} is the {largest monthly expense|biggest monthly expense|most expensive monthly cost} {for|of|in} American households. {Years of not paying for|The years of not having to pay for|A few years without paying} electricity {will quickly pay off|can quickly pay for|will soon pay off} the initial {installation costs|cost of installation|costs of installation}. {Even if your goal is|If your aim is|Even if you’re trying} to {become energy independent|be energy-free|go energy independent}{, it’s possible to| you can| it is possible to} {save money and only use|reduce your expenses and only use|save money and only rely on} {your local grid when|the local grid when|your local grid only when} you {are in need|need to|require it}. It’s {easier than ever|now easier than ever before|never been easier} to {get your electricity|bring your electric|keep your electric} {bill under control with the|cost under control thanks to the|bill in check thanks to} {advancements in batteries and|advances in batteries and|technological advancements in batteries as well as} backup generators.

Tax incentives

{Any commercial or residential|Anyone who is a residential or commercial|Every residential or commercial} {property owner who invests|homeowner who has invested|home owner that invests} {into|in} {their own solar power|the solar energy of their home|your own solar-powered} {system may|system could|systems may} {be eligible for tax|be eligible for tax-free|qualify for tax} {incentives from the|incentive from the|benefits from} U.S. Government and some {state|states’} governments. The {incentive was once|incentives were once|incentive was previously} {as high as|up to|at times as high as} 26%{, but it|, however it| but} {will drop|is expected to drop|will be reduced} to 22{%| percent| percentage} {by 2020|in 2020|by 2020}. {These incentives are intended|The incentives are designed|These incentives are meant} to {offset the initial cost|reduce the initial cost|help offset the initial costs} {for solar energy|of solar energy,} and {make it more affordable|help make it more affordable|will make it easier} for homeowners to {adopt|invest in|take advantage of} solar {energy|power}.

{A smart investment|An investment that is smart|An investment with a high return}

{For many reasons,|There are many reasons why|Many reasons make} solar {energy is a good|energy can be a great|power is an excellent} investment. Solar panels can {increase|boost|improve} the {equity of your home|value of your home|equity of your house}{, particularly| especially| particularly} in states that {support|are supportive of|promote} renewable {energy|energy sources}. {You can also|It is also possible to} invest in the {rapidly growing|fast-growing|growing} solar {industry and support|industry , and also support|sector and help} local solar {companies|firms|businesses} {like|such as} [xfield_company]. {While solar has|Although solar energy has|While solar power has} {become more affordable over|been more affordable in|been able to be purchased for less in} the {past few|last few|past couple of} years, the {cost|price} of nuclear energy {remains|is still|is still very} {high|expensive|costly}. {Newer, better technology|The latest, more efficient technology|Technology that is more advanced and better} is {constantly being developed|being developed constantly|continually being developed} in the solar {industry|sector|field}. Solar panels {can last a|last for a|can last for a} {long time and don’t need|long time , and do not require|longer time and don’t require} {much|any|regular} maintenance. Solar panels{ will| can|} last for {many years|a long time|years} {if you take care of|when you care for|provided you maintain} them. {You might|It is possible to|You can} {encourage your neighbors to|convince your neighbors to|help your neighbors} {switch to solar energy|change to solar power|make the switch to solar energy}{, which can help| and| that can} {contribute to a better future|create a better future|in ensuring a better tomorrow} for {the|our} planet.

What solar energy companies to invest in?

{Many people and businesses|A lot of people and companies|Many businesses and individuals} {want to reduce|are looking to reduce|wish to lower} {their carbon footprints|the carbon footprint of their operations}. Solar energy is{ becoming| now|} {an increasingly popular option|more and more popular as an alternative|increasingly popular alternative} {to oil and natural gas|in comparison to natural gas and oil|for natural gas and oil}. {Since 2014,|In 2014|From 2014 on,} the {cost|price} of solar panels {fell|has dropped by|dropped} 70{%| percent}. It is {expected|predicted|anticipated} that {more than one-seventh of homes|more than one-seventh of all homes|over one-seventh percent of homes} will have rooftop {panels|solar panels} {by|in} 2030. {The|It is expected that the|In addition, the} U.S. government will also {expand its solar energy plans|increase its solar energy programs|extend its solar energy plans}.

Solar energy is {becoming more|becoming increasingly|getting more} {popular|well-known|sought-after} {in|across} America {and all over|and across|as well as across} the {globe|world}. {It’s not surprising that|This is not surprising since|So it’s no surprise that} {solar|solar-related} stocks {have become a popular|are now a sought-after} investment. {These stocks offer investors|They offer investors|They provide investors with} {long-term opportunities, as|long-term benefits, since|longer-term prospects, considering that} the {sector of renewable energy|renewable energy sector|field of renewable energy} is {expected to grow rapidly|predicted to expand rapidly|expected to grow quickly} in the {future|near future|coming years}. {While solar energy stocks are|Although solar energy stocks can be} {volatile as the industry|unstable as the market|fluctuating as the sector} is {still expanding|growing|expanding}{, they are still| however, they remain| but they remain} {a popular investment option|an investment choice|an option} for {many investors|investors,} as the country {transitions|shifts away|moves away} from fossil fuels {towards|to|and towards} renewable {resources|energy sources}.

You can {reduce|cut down on|lower} {your electric bill or|your electric bill , or|the cost of electricity or} {eliminate it entirely, offset|completely eliminate it, reduce|completely eliminate it, offset} {your carbon footprint|the carbon emissions|any carbon emission}, {increase|boost|enhance} {the value of|its value, increase the worth of|you value for} your {home,|home|house,} and {be completely|become completely|be totally} or {partially energy independent|partially energy-free|in part energy-free} {by switching to solar energy|by switching to solar power|through switching to solar energy}. [xfield_company] will make {your transition|the transition|your switch} to solar power {smooth|seamless|easy} and {easy|simple}. Our {licensed solar technicians|certified solar technicians|solar experts are licensed and} will install a {lasting|long-lasting|reliable} solar system. [xfield_company] is the {right choice if you are|best choice for those|ideal choice if you’re} {looking to switch|seeking to make the switch|trying to transition} to solar {energy|power}. {For a free quote|To get a no-cost quote|For a free estimate}{, call| contact us| make a call} {or visit our website|(800) or go to our site|the number listed or check out our web site}!

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The main reason why this happens is when you have a grid-tied solar system, it has safety measures preinstalled to shut down production in case of a power outage so as not to do extensive damage to the grid or the employees working on fixing the outage.

If you would like to be less dependent on the grid or ideally have no dependence, then you can add storage batteries to your solar system.
Backup batteries store the excess energy produced by solar for later use (for example, when there is a power outage). You can provide backup for some of your home appliances or all of them by installing more batteries depending on your energy consumption.

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