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    • Portfolio
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Solar Energy Systems, LLC
  • Home
  • Elevation Battery
  • Resources
    • How Solar Works
    • Net Metering & Finances
    • FAQs
  • Products
  • Portfolio
  • RV
    • Why RV Solar
    • RV Products
    • Inverter Service Center
    • RV Portfolio
  • Reviews
  • About Us
    • Our Team
    • Careers
    • Contact Us
    • Get A Quote
    • Our Installs - SirenSolar

Net Metering & Net Billing

Net metering is an agreement with the customer and the electric utility, where the utility agrees to buy the extra power the solar system produces for the same price that the customer pays the utility for electricity. Any excess electricity generated is banked to the customer's account for future consumption.


Net billing and net metering are almost the same, but in a net billing agreement, the utility only provides credits equal to the wholesale cost of electricity, which is usually only a fraction of what the customer would pay for the same electricity. This provides a slower payback for a solar system. For example, if a customer pays a rate of $0.12 per kilowatt hour (kWh), they would only get credit of $0.03 per kWh or $0.04 per kWh for the extra electricity their solar system produces. In a net metering agreement, if a customer pays $0.12 per kWh, they get credited $0.12 per kWh for the extra power they produce. 

Financial Incentives

Financing

26% Federal Tax Credit

26% Federal Tax Credit






Solar Energy Systems has partnered with PowerPay, a digital lending platform, that offers home improvement financing. For more information, please click here.

26% Federal Tax Credit

26% Federal Tax Credit

26% Federal Tax Credit

The federal government provides a 26% Federal Tax Credit on all solar systems. This essentially acts as a 26% discount that you receive with your tax refund. Almost all customer's are eligible for this, with the exception of some non-profits. 


For the most current solar tax form, please click the picture above.

SRECs

26% Federal Tax Credit

Grants

SRECs stands for Solar Renewable Energy Certificates . An SREC represents the production of 1 MWh of solar energy. They are an extra value placed on solar energy because of its environmentally friendly or "green" attributes. Utilities and companies in states that require a percentage of their electric load to come from renewable energy buy these certificates to help reach their required percentage. 

Grants

Depreciation (Businesses and non-profits only)

Grants

The USDA REAP Grant creates opportunities for rural businesses to grow and prosper. The grant is limited to small rural businesses and agricultural producers. These grants can cover as much as 25% of the cost of a solar system, improving the payback of the system significantly. Projects must be installed in a rural area. Click HERE to see if your business and / or farm is eligible. 

Depreciation (Businesses and non-profits only)

Depreciation (Businesses and non-profits only)

Depreciation (Businesses and non-profits only)

Solar energy systems are a depreciating asset and can be written off on taxes like any other depreciating asset. This can lower the cost of your system by as much as 25%.

Feed-In-Tarriff

Depreciation (Businesses and non-profits only)

Depreciation (Businesses and non-profits only)

 Receive a check for the amount of energy you generate!

Feed-in-Tariffs allow customers to sell their power, produced by solar, back to NIPSCO. They offer options for customers wanting to install renewable energy sources to their homes and businesses. Please note, availability is limited. For more information, please click HERE


*NIPSCO must be your current electric provider. 

Solar Costs & Payback

How to Calculate the Actual Cost of Your Solar System

The payback period for every solar system is going to vary, because each system is engineered with slight differences to fit the customer's needs and some may receive financial incentives. On average, the payback for residential customers in Indiana is 8 to 10 years, and 6 to 8 years for commercial customers. If a business receives a grant, the payback can be as low as 4 years. Below is an example system to illustrate how to calculate financial incentives into the final cost of a system.


Example System:

Up Front Cost: $35,000

Federal Tax Credit: $9,100

SRECs: $260

Utility Savings: $1,600

Actual System Cost : $24,040


Additional Savings for Businesses

Depreciation: $8,750

Grants (not guaranteed): $7,350

Adjusted Actual System Cost: $9,851



Note: to calculate the adjusted actual system cost, the grant amount needs to be subtracted from the up front system cost in order to determine the new federal tax credit. You cannot receive a tax credit on the grant contribution. In this case, the new up front cost is $27,650 and the new federal tax credit is $7,189. 

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8015 W. 1350 N. Nappanee, Indiana 46550, United States

PH: (574) 773-0546 Email: Info@sesindiana.com

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