Let’s shine a light on Pennsylvania’s SREC Marketplace.
Pennsylvanians are currently benefiting from some of the best solar incentives in the nation. As you work on navigating the Pennsylvania solar energy market, it is important to have all the necessary information to make a savvy financial and environmental decision. Understanding PA solar panel incentive programs and processes can initially be a challenge. However, we’ve compiled some resources below to help you understand how the solar energy process works and most importantly, how to make it work for you!
During the day, a solar system that has been appropriately sized will produce enough energy to cover the energy needs of that home throughout the night as well. However, most of the energy that is produced is not used immediately and needs to be stored or used by neighboring homes and businesses. As such, the excess energy produced will go back into the grid. This excess energy is accounted for through a program called net metering.
Additionally, utility providers in Pennsylvania offer Solar Renewable Energy Credits or SRECs. The PA SREC program differs from the net metering programs because the SREC program was developed to strategically incentivize the proliferation of solar via a tradable commodity, the SREC, that operates on an open market. For every 1,000 kWh of energy generated by a qualified solar system, a single SREC is issued.
Utility providers in Pennsylvania are mandated to have a certain percentage of their electricity sales sourced from solar generations but can also reach the required percentage by purchasing SRECs from solar owners. These SREC sales are facilitated by a PA SREC broker. Upon your solar purchase, you will be contacted by a PA SREC Broker to discuss potential selling options for your excess credits. The broker will further assist in the purchase of the PA SREC by the power company, ensuring that the transaction is smooth and that the solar owner is getting fair market value. Additionally, the profits from the sales of PA SRECs and the programs available for net metering in Pennsylvania can help offset solar costs.
Net metering is a billing arrangement that allows solar owners to receive compensation, from the utility company, for the surplus energy in the form of a credit on their future energy bill. A solar energy system that is sized properly will ultimately achieve a net zero bill, where the customer does not owe the utility company anything by the end of the year.
A subpar product can affect the performance of your entire solar experience. At Lumina Solar, we searched far and wide until we discovered products we were satisfied ones we felt our clients would love.
To maximize the efficiency of your system, we’ve partnered with industry-leading manufacturers to ensure every step of our process brings the best to the table. Our comprehensive warranty supports this belief wholeheartedly.
We founded Lumina Solar with two goals in mind: helping home and business owners save money while making the planet an overall healthier place. Across the world, countries are formulating aggressive plans to transition their energy systems to green energy. We believe in doing our part to help accelerate this process by providing accessible solar energy to clients across Pennsylvania. If you’re interested in saving money and helping save the planet, you’ve found the right company.
Policymakers are working toward a green energy future and to help the transition from fossil fuels to renewables, the Federal government offers a Federal Income Tax Credit (ITC) for home or business owners that have made the move to solar energy. This incentive allows solar purchasers to qualify for a tax credit that is equal to 30% of the total system cost. Come tax season, your federal incentivization comes in the form of a one-time federal tax credit that can be applied to your federal tax liability. In the event that you can not use the entire 30% in one tax year, solar owners have up to five years to utilize that 30% credit in full.
On a state level, Pennsylvanians can benefit from the PA SREC program we discussed above or those local to Philadelphia may qualify for a $200 rebate for each kilowatt of solar energy that they install.
A consultation with your local licensed tax advisor is always important in order to understand what Pennsylvania solar panel incentives may work for your particular tax situation.
Choosing the right team for a home improvement job is the most important decision a homeowner can make. Lumina Solar empowers customers to have confidence in their solar purchases by ensuring clear communication with the client and a painless process. Lumina Solar has a proven track record and hundreds of satisfied customers. By offering residential and commercial solar projects in tandem with roofing, we can ensure that your project will be done with the best products and services. Our team understands the importance of the link between price, products, and service. We know the industry and are ready to assist solar customers in making the move the green energy. When dealing with local professionals, you know the job will be done right and, if there is any system service necessary, we are just a phone call away.
Despite this year’s record-breaking temperatures, experts warn that this is the coolest summer we will see unless there are changes made in how energy is produced. According to the EPA, 25% of emissions come from the production of energy. As greenhouse gases are heating up the earth at an exponential rate, it is our mission and duty as residents of this earth to make responsible decisions so that our grandchildren will still have an earth that is habitable.
In response to the call to action, solar markets in the United States are expected to triple in size over the next five years. Lumina Solar is prepared to continue serving communities with their solar needs.
As communities grow, the demand on the power grid increases. Making the shift to renewable energy reduces the long-distance demand for energy in neighborhoods and strengthens the grid during high-demand hours. By making the decision to go solar, you lessen the number of rolling blackouts, fortify your community in the event of emergencies and reduce unnecessary infrastructure that would be put in place. Funds not spent on infrastructure can then be allocated to more pressing community issues.
Utility companies increase rates nationwide at an average of 4% per year. By purchasing solar, home and business owners lock in the rate that they will be required to pay for energy. Plus, with solar, you do not have to continue paying for energy at whatever rate that energy is offered to you. After your system is paid off, you still get to benefit from your system’s production, you just don’t have to continue paying for it. Stay ahead of the curve and make an informed financial decision today.
Many people are familiar with the term ROI, but in renewable energy, return is often measured by the Environmental Return on Investment or EROI. The EROI of any renewable energy project is the amount of time that it takes for that renewable energy project to environmentally pay for itself by producing more clean energy than it took to produce or transport the products that the system is comprised of. Most solar systems have an EROI of around 7 to 12 years. By not using fossil fuels, solar owners are able to reduce their overall carbon footprint.
Energy prices from electric companies are rising and the move to solar energy is happening. By taking advantage of PA SREC programs and the 30% Federal Tax Credit, solar can make incredible financial sense. Solar also helps to preserve our beautiful earth for future generations. Regardless, if you’re looking to make a switch, Lumina Solar is the most qualified team to help you take advantage of all available PA solar panel incentives and get you the best return on your investment!
At Lumina Solar, we help ensure that you are able to make the most of your solar installation in Pennsylvania. Not only will you save significantly on monthly energy costs, but you’ll also have access to great incentives that reduce your expenses over time. Reach out today to get started.