BecauseSolar is Simpler Than You Think
The three most common components of a solar panel system are: the solar panels, the racking system, and the inverter(s). There are two types of inverters, string inverters and micro-inverters. With string inverters, all of the solar panels connect to one inverter, which is installed and mounted to the side of your house next to your electrical equipment. With micro-inverters, one or two solar panels connect to each micro-inverter, which are mounted on the roof underneath the solar panels. BecauseSolar utilizes micro-inverters in 90% of our installations due to their increased power production and shade mitigation benefits. The solar panels capture the "sun" and produce DC (Direct Current) electricity. The racking system bolts to your roof and the solar panels bolt to the racking system. The inverter converts the DC electricity produced by the solar panels to AC (alternating current) which is "fed" into your home's electrical panel. Lastly, there are a few other parts commonly found in an installation such as, conduit, electrical wiring, fuses, safety switches and labeling.
After installation of the solar panel system your Utility company will come to your home and change out your existing electrical meter with a Net-Meter. The Net-Meter spins in two directions allowing you to get "credit" for the energy you produce from your solar panels. Simply put, when the sun is shining the meter spins backwards, when night arrives your meter spins forwards. At the end of the month you are billed on the net difference of energy used. If you produce more than you use, most utilities allow you to "bank" the credit for use in the next month.
INVESTMENT TAX CREDIT-ITC
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of the buyer of a solar panel system. Section 25D is the tax code section for residential properties. Commercial is claimed under section 48. The Section 25D residential ITC allows the homeowner to apply the credit to their personal income taxes, thus lowering their tax liability owed. This credit is earned when homeowners purchase new solar panel systems outright and have them installed on their homes.
Through 2019 this tax credit is equal to 30% of the purchase of the solar system. For example, if your system cost is $20,000, you get a 30% tax credit of the $20,000 spent or $6,000 to offset your tax bill. In 2020 the tax credit amount is reduced to 26%, 22% in 2021 and 10% in 2022.