FREQUENTLY ASKED QUESTIONS

INVESTMENT TAX CREDIT

For more details on what you will qualify for in tax credits, please consult a professional tax advisor. 

 

The Investment Tax Credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. The residential ITC is equal to 30 percent of the basis that is invested in eligible solar property which has begun construction through 2019. The ITC then steps down according to the following schedule:

LOAN PAYMENT STRUCTURE/REAMORTIZATION 

Your loan is structured to give you the benefit of paying down the 30% Federal ITC into your loan so that your initial monthly payments are kept low. After month 18, your loan will re-amortize, and your new monthly payment will be adjusted so your loan is fully repaid by the end of your term. There are 3 scenarios for your new monthly payment:

  • If you pay down your loan 30% (Federal ITC) by month 18, your monthly payment will remain approximately the same throughout the life of your loan.

  • If you do not pay down your loan 30% (Federal ITC) by month 18, your new monthly payment will be higher than your initial monthly payment.

  • If you pay down your loan by more than 30% (Federal ITC) by month 18, your new monthly payment will be less than your initial monthly payment.

WHAT HAPPENS IN A POWER OUTAGE?

In the event of a power outage your home will act as it did before solar meaning that you will lose power until the grid is restored. 

WHEN WILL I RECEIVE MY ECOBEE CHECK?

The check for your Ecobee installation will be mailed to you within 7 days of the completion of your solar installation.

WHAT IF I HAVE PROBLEMS WITH MY ECOBEE?

Ecobee’s warranty can be found here. This page will walk you through how to redeem your warranty for a replacement product. If it is an electrical issue, contact your electrician or the company you used to install your Ecobee. 

WILL I STILL HAVE A UTILITY BILL / HOW NET METERING WORKS

When your panels produce more energy than you are using, the extra electricity is sent back to the grid. When this happens, you receive credits from your utility. When you use more energy than your panels produce (at night, rainy days), you use electricity from the grid (your utility). Therefore, you will see ups and downs in your utility bill throughout the year but your total bills (with credits and charges) should relatively even out and your annual savings should be greater with solar (assuming that your energy consumption did not drastically increase after your solar was installed).

SEE EXAMPLE BILLS BELOW:

CLAIMING YOUR SOLAR TAX CREDITS

Please follow the steps below to guide you through the form : 

  • Refer to line 1,  fill in the total cost of your system as it is listed on your invoice

  • Next, fill in line 5 and 6. Line 6 should match the amount of your federal tax credit as listed on the proposal given to you by your sales representative. 

  • It is important you fill out any other sections of the form if you have additional viable residential energy credits to apply for.

  • Fill in line 16 if you do not have the tax liability to use the entire credit this year and would like the remainder to be rolled over to next year.

  • File this form with your federal taxes. 

For more information on claiming your tax credits, please contact a tax professional or for particular documents contact Palmetto at 855-339-1831 or

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