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Inflation Reduction Act to Extend Solar Tax Credit for 10 Years

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Commercial Solar Energy Trends 2022

Solar Energy Trends for 2022

Learn About the Solar Energy Trends for Commercial Buildings and Businesses Located in Florida

As we wrap up the first quarter of 2022, we remain busy with solar installations throughout the state of Florida, with one of the most extensive backlogs we’ve ever experienced. The worldwide materials shortage continues to be a big problem, especially regarding pricing. We’re all seeing and feeling these cost fluctuations in our daily lives. As a company, we are having difficulty getting prices from manufacturers, so our contracts will note that materials pricing will be confirmed at the time of the order.

This worldwide shortage of raw materials has created many challenges for construction and solar, with everything considerably behind production schedules. We are working with all our customers to navigate these waters by using our purchasing power, longstanding relationships, and inventory to secure and stockpile items which put us in a better position than most. We can purchase and store materials to get them to you quickly with seven buildings throughout Florida.

We’re excited to welcome Julia Barton to our Business Development team at Advanced Green Technologies. Julia and the team are busy with a robust backlog of solar projects throughout Florida, and the demand for solar carports and roof systems is forecast to increase into 2023.

Demand for Solar Heating Up in 2022

Overall demand for commercial solar will remain strong for the next three years as the Solar Investment Tax Credit (ITC) phases down from 26% to 10% after 2023. The credit drops to 22% next year, so if you’re considering solar, give us a call as soon as possible to get the most savings.

There are a few new projects in the pipeline that we’re excited about, including a large-scale commercial battery energy storage system (BESS). We are also working on a few notable projects, including installing a solar roof at Mitsubishi Hitachi Power Systems America in Orlando. The 1.715 mW roof features Astronergy CHSM72M – HC 415W panels with a PanelClawFR ten racking and Canadian Solar 100KW inverters. The system has a potential energy offset of 13% of Mitsubishi’s total energy usage and will be completed in October of this year, so stay tuned.

We’re also breaking ground at four sites within the Seminole Tribe of Florida’s Big Cypress Reservation. The total 448.49kW system features a combination of a solar roof, carport, and ground-mounted arrays, using Chint inverters and a Flexgen Battery Energy Storage System (BESS) at each location. These systems are a first of their kind in Florida, with the ability to provide control over the utility grid, diesel generators, solar inverters, and the BESS at the same time.

The Tribe will have the ability to power its critical infrastructure in an outage, smooth-rolling brownouts (an intentional or unintentional drop in voltage in an electrical power supply system, used for load reduction in an emergency), and reduce utility demand without ever touching a button with the state-of-the-art Flexgen control system, batteries, and the AGT solar arrays.  The solar arrays will replenish the batteries daily in a long-term outage, providing long-term resiliency with the existing diesel backup generators.

Hurricane Season is Coming

Even though we just entered spring, our team is hard at work preparing for the upcoming hurricane season. This is the perfect time to have us inventory your roof to check for debris, drainage, etc. We will have materials on hand throughout the season, though I’m unsure how much. We may need to provide temporary patches before installing a permanent solution. Customers can rest assured that we will be on top of our game, as we’ve always been, getting your buildings safe as soon as possible.

Join us for our online webinar “Hurricane Season Preparedness: Are Your Commercial Rooftop, HVAC, and Solar Equipment Ready?” on May 5 from 11 am to 12 pm. We’ll go over tips to prepare your commercial roofing system, HVAC, solar energy equipment for a hurricane or significant storm, and more. Register here.

Looking Forward

As we know, it’s getting increasingly difficult to predict the future, but Florida’s economy continues to look bright, with lots of growth and money flowing into the state. Historically, as real estate prices increase, people spend more on their roofs. But the shortage of materials and labor will continue to be a challenge for our industry, one of the biggest I’ve experienced in the 40 years. The labor shortage continues with no end in sight, even as our company provides raises and expands its recruiting efforts beyond state lines.

These challenges will continue throughout 2022, with the first quarter of 2023 hopefully seeing some sort of normalcy with materials and pricing, so hang in there. As always, we will continue to provide exceptional customer service that hopefully makes navigating the challenges of these past few years a bit easier. Let’s make it a great rest of the year, hoping for a brighter and peaceful 2023!

Federal Solar Investment Tax Credit Extends Until 2023

Solar-Investment-Tax-Credit-Extension

Impacts of 30% Solar Investment Tax Credit Extension on Florida

The solar Investment Tax Credit (ITC) started in 2005 under the Energy Policy Act (P.L. 109-58) and is the most important federal policy to support the installation of solar energy projects in the United States. Through the ITC, a business can receive a 30 percent federal tax credit for installing solar on their property. Since the eight-year ITC was put into place, thousands of companies have taken advantage it to reduce their tax liability, increase property value, and show their commitment to a sustainable future. However, as the end of 2015 came near, many industry experts, including our company, felt the program would expire completely or be reduced significantly. Thankfully, on December 18th, 2015, with only a few short weeks remaining in the program, Congress stepped in to extend the ITC until 2023.

The bill extends the 30% Solar Investment Tax Credits for both residential and commercial projects until 2019, and then reduces the credit to 26% in 2020, and 22% in 2021 before dropping permanently to 10% for commercial projects and 0% for residential projects. Also, the bill includes language to allow project owners who start construction before the end of 2021 to be allowed a larger credit following the completion of their project, as long as it’s in service before the end of 2023.

The table below shows the expiration date for solar technologies based on when construction begins and the value of the investment tax credit for each technology by year.

ITC Future Stepdown

For business owners in Florida, the extension presents an excellent opportunity to install solar on a commercial property while taking advantage of the full 30% tax incentive until 2019. “We’ve see a significant increase in demand of businesses wanting solar on their assets since the extension was announced,” said Advanced Green Technologies Vice President Clint Sockman. He further adds, “With a 5-10 year project ROI now is the time to go solar, as we may never see incentives this aggressive again.”

Overall, the extension to the ITC is expected to add 95 gigawatts of solar power in the United States over the next five years, the equivalent of powering 19 million homes, according to Solar Power World Magazine. Furthermore, by 2020, the industry is expected to employ up to 220,000 additional workers while helping to offset 100 million metric tons of CO2 emissions, equivalent to removing 20 million cars off the roads.

ITC Extension Impacts

  1. 19 MIL homes powered by 2020
  2. 5% of energy up from .01 by 2020
  3. 30 BIL private equity funding by 2020
  4. 220,000 jobs over next 5 years
  5. Offset 100 MIL Metric tons of CO2 emissions
  6. 3000% increase in solar capacity to 100 GW by 2020

How do you feel the extension of the ITC will affect your community? Do you have any questions about the program? We would love to hear from you. Please leave your comments below.

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