Frequently Asked Questions

Payback is usually the time it takes bill savings to equal your net out-of-pocket cost. A solid estimate uses your annual electric use, expected solar production (often modeled with tools like NREL's PVWatts), your utility's rates and how exports are credited, and incentives. Ask for the year‑by‑year cashflow assumptions, not just a single payback number.

As of July 2026, the federal Residential Clean Energy Credit is 30% for qualifying systems placed in service from 2022 through 2032, then 26% in 2033 and 22% in 2034. It applies to eligible solar electric costs (including labor) for a U.S. home, is claimed on IRS Form 5695, and is generally nonrefundable (unused amounts may carry forward). Stand‑alone battery storage of 3 kWh or more can qualify.

Net metering is a billing method where some or all exported solar energy can offset your imported energy, but the details vary widely. Depending on your state, utility, and tariff, exports may be credited at the retail rate, a different rate, or with specific limits and rules. Always confirm how credits are calculated, when they expire, and whether you're on a time‑of‑use plan.

With a solar loan (or cash purchase), you typically own the system and may be eligible to claim the federal credit if you meet IRS requirements. With a lease or power purchase agreement (PPA), a third party typically owns the system, and the homeowner generally does not claim the federal credit. Compare total cost, contract length, maintenance responsibilities, and what happens if you sell the home.

Batteries can provide backup power and help you use more of your solar at night, especially if your utility credits exports at less than the retail rate or uses time‑of‑use pricing. For the federal credit, energy storage devices with a capacity rating of 3 kWh or greater can be included (including stand‑alone storage). Ask for an outage plan: which circuits are backed up and for how long.

Be cautious if a salesperson guarantees savings without showing assumptions, won't provide a clear financing APR/fees, or says incentives are «automatic» without explaining eligibility. If a PACE (property tax–based) financing option is offered, understand that it is repaid through your property tax bill and can create serious risk if payments become unaffordable. Also know that some door‑to‑door sales have a federal three‑business‑day right to cancel, but it doesn't apply to every solar transaction.