Home Remodeling
Residential Solar Panels Save Money and Energy
Residential Solar Panels
Residential solar panels continue to be one of the largest trends in green building and energy conservation. With new government tax credits in place to those implementing green practices, solar panels are quickly becoming one of the most affordable ways to lower utility costs for the homeowner. No longer eyesores on the roof, home solar panels are now available in several styles that blend with tiles and shingles to create a seamless roof line and attractive streetscape. But how exactly do they work?
Solar roof panels consist of modules that contain solar cells and convert sunlight into direct current (DC) electricity. An inverter within the panel converts the DC power into alternating current (AC) electricity that is used to heat and cool the home, and also operate any home appliance or device. Homes connected to the utility electrical grid are known as grid-tied homes or on-the-grid systems, while off-grid homes rely on batteries and need to be a safe distance from power lines. Most homeowners choose to work on the grid due to the added security from the utility company. Depending on your electricity provider, you may be allowed a credit, or net metering, if your solar-powered panel produces an excess of energy.
For those concerned about bad weather or dark skies, no additional plan is needed. Residential solar energy systems still function on cloudy days by drawing upon backup electricity from the utility company (for on-the-grid systems), and the same is true during night hours. For off-the-grid systems, the panels are usually connected to a battery storage system as the backup power source and will extract energy if there is a deficiency that day.
Before installing solar power panels into an existing roof or new home, it is recommended to work with a custom home builder or general contractor. Many builders have existing relationships with solar panel integrators and can assist in determining the best position of the panels based on the amount of available sunlight in the various seasons. Although composition shingle roofs are easier to work with than tiled roofs, don’t worry if your home has the latter. There are now several solar modules available in gray, brown or terra cotta frames that are aesthetically pleasing and blend in with the home’s roof.
Not only are solar power panels becoming more attractive and saving the planet, they are also making daily living more affordable for homeowners. New federal tax credits reimburse homeowners 30% of the cost of their residential solar energy systems, while state and local incentives are in place to promote green building. The cost for upkeep is also very little as solar panels require very little maintenance other than battery replacement and a non-abrasive cleaning agent. With government support, low maintenance costs, more attractive products and lower monthly bills, residential solar systems are more widespread than ever before.
Home Remodeling and Energy Tax Credits
Energy efficient replacement windows in a home remodel can earn energy tax credits.
Conserving energy through the use of “green” products might not have been at the top of your list a few years ago, but thanks to the 2009 economic stimulus bill the government has made it financially beneficial to homeowners to work toward energy efficiency. Tax credits are available unlike ever before to homeowners who are planning a home remodel with green appliances and practices.
The 2009 economic stimulus bill improves upon pre-existing credits in a big way:
- 2009 tax credits are now in effect until 2010
- The 10% tax credit is now 30%
- Tax credits that were once a specific amount are now converted to 30% of the cost of materials
- The maximum credit is now $1500 instead of $500 and is for all improvements combined for the 2009-2010 period
- Certain home improvements, including geothermal heat pumps, solar water heaters, and panels are not subject to the $1500 maximum
Asheville remodeling contractors such as Brock Builders can perform a home energy audit to outline the areas that will benefit most from installing energy-efficient appliances and insulation systems. By installing a variety of energy-efficient items from the following categories, you may be eligible to claim a tax credit of 30 percent:
- Biomass stoves
- Exterior doors, skylights and windows
- HVAC
- Roofing (metal and asphalt)
- Storm doors and windows
- Water heaters (nonsolar)
Tax credits are also available at 30% of the cost, with no upper limit through 2016 (for existing homes and new construction) for the following categories:
- Fuel cells
- Geothermal heat pumps
- Solar panels
- Solar water heaters
- Small wind energy systems
The new tax credit does have a discrepancy, however, when it comes to windows. Energy Star windows purchased before June 1, 2009 are eligible for the tax credit of 30%, but not all Energy Star windows purchased after June 1 will qualify. To meet the requirements for the tax credit after June 1, the windows in your remodel must be super-efficient windows with a U-factor and solar heat gain coefficient (SHGC) less than or equal to .30. According to Energy Star’s website, most of their windows will not meet the requirements for the tax credit. These confusing standards are being reviewed by the American Architectural Manufacturers Association (AAMA), who are urging Congress to reconcile the stimulus bill standards with Energy Star criteria.
In order to qualify for the tax credit, all products must have a signed statement from the manufacturer certifying the product meets the standards for the tax credit. The Manufacturer Certification Statement isn’t required to send in with your tax return but must accompany your receipts and records. It is recommended by the National Association of Home Builders (NAHB) to save all receipts with the contact information of each manufacturer, the make and model of the product, and the manufacturer’s statement that the product meets the tax credit standards.
Whether you plan to do a basement, bath or kitchen remodel, hiring a general contractor familiar with these tax credits ensures your home remodel is earning the highest credits possible, the proper appliances and products are purchased and installed, and the specific records you need are organized. When helping the environment while saving money, everybody wins.
Large Home Remodeling Project Video
We put together this video showing some images of a major home remodel we have underway. This has been a fun, and challenging, project so far. Some rooms have been added and many Marvin windows installed. One of the more interesting features of this remodel is the outdoor pizza oven. We have also added some architectural features such as a large shed dormer and raised ceiling in the great room.
We’ll post more about this remodel as it nears completion. Stay tuned for some “after” photos and videos.
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