FREQUENTLY ASKED QUESTIONS
There is a Federal Tax Credit for residential and commercial property owners that install solar pv systems that cover 26% of your total costs with no maximum credit. The taxpayer may claim this credit of qualified expenditures for a system that serves the taxpayer’s property.
In the state of Missouri, any taxpayer who paid a certified entity to complete a home energy audit or other efficiency improvements may take a tax deduction of $1,000 maximum per year per individual and $2,000 maximum for joint filing. A home energy audit must be performed before the implementation of any energy efficiency upgrades to be eligible for this tax deduction. Also, homeowners in Missouri are also encouraged to add solar energy systems to their homes with a 100% solar property tax exemption. Markets across the U.S. have noted solar energy adds 50% of its retail value to the property’s value, and thanks to that exemption, you will not pay a thing in taxes on all that added value! In addition, different statewide programs and utility company rebates may be in place at the time you are looking to install so ask us today if you qualify for any other incentives!
In addition, different statewide programs and utility company rebates may be in place at the time you are looking to install so ask us today if you qualify for any other incentive!
As a Trade Ally Partner of Ameren, we can review your previous electric usage with your account number and determine what size solar system would be right for you. If your utility provider is not Ameren, we are able to use a simple calculation to determine the appropriate system size if you provide us with either the amount of an average monthly electric bill you are currently paying or how much electrical usage (kWh) your property uses monthly.
A properly installed solar power system should require little to no maintenance and will include detailed monitoring to ensure the system is running optimally. However, any dust or debris that settles on the modules is usually removed by normal rainfall. Sometimes larger obstructions such as leaves or bird droppings can cause production losses, but this is typically minimal and would not require your intervention. A quality installation partner like EFS Energy will be there to monitor and troubleshoot any issues as well as work with manufacturers on anything that falls under their warranty scope.
Just like any other investment, solar is a long term investment that will pay for itself over time. However, with the current incentives: 26% Federal ITC, local rebates, depreciation, and monthly energy savings from the utility (many of which are when demand charges and peak-hours are high), the first 5 year savings average from 50-100%. Our detailed financial analysis will show you exactly what to expect.
If you have a grid-tied system, it will automatically shut down until the power is restored. This is for safety precautions and allows the utility company to safely make the necessary repairs. There are certain inverters and electrical configurations that would allow for backup power from a battery bank or generator in the case you would like power during an outage. If you experience multiple power outages or long durations without power it may be beneficial to look at backup solutions.
- Lower operational cost of your home or business = Savings back in your pocket
- Tax Credits and Incentives to offset the initial cost
- Financing to see a positive cash flow sooner
- Increase in home value–homes with solar sell quicker and higher than those without solar
- Provides strength to the local economy
- Reduces air and water pollution
- Reduces Water Usage
- Reduces Dependence on Nonrenewable Energy Sources
- Improves Humanity’s Health
- Helps Fight Climate Change
$0 down financing may be the most popular option and is available at a low interest rate that could provide the opportunity to pay down higher interest debt.
Microinverters and just that: small inverters that are installed on the solar modules themselves. Microinverters are used in areas where shading from trees or other buildings will cause partial shading of the solar array. Because each solar panel has its own inverter, the system is affected far less by shade than a string inverter.
Optimizers are like a hybrid between the other two technologies. Small optimizers will be installed on each module to mitigate shading just like microinverters, but there is also an inverter that hangs on the wall as well.
EFS carefully researches the best technology from each category and recommends the best fit for each situation.
Once you decide to go solar, the entire process takes 2-4 months on average depending on a variety of factors such as incentive programs, permitting, and demand. It’s best to start the process early in the year to ensure maximum tax benefits.
Commercial and Agricultural
We pride ourselves in custom solutions for every client. The benefit of this is that we take into account your specific location, roof pitch, shading and orientation into each design. This means that while there are ranges our projects will typically fall within, it is hard to give any real estimate without a conversation about your property and what you are trying to accomplish with solar. This conversation could include storage and backup solutions, applicable product warranties and system performance that would factor into the project cost. To find out more about what an EFS Energy system will cost and the savings associated, get your FREE Solar Quote from one of our Energy Consultants.
RECs are tradable, non-tangible energy commodities that represent 1 megawatt-hour of electricity generated from an eligible renewable energy source. Select markets are participating at different levels so check in with us today about the options in your state.
Business Energy Investment Tax Credit (ITC)
Businesses that install solar photovoltaic (PV) systems are eligible to receive a tax credit in the amount of 26% for installations started in 2020 of the total PV system cost. This steps down to 22% in 2021 and then 10% in 2022. Unlike tax deductions, this tax credit can be used to directly offset your tax liability dollar for dollar. If your tax credit exceeds your tax liability you can roll the credit into future tax periods for 20years.
Federal – 100% bonus depreciation (Tax Reform Bill)
The Tax Reform Bill modifies bonus depreciation under Code Section 168(k) to allow 100% expensing for property placed in service after September 27, 2017 and before January 1, 2023. By increasing bonus depreciation to 100 percent, the new tax bill essentially allows eligible entities to deduct the entire allowable tax basis of the
system in the first year of operation. Under the federal Modified Cost Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. MACRS establishes a lifespan for various types of property over which the property may be depreciated. For PV systems, the taxable basis of the
equipment must be reduced by 50% of any federal tax credits associated with the system.
