Blog

Go Solar Now Or Wait For Biden To Take Office

December 1, 2020 By In News No Comments

The big question many of our customers are asking: Should I wait to go solar until President-Elect Biden takes office and potential new incentives are announced?

 

Simply put: why wait? There are many unknowns within the green plan and questions around how much policy will get pushed through without a bipartisan Congress. Additionally, the ambitious clean energy plan is geared towards large impact change – which means, it will have a principal effect on utility and large-scale community solar projects. However, by putting 5% down clients will lock in current pricing and a minimum of 26% in Investment Tax Credits.

 

The energy plan has three primary agenda items impacting business owners and their solar projects:

 

  1. Investment Tax Credit: It has been proposed that the ITC credit will increase to 30% and potentially it could turn from a credit to cash-back, eliminating the need for tax liability. Historically, in Biden’s Vice Presidency administration, when the ITC was raised to 30%, businesses were able to apply it retroactively. Additionally, with the tax deadline at April 15th, should the opinion change prior to then, a business could make the decision not to apply the ITC to 2020 taxes.
  2. Rising Energy Costs: Biden’s plan to eliminate $20 billion/year in oil and brown energy subsidies and aggressive methane pollution limits for new and existing oil and gas operations may cause a short-term increase in energy prices as production shifts to renewable.
  3. Supply and Demand: COVID’s impact on the solar industry caused a massive surplus in materials. This drove the costs of materials down as manufacturing companies looked to generate operating cash. With demand expected to increase substantially, costs will increase – the current spot market has shown increases since the President-elect was announced. Manufactures will look to take advantage of the changing market and recover lost revenue.

 

The Solar Energy Industry Association (SEIA) would like to see Biden issue executive order to eliminate the tariffs on solar cells and modules, extend solar tax credits for at least five years and implement standalone credits for storage. Biden has said “On day one, Biden will use the full authority of the executive branch to make progress and significantly reduce emissions.”

 

So why go solar now? Customers who go solar now take advantage of 2020 pricing before it rises with increased demand. They can safe harbor the ITC rate (should it not increase) and yet, still will be able to leverage new incentives as outline by Biden and SEIA. Plus, they have a plan in place to mitigate or eliminate electricity pricing as energy costs rise. There is no game changing technology on the horizon for solar, so every day with the utility is more money leaving your business. De-risk the future of your business – go solar now – take advantage of the state and federal incentives, hedge against rising electricity costs, and lock in solar project costs before they begin to rise. Furthermore, the risk of waiting could be costly; if no new legislation in enacted, Federal incentives for solar will decrease every year, costs for power from the utility are expected to rise faster than inflation.

 

Recent Posts

Categories

Archives

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

Case Studies

  • Commercial Solar Case Study Property Management Company
    Wiley Property Management Case Study

    The installation of the solar array on the roof of storage facility is leveraging a limited regulation called “Group Hosting”. Group hosting is a method where a group of businesses or individuals share the installation and use of a larger solar array on a single property.

  • Bake Crafters Commercial Solar Case Study
    Bake Crafters Food Company

    Bake Crafters’ commercial solar array is a remarkable example of sustainability in action. With an output capacity of 800 kW and predictions of offsetting 770 metric tons of CO2 emissions.

  • Integra Commercial Solar Case Study
    Integra Biosciences

    Integra Biosciences’ Commercial Solar project achieves 22% IRR and aligns with the company’s global sustainability goals and commitments. The two installations total 572-kW and generate enough power to offset 844,000 kWh.

  • Commercial Solar Case Study - Kraft Power
    Commercial Solar Case Study – Kraft Power Power

    Kraft Power utilized American made solar panels to install a 57.5 kW system on their roof. The new rooftop solar system, will help Kraft Power offset 100% of the electricity usage every year.

Latest Posts

Testimonials

Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
PCS Wireless
A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
Kraft Power
A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
Tower Water
Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
Cardoza Flooring
A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
House By The Side of the Road