FAQ
Answers to frequently asked questions and concerns
Tap into our expertise and gain a better understanding of solar.
Q: What are the financial benefits of solar energy?
A: When you install a solar energy system on your property, you:
- Save money on your electric bills - a properly designed system will
lower your monthly average usage-based electricity expense.
- Protect yourself from energy price inflation (up 90+% in the last 20
years).
- Add equity value - estimates vary from +4% to total property value up to
$6,000 per kWh added.
- Get 30% of the total project cost back with your next tax return,
through the Investment Tax Credit.
- Can get better interest rates than a traditional bank loan.
- Depending on the size of the system and your usage, over the course of
the life of your system, you can save tens of thousands of dollars or
much more. By insulating yourself from utility company rate hikes, you
keep your bills stable while everyone else's bills go up!
- The Tax Cut and Jobs Act changed how we can depreciate solar on the
federal level. Prior to 2023, businesses could
depreciate 100% of the cost basis in the first year. In 2023, businesses
can depreciate 80% of the cost basis in year
one. This will continue to decrease by 20% a year until it reaches 0% in
2027.
- Depending on where you live, local utility companies may buy your
surplus energy production. Sometimes they will pay you directly (this is commonly referred to net metering or buyback),
sometimes they will give you credit on your account.
Q: Isn't solar expensive? Is there a high upfront cost?
A: Most systems are financed, and those bills are designed to replace and lower
your regular electric utility bill.
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Q: Will I be paying two bills?
A: A main benefit of going solar is trading your usage-based electric utility
bill to a stable solar system payment (when you finance, which most do). You may
still pay a small fixed connection fee to the utility company (often around
$20/month).
Sometimes, when there is a wait period between installation and getting
Permission to Operate (PTO) from your local utility company. Your solar
financing payments begin after installation is completed. So if the utility
company makes you wait for PTO, you will still pay your regular utility
electricity rates until PTO is given.
Q: Will it be more difficult to sell my property?
A: With an owned and financed system, it is a simple one-page form to transfer
the financing agreement to the new owner. You can also just include the cost of
the system in your sell price and pay it off yourself.
Q: Will solar provide for my full electricity needs throughout the year?
A: Obviously it depends on where you live, and how much sun you get throughout
the year. If you have a battery-included system where you store your surplus
production, you should be covered for most of the year. There may be winter
months that the solar system doesn't produce enough to fulfill your usage needs,
and in those situations you would pay a regular usage-based bill to the utility
company. Keep in mind though, that despite this fact, by keeping your electric
bills stable for decades, you will, on average, still save tens of thousands of
dollars over the years.
Q: Why shouldn't I wait?
A: Right now, you are giving your money away to your local utility company. The
sooner you go solar, the sooner you begin to build equity with those
electricity-related bills. You also start locking in a stable monthly payment
versus paying varying and rising rates throughout the year.
Q: How do I qualify?
A: For residential clients:
- Title under property owner's name.
- Credit score of 600+.
- Total household gross income of $30,000+
For commercial clients:
- Title under property owner's name.
- Credit score of 660+
- Debt service under 1.2
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Q: Will this affect my insurance?
A: Most rooftop solar energy systems are covered by standard homeowner's policies, which doesn't change your insurance plan. However, you may need to increase the amount of coverage on your home to account to for the cost of the system., which can then raise your premium. (source: www.nationwide.com)
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Q: Does Skyward do commercial or industrial projects?
A: Due to our wide network, Skyward can service residential, commercial, industrial, agricultural and utility-grade projects.
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Q: Is solar a scam?
A: In general, solar is not a scam. The technology is proven to be effective and efficient enough to replace your utility company year-round, while also saving you money over time.
The reason that the solar industry may have a bad reputation is due to nefarious companies taking advantage of clients. Skyward prides itself on being an honest company with an ironclad policy to prevent predatory practices.
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Q: Is the technology ready for me to adopt it?
A: Solar technology has advanced significantly and become more affordable in recent decades.
Technology - From 1985 to 2019, absorption efficiency has only increased by 3% from 20% to 23%. It took 34 years to get 3% more efficiency! This may be too long a wait for most energy-conscious people.
Industry standard panels lose only an average of 0.5% efficiency per year. So over 30 years, panels should retain over 80% efficiency!
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Q: Should I get a battery with my new solar energy system?
A: If you are interested in being completely independent of the utility company, a battery-included system is a wise idea. A battery stores your surplus production, so you can use your solar-generated energy at night and throughout the year. It can also give you a stored energy buffer for the winter months which may not produce as much solar energy.
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Q: What happens in a blackout?
A: In a solar energy system without a battery - if you lose power, your system has an automatic safety feature to stop sending power to the grid. While the utility is working to restore power, your system will remain off to ensure that power will not be sent into the grid and potentially injure the workers in the area. This applies to most solar energy systems, which are grid-tied, which provides a higher level of stability.
With a battery-included system - the stored energy will kick in to supply your home with electricity, like a generator.