Ameren Illinois Customer Generation Rebate – Rider CGR
The Ameren smart inverter rebate will be made available to business customers who have adopted solar utilizing SunSpec compliant inverter technology. Rebates will be provided once for each Eligible Facility, and calculated on a per watt basis of nameplate generating capacity measured in nominal DC power output at a rate of $250/kW. Upon approval of a rebate application, a Customer served by the Private Generation Facility shall no longer be entitled to receive any delivery service credits for the excess electricity generated by its facility. Annual net metering for supplier charges will remain active.
Solar Renewable Energy Credit Program (SRECs)
The Illinois Power Agency has developed electricity procurement plans to encourage homeowners and business owners across the state to install solar photovoltaic systems. Based on your system size, this program has the potential to credit an additional up to 35% of your total system costs.
Net Metering and Utility Company Rebates
In addition to net metering with your utility provider, certain utilities provide additional rebates for installing solar photovoltaic energy to your property.
Rural Energy for America Program (REAP) Grants
If you own a business in a rural area you may be in a REAP eligible area. REAP Grants award you up to 25% of your solar project. EFS works with a grant writer that has success in helping put our customers in a great position to be awarded one of these grants. Contact an Energy consultant today to find out how you can qualify!
Residential
We pride ourselves in custom solutions for every client. The benefit of this is that we take into account your specific location, roof pitch, shading and orientation into each design. This means that while there are ranges our projects will typically fall within, it is hard to give any real estimate without a conversation about your property and what you are trying to accomplish with solar. This conversation could include storage and backup solutions, applicable product warranties and system performance that would factor into the project cost. We offer many solutions for homeowners to aide you in this investment process from in-house financing options to other professionally recommended efficiency solutions to further lower your monthly bills and increase your overall efficiency. To find out more about what an EFS Energy system will cost and the savings associated, get your FREE Solar Quote from one of our Energy Consultants.
Residential Energy Investment Tax Credit (ITC)
There is a Federal Tax Credit for residential property owners that install solar PV systems that cover 26% of your total costs with no maximum credit. The taxpayer may claim this credit of qualified expenditures for a system that serves the taxpayer’s property. Systems that are in service on or before December 31, 2020 will qualify for this credit. After January 1, 2021 the tax credit will then reduce to 22%. Starting January 1, 2022 the credit will phase out completely and there are currently no plans to extend the credit past 2021 for home owners.
In the state of Missouri, any taxpayer who paid a certified entity to complete a home energy audit or other efficiency improvements may take a tax deductionof $1,000 maximum per year per individual and $2,000 maximum for joint filing. A home energy audit must be performed before the implementation of any energy efficiency upgrades to be eligible for this tax deduction. Also, homeowners in Missouri are also encouraged to add solar energy systems to their homes with a 100% solar property tax exemption. Markets across the U.S. have noted solar energy adds 50% of the installed cost to the property’s value. Additionally, you will not pay a thing in taxes on all that added value! Plus, different statewide programs and utility company rebates may be in place at the time you are looking to install so ask us today if you qualify for any other incentives!
Solar Renewable Energy Credit Program (SRECs)
The Illinois Power Agency has developed electricity procurement plans to encourage homeowners and business owners across the state to install solar photovoltaic systems. Based on your system size, this program has the potential to credit an additional up to 35% of your total system costs.
Net Metering and Utility Company Rebates
In addition to net metering with your utility provider, certain utilities provide additional rebates for installing solar photovoltaic energy to your property.
Government and Non-Profit
RECs are tradable, non-tangible energy commodities that represent 1 megawatt-hour of electricity generated from an eligible renewable energy source. Select markets are participating at different levels so check in with us today about the options in your state.
Non-profits, Government buildings, and public schools are unable to take advantage of the Investment Tax Credit or MACRS Depreciation since they do not have an annual tax liability. The following rebates and incentives are available to those entities. EFS Energy also works with a financier that offers a discount to these entities to offset the lack of tax credits available. Contact a Solar Consultant today to find out how you can save on your project cost for your non-profit today!
Ameren Illinois Customer Generation Rebate – Rider CGR
The Ameren smart inverter rebate will be made available to business customers who have adopted solar utilizing SunSpec compliant inverter technology. Rebates will be provided once for each Eligible Facility, and calculated on a per watt basis of nameplate generating capacity measured in nominal DC power output at a rate of $250/kW. Upon approval of a rebate application, a Customer served by the Private Generation Facility shall no longer be entitled to receive any delivery service credits for the excess electricity generated by its facility. Annual net metering for supplier charges will remain active.
Solar Renewable Energy Credit Program (SRECs)
The Illinois Power Agency has developed electricity procurement plans to encourage homeowners and business owners across the state to install solar photovoltaic systems. Based on your system size, this program has the potential to credit an additional up to 35% of your total system costs.
Net Metering and Utility Company Rebates
In addition to net metering with your utility provider, certain utilities provide additional rebates for installing solar photovoltaic energy to your property.
Rural Energy for America Program (REAP) Grants
If you own a business in a rural area you may be in a REAP eligible area. REAP Grants award you up to 25% of your solar project. EFS works with a grant writer that has success in helping put our customers in a great position to be awarded one of these grants. Contact an Energy consultant today to find out how you can qualify!
