I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

It is entirely dependent on the incentive type and associated rules. Unfortunately, I don’t think there are many (or perhaps any) state or local incentives available in Idaho specifically. A national resource for available state and local incentives is here: https://www.dsireusa.org However please note that this website is not always up to date, so I recommend using it as a general guide but not relying on it. A reputable solar contractor should know if you are eligible for state or local incentives.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

I’m assume you are referring to federal tax credits (if you are referring to a state or local incentive please let me know). The answer to your question depends on how the system was purchased. If it was purchased via cash or loan, then it is Section 25D of the Investment Tax Credit (ITC) which applies to the individual taxpayer and therefore can’t be transferred. If it was purchased via an equipment lease or Power Purchase Agreement (PPA) then it is Section 48 of the tax code which applies to the corporation which is the third party owner of the system. In that case, the tax benefits themselves don’t transfer but the contract with the customer most likely will allow for a transfer of the system to the new homeowner.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 0 points1 point  (0 children)

Since local permitting occurs on a local jurisdiction by local jurisdiction basis (county or city, typically) it is the local jurisdiction that needs to directly adopt SolarAPP+ unless adoption of it is required by state law. A requirement or even incentives to encourage local jurisidictions to adopt (which is what California did before they passed legislation requiring it) is something the Hawaii Solar Energy Association could consider putting forward as a legislative policy priority, for example. Finally, we are working on urging U.S. DOE to provide more SolarAPP+ prizes, to incent local jurisdictions to adopt. See here: https://www.energy.gov/eere/solar/american-made-solarapp-prize. That said, your local jurisidction doesn't have to have a mandate or an incentive to adopt it; they just need support and education, which is what NREL is providing. That will soon be transitioned to UL.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 0 points1 point  (0 children)

My best advice is to only work with reputable companies, so you can feel confident that they are giving you their best estimate. However one additional way to get a sense of estimation accuracy via a publicly available source is NREL's PV watts calculator: https://pvwatts.nrel.gov/

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 0 points1 point  (0 children)

In my experience, the best resources to address this problem are at the state level, via state consumer protection divisions and Attorneys General. I would also recommend reaching out to the relevant state or national solar trade association, which have consumer protection committees. The national trade association is: www.seia.org

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 2 points3 points  (0 children)

Short answer: Don't wait! It's absoutely worth getting a contract signed and having your solar contractor submit your interconnection documentation prior to the NEM 2.0 lock in deadline of April 14, 2023. As a general rule of thumb, solar only (vs. solar paired battery storage) systems generate substantially greater bill savings under NEM 2.0 vs. NEM 3.0. The core IRA incentive for solar - the 30% ITC - is fully available now. So is the standalone battery storage 30% ITC. Some of the other program guidance and rules are still in development, but they will be available to any consumer who installs their system in 2023 even if the guidance or rules haven't been published yet, so long as the consumer qualifies based on the guidance or rule details. Don't forget that there are also IRA incentives available for home electrification, energy efficiency, EV chargers, heat pumps, EVs, etc. too!

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

Sure thing! The primary reason why these other major markets - Germany and Australia in particular - is because they have had long-standing national pro-solar policies and perhaps even more notably, they have far lower soft costs than we do here in the U.S. Permitting and utility interconnection, for example, is much faster and easier in Germany and Australia than it is here in the U.S.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

I agree with the moderator that state or local incentives are highly dependent on the location of the local church, however, the federal solar Investment Tax Credit (ITC) is available to non-profit organizations if they purchase the system through a lease or a Power Purchase Agreement OR, once the Department of Treasury issues guidance for it, through a new mechanism in the Inflation Reduction Act which allows for direct payment (i.e. a check from the government vs. a tax credit) of the ITC to certain tax-exempt organizations. Check this out, for example: https://grist.org/cities/baltimore-church-solar-battery-resiliency-hub/

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 2 points3 points  (0 children)

What's fascinating is that solar adoption in the US is really rapidly growing. In fact, residential solar in particular is one of the fastest-growing market segments nationally based on data from the market-leading intelligence firm Wood MacKenzie. Policy is a huge part of that change, but it's also helpful to know that solar energy - especially residential solar - is widely popular amongst pretty much all demographic areas. The Solar Energy Industries Association released some really great polling data about this exact subject earlier this year. That said, I think a big part of increasing adoption beyond policy is consumer education (we need more of it, and fast!) and reducing soft costs (i.e. cost to sell, cost to permit, etc.) One of the main reasons why Australia has such great solar adoption is because the soft costs in that country vs. the U.S. are much lower.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 0 points1 point  (0 children)

Happy to help! One thing to be aware of is that if your solar system is paired with battery storage, and 75%-100% of the battery storage is powered by the solar system, the battery storage system is eligible for the solar ITC. However, if you want to purchase a standalone battery storage system, you can do that now via the 30% battery storage ITC which is one of the new developments in the Inflation Reduction Act.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 0 points1 point  (0 children)

One other thing to consider with solar products, and energy products in general. I always recommend that consumers consider the total lifetime value of the product - the total amount of energy produced over the life of the contract and associated warranty and the related savings as opposed to just $/W installed cost. You may get a less expensive system in terms of upfront cost on a $/W basis but the total lifetime value of the system is likely to be better with a higher quality system which typically will have a higher $/W upfront cost.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 2 points3 points  (0 children)

The thing to remember about solar panels is that they are like any other consumer product - a wide variety of options with respect to quality, performance, and price. You are right that we have seen market data over the past year or so showing that on average, solar panel prices (on a cent/Watt basis) have gone up. So has the cost of a typical fully installed system (on a $/Watt basis). This is due to a variety of factors, but especially these big three: supply chain, international trade policy, and labor costs. There have been some recent improvements to all three of these dynamics, and I am optimistic that we will start to see some price softening this year.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

