Solar 101

GO GREEN, GO SOLAR.

There has never been a better time to go solar in the United States. Abundant sunshine lights up a landscape interspersed with world-class corporations, banks and Universities that have incubated a culture of innovation and progress.

Now, the United States is positioned to emerge as the leader in solar installation and lead the change in the defining economic shift of this century: RENEWABLE ENERGY ADOPTION.

Solar is now viable and cost-effective. Energy- the world's biggest industry and the engine that moves the modern economy- is close to dramatic change. As renewable energy technology advances, the conventional, centralized, grid-based energy dissemination platform is becoming more and more outdated.

In fact, the energy market is outdated. It hasn't really changed in over 100 years.

A BRIEF HISTORY OF ENERGY

In the early 20th century, companies were competing to gain market share of the burgeoning energy market. However, this competition often led to duplicate generation plants and distribution infrastructure, which had high fixed costs and was incredibly inefficient. The capital intensity, paired with the investment uncertainty, posed a significant challenge for participants in the market to operate effectively and efficiently. Because of the inefficiencies of the energy market, the government deemed energy a "natural monopoly" in which regulation fulfills the role that competition fills in a traditional free market. The modern energy market, therefore, is largely based on 100-year-old technology and is incredibly inefficient.

Because this method of electricity distribution crosses city, state and regional lines, the government has to be involved. Government regulation and fossil fuel generated energy are necessarily very closely connected.

PROGRESSIVE GOVERNMENT POLICIES

The United States has been progressive (albeit not as progressive as many European countries have been) in implementing policies and bills to help propel renewable energy adoption.

Employing the right to regulate within the state provided by the 10th Amendment, States have implemented their own tax-incentives and policies to spur renewable energy adoption.

To encourage solar adoption, there is a 30% Federal Tax credit in place. That means that 30% of the expenditures of the installation of a residential solar system will be credited to the homeowner's federal tax liability.

Additionally, most states provide their own solar installation tax credits that correspond to one's state tax liability.

This site is designed to educate the homeowner with up to date government tax incentive information in a digestible and clear manner.

Most of these tax credits are considerable, but as of now many of them expire in December of 2015.

INDUSTRY SHIFT

Since solar (and other renewable technologies) are becoming more widespread, the energy market is in a volatile stage. After 100 plus years of very little innovation, distributed energy generation is reconfiguring the old energy market into a new, more responsive and more efficient 21st century industry that will only continue to evolve. But changing the world's biggest industry is not going to happen overnight.

ENTRENCHED ENERGY INTERESTS ACKNOWLEDGE THIS PARADIGM SHIFT, AND THEY ARE FIGHTING TO QUELL ANY FURTHER ADVANCEMENT.

The preexisting companies are fighting to prevent solar adoption. Using monopolistic control they are starting to undercut the cost of solar by lowering their prices. It is a market that has historically been opaque, and the emergence of distributed energy is providing consumers with energy options for the first time in modern history. The change may be slow, but solar (and other renewables) will eventually win simply because they provide better economics to homeowners and utilities alike.

Duke Power, of Charlotte, recently unveiled plans to invest 500 million in solar to be in accordance with North Carolina's renewable energy guidelines. In rural stretches of North Carolina, land is cheap and is where construction of CPV (Concentrated Photovoltaic) solar plants will take place. They realize that solar power generation is economically viable. The power behemoth Georgia Power is seeking approval for ten new solar power plants worth a total of 515 megawatts of capacity (put in perspective, that's enough to power approximately 93,357 homes and dwarfs the state's 2013 installed solar capacity of 90.9 megawatts) planned for build-out in 2015 and 2016. The "primary evaluation criterion was economic benefits to customers... a meaningful economic impact on the Georgia economy," wrote the utility in its filing.

The market will undoubtedly go through an awkward stage as entrenched interests fight to prevent innovation, until eventually the best technology wins. Every industry experiences this, where the incumbent fights to maintain market share: landlines to wireless; traditional cameras to digital cameras; carbon based energy generation to sustainable energy generation. Innovation, after all, is foundational to economic growth.

The price of solar may change, it may fluctuate, it may be subject to competition from preexisting energy companies. The industry is in the initial stages of a historic shift. McKinsey and Co has stated that "the world is on the cusp of a resource revolution." Royal Dutch Shell is taking steps necessary to make sure they have the capacity to implement solar and other renewable technologies. Car companies are manufacturing electric vehicles following the runaway success of Tesla. Big, well-established companies are taking notice and pursuing these new technologies.

ACT NOW, NOT LATER

Because of the uncertainty of prices of energy in the coming years as the market shifts and evolves, there is no better time to go solar than now. Across the United States, consumers should take advantage of attractive tax policies sooner rather than later.

The power to change rests predominately in the hands of the consumer; the people purchasing solar systems to put on their roof and generate their own electricity.

Americans can choose to hesitate or they can lead the way in propelling renewable adoption which would, in turn, create jobs, stimulate the economy, mitigate climate change and reduce dependence on foreign oil. That's a nice mix of results.

The United States has been the crucible for innovation. We have built the world's most robust economy, driven by the American ethos founded on freedom and liberty. In order to maintain our competitive edge as a leader in the world, we must lead change in renewable energy adoption.

Economies are driven by consumers in a complex, bottom-up, adaptive system. Free-markets work. The natural monopoly that utilities have enjoyed for years is facing reconfiguration face to face, as they should. Recently, Uber and Lyft and other ride-hailing services have completely disrupted the Taxi industry, an industry, like energy, that was based on market control, not innovation and consumer empowerment. Why should we allow companies to control our energy usage if there are other choices available?

GOING SOLAR IS NOT A GREEN, BLUE OR RED IDEA. IT IS AN ECONOMIC IDEA. GOING SOLAR MAKES SENSE, AND IT MAKES SENSE TO DO IT NOW.

We are in the early stages of an unprecedented economic shift. We must act now to lead the change.