Strange Days Ahead
As the days get shorter and the nights grow colder, there's a certain strangeness in the air. In the wake of the passing of the Inflation Reduction Act, things are great in the land of solar energy. People are enjoying larger tax incentives for longer periods of time, and our current Net Energy Metering agreement favors the consumer over the utility. But the season is not without its tricks, and for every treat of solar energy, there are nightmares lurking just out of sight. Price hikes, NEM changes, and failing providers are all lurking in the shadows for those who don't go solar with a reliable and reputable contractor. Simply Solar is here to protect you from everything in the industry that goes bump in the night, so be sure to seek out our expert consultants to help you make your solar installation a treat.
Stranger Solar
For those who decide to invest in solar energy, life is pretty good - especially if they’ve chosen Simply Solar as their solar provider. As a trusted partner with decades of solar experience, our goal is to make sure your life after solar is all sunshine and savings. But there are others who decide not to go solar, or who place their trust in companies without a solid foundation or long term plan.
There are risks to putting off your solar investment - rising prices, evaporating incentives, and even the prospect of signing with a solar company who will leave you stranded in the long run. As anyone on the fence can see, life without solar can feel a lot like being trapped in the Upside Down. Today, let us journey into the Upside Down of solar, where things have become a little… strange.
Costly Mistakes
Those who have avoided investing in solar are left in the hands of utilities like PG&E, who are more than happy to sap your savings. The cost of electricity has doubled in the last ten years, and this year alone, repeated price hikes have left power buyers feeling stricken by their skyrocketing bills.
Here’s a breakdown of the PG&E price hikes over the last few years:
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In 2019, the company increased residential electricity rates by 8%, and boosted gas rates by 11%. That move alone created an average monthly bill increase of about $19 for customers.
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In January of 2022, electricity rates went up 8%. In March of this year, there was another rate hike of 8.9% – translating to a bill increase of nearly $14 per month. PG&E’s gas rates, meanwhile, went up 11% in January alone.
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The utility has also requested annual rate increases of 3%-4% each year from 2024-2026.
Evaporating Incentives
The Solar Incentive Tax Credit has been a major player in making solar more accessible to all, but only for those who take advantage of it. Luckily for those who have yet to invest, thanks to the Inflation Reduction Act, this tax credit is poised to receive a generous extension - but this extension still has an end date, and it may decrease in value over time. Those on the sidelines of solar are letting time eat into the money they could be earning back from the newly passed 30% tax credit.
What is the Inflation Reduction Act?
The bill would be the country’s biggest climate investment in U.S. history, while also delivering healthcare subsidies for millions, and enacting a 15% minimum tax on corporations that make more than $1 billion in profits.
What does this mean for Solar Energy Adopters?
The bill contains a large mix of tax breaks intended to bring down the costs of solar, wind, batteries, cars, heat pumps, and other clean technology.
With the Inflation Reduction Act on the path to being passed, we have a huge win on our hands - a 30% solar tax credit, retroactive through the beginning of 2022, and slated to extend out for ten years. Ten years!
Stranded Solar
Solar is more than just a transaction - it’s a relationship that should last for the lifetime of the system. Not all solar companies are created equally however, and only the best will have a plan for long term success so as to continue to support their customers well into the future. Compromising on quality leaves these customers at risk for being stranded without the support of their original provider.
In order to protect against this kind of abandonment, you'll want to keep an eye on the kinds of guarantees your provider has in place. Make sure that their intent is to stick with you for the lifetime of your system, something in the 25 Year range. With a guarantee like the one offered by Simply Solar, you're backed by the best and covered on the work done, the performance of your system, and the longevity of your investment. Consult with the best, and avoid being stranded.
Conservation Calamity
Throughout all of these strange situations, the utilities have been generating their electricity with fossil fuels, which means producing pollutants en masse. Those of us in the sunny world of solar are able to take advantage of clean, renewable energy on demand, but those in the Upside Down are unable to contribute to conservation efforts. This is the hidden cost of business as usual - paying top dollar for pollution!
The solution is simple - make the switch to solar! The environmental impact of going solar is clear, and you can see for yourself how the offset of pollution by just one system can create tremendous results. Our case studies are a great way to see how, over the course of 25 years, you can make a difference while saving thousands on your energy costs!
Solar Made Simple
As you can see, this world without solar is quite unpleasant, and even those who make the switch can get stranded without quality support. Luckily for all of us, there’s a surefire way out of the Upside Down - Simply Solar takes the strange and makes it easy. You can take control of your energy usage, and turn your expenses into an investment in your home and your planet. With Simply Solar, you won’t be stuck paying for pollution, and you won’t be left stranded without service for your system!