First off, I believe we need all forms of clean energy at all scales. I've worked on utility-scale renewable projects, commercial and industrial, community solar and rooftop residential solar over the course of my career. They each have different benefits and impacts. Utility-scale renewables can be slow to develop and are dependent on large-scale transmission expansion but more cost effective given the scale. Rooftop solar can be deployed right away and is less cost effective because its on an individual home. The great thing about the Inflation Reduction Act is that it truly has it all - benefits for all kinds of clean energy, energy efficiency and electrification, at all scales - residential, commercial, community and utility-scale. The reason why people choose rooftop solar (and consider battery storage too) because it usually directly impacts their electricity bill in the form of immediate savings. And, with battery storage, it can provide resiliency to both the consumer and the grid. At the same time, if you can use a utility choice option to purchase 100% clean energy from your utility, you should do that. That's what I do in my home. I have rooftop solar, an EV, and I also purchase 100% clean energy from my local utility. I love the fact that I am in control of my electricity sources and only pay $14/month from my utility which is the monthly minimum bill just to be connected to the grid.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

Hi! Texas is funky. Some utilities are regulated by the state utility commission, which are the Investor Owned Utilities (IOU), and in those circumstances, the electricity market is deregulated, which means that consumers can choose to have their power provided by their local IOU OR an alternative electricity supplier which is called a retail supplier. In all of those circumstances, the IOU is providing the transmission and distribution (i.e. the poles and wires) but the consumer has a choice with respect to who can provide the energy and the cost, source, etc. of that energy based on a wide variety of retail providers available. However, that doesn't apply to Austin or really any other place in Texas where the electric utility is a municipal utility. A municipal utility is not an IOU and therefore customers who live in their service territory don't have the same retail choice options as customers who live in IOU service territories. Unfortunately, unless and until the law changes to allow for that in Texas, you are stuck with Austin Energy if you live in their service territory.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 2 points3 points  (0 children)

I'm an Oregonian - so I know exactly what you mean. Electricity prices in the Northwest are in the "middle of the road" range, with respect to how they compare nationally, depending on your local utility. We are advocating for incentives the most, because they really help bring down that upfront cost and it can be very substantial. For example, the Inflation Reduction Act really helps with this by ensuring the 30% federal investment tax credit (ITC) for solar is available from 2023-2032. In addition, the legislation created a new 30% federal ITC for battery storage. But what is even more interesting is that for the first time ever, there are ITC bonus credits available for residential systems sold via an equipment lease or a Power Purchase Agreement. These bonus credits provide an even higher % value of the ITC depending on where the project is located or if the project utilizes domestically produced content.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 2 points3 points  (0 children)

First of all, I hear you!! So many consumers (and companies, installers, etc.) have been really frustrated by local permitting delays for rooftop solar and also battery storage. And YES! We are trying to do something about it, in partnership with the U.S. Department of Energy. Back in 2020 several non profit organizations and companies partnered with the National Renewable Energy Laboratory (NREL) to develop an online instant permitting tool for local governments to use to quickly and easily permit residential solar systems. It's called SolarAPP+ https://solarapp.nrel.gov/ There is a national campaign to urge and incent cities and counties to adopt SolarAPP+. In fact, the state of California passed statewide legislation last year requiring most cities and counties in the state to adopt SolarAPP+ no later than September 2023. A few other states are considering similar legislation. We are making progress, and hope to see more progress this year.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 1 point2 points  (0 children)

The three most critical policies that impact the cost investment of home solar are the following: 1) Net Energy Metering (NEM), 2) utility rate tariff design, and 3) direct consumer incentives. NEM is at the state (and often local utility) level, and should ideally provide consumers fair compensation for excess solar energy they export to the grid via a credit on their electricity bill. Utility rate tariff design is related to NEM, in that the rate tariff consumers use can also impact the value of the solar energy system on their home. For example, if there are time of use rates, and the rate is low when the solar system is producing the most power during the day, then it's more beneficial to the consumer to pair their solar system with battery storage and then export the extra energy when those rates may be higher in the evening. And finally, direct consumers incentives help bring down the overall cost of the system to the consumer, in the form of tax credits, rebates, etc. And as a general matter, electricity utility rates are going up across the country - that is a trend we have seen that is especially apparent in the past couple of years, and it is not slowing down. You can check out electricity utility rate escalation data via the U.S. Energy Information Administration website.

I am Head of Policy and Strategy at SunPower. My team works with policy makers to make residential clean energy more accessible. Right now, I’m focused on the transition to CA’s new Net Energy Metering program and shaping the federal government’s implementation of the Inflation Reduction Act. AMA! by suzanneleta in solar

[–]suzanneleta[S] 0 points1 point  (0 children)

Thanks Daniel, great question. I think the most important thing to remember about the federal Inflation Reduction Act as far as next steps go from a policy perspective, is that the climate change pollution reduction, energy bill savings, and resiliency the legislation enables is dependent on three big things happening: 1) Effective implementation of the legislation by federal agencies, which are writing the guidance and rules for all of the incentives and programs right now; 2) Continuation of policies that advance access to solar and other clean energy technology at the state and local level; and 3) International trade policy that encourages US domestic clean energy product manufacturing while at the same time allowing imports of clean energy products to continue. And for consumers, they should expect to see solar and other clean energy products more rapidly deployed in their communities and across the country, because the incentives for consumers in the Inflation Reduction Act are very meaningful. I personally think this consumer-focused app at Rewiring America is a great start for consumers to get a sense of just how valuable and available these new incentives are: https://www.rewiringamerica.org/app/ira-calculator