The growing demand for batteries is the latest trend in the home energy revolution. New battery technology is empowering utilities, businesses, and homeowners to store all the clean energy being produced by solar systems. To meet this demand, solar installers should familiarize themselves with the value proposition of batteries for homeowners and how to make the investment affordable.
Any homeowner who has lost power for a long period knows what a frustrating experience it is to go days without hot water, to empty an entire fridge of spoiled groceries, and to elbow their way to a spare power outlet at the local coffee shop. What if all that frustration could be avoided? Solar installers can provide their customers with the convenience and security of backup power by incorporating a battery into the design of a solar system. Installing a battery and solar system can provide a variety of benefits beyond this peace of mind.
In addition to providing backup power, a battery could save homeowners money as utility bills evolve in the coming years. Non-bypassable charges, demand charges, Time-of-Use billing — these are all new types of fees and pricing schemes that utilities are introducing across the country. Time-of-Use rates, in which utilities set different prices for electricity at different times of the day, are already taking effect in California and will likely be adopted by utilities across the country in the years to come. Through offering battery installations, solar installers can insulate homeowners from future rate changes.
Battery technology has come a long way in the past decade. As the technology has improved, financing has reduced barriers to purchasing battery backup system. Best of all, the IRS recently indicated that batteries may be eligible for the same federal investment tax credit (solar ITC) that lowers the cost of solar. To be eligible for the tax credit, the battery must be powered solely by the clean energy of the solar system.
How does the solar ITC work? When homeowners install a solar system or a solar system with battery backup, they may be eligible to claim 26% of the project cost to decrease their tax liability (learn more about solar tax credits and tax liability here). Homeowners should consult with a tax professional to confirm their eligibility for the tax credit, which is a function of each homeowner’s unique financial circumstances.
Clear guidance from the IRS and customer-friendly financing for batteries have made it easier than ever for solar installers to meet the needs of their customers.
Sungage is pleased to be a one-stop shop for solar installers who want to install solar systems with battery backup. Our loan provides a unified financing solution with one monthly payment. If you’d like to learn more about financing for solar and batteries, then log into your Sungage portal or call 844-SUNGAGE.
Keith Lema is a Sales Enablement Specialist at Sungage Financial. In his free time, he enjoys photography, practicing Spanish, and religiously watching Boston sports teams.
For more information on solar and batteries, please feel free to call us anytime at 844-SUNGAGE (786-4243) or use our live chat.