Solar with Batteries vs. Generator: A Cost-Benefit Analysis

In the realm of backup power solutions, homeowners and businesses often find themselves choosing between traditional generators and modern solar systems with battery backup. While both options provide energy security during outages, their long-term costs and benefits differ significantly. In this case we are looking at a larger, whole-home sized generator and comparing it to a solar system that produces as much or more power. See table below for comparison of costs, savings and benefits.

Renewable Energy and IRA 2022

Quick take for Inflation Reduction Act 2022

The Inflation Reduction Act is a huge legislation act passed in 2022. It includes increases in taxes (mostly corporate related), limits to some spending (like drugs), and a lot toward energy efficiency and renewable energy. See the overview on Wikipedia: https://en.wikipedia.org/wiki/Inflation_Reduction_Act_of_2022

Renewable Energy Incentives. The IRA has raised and extended the 30% investment tax credit to qualified renewable energy investments. There are many limitations and additions. Look for updated blogs here and get informed from the IRS and Treasury. 

Renewable Investment Tax Credit (ITC) is Extended Two Years

 

Good news, as of January 2021 the ITC has been extended at 26% for 2021 and 2022. See Solar Energy Industry Association (SEIA) discussion on the investment tax credit (ITC) here: Solar ITC Rate Per Year. 

This means that the calculator we developed for residential and for business solar investments will still be accurate for the next two years. (See our Solar Profit Calculator page.)

Woo Hoo! Happy Days!:-)

During that time Biden administration should start to remove the fossil fuel subsidies, meaning that renewables should continue to take share from coal, oil and gas. There's two other things that Biden will likely do: extend renewable incentives; and, institute a cost structure for carbon. Only the renewed incentives was likely before the US Senate went 50+1 for the Democrats. Something like a gas tax increase or a cap-and-trade program was highly unlikely just a month ago.

Solar Investment is Crazy Profitable for Businesses and Good for Homeowners

[Update. The Inflation Reduction Act 2022 has raised and extended the 30% investment tax credit to qualified investments. There are many limitations and additions. See our Blog post here. This makes all the financial discussions below much more profitable. Also, higher inflation and higher power inflation. The below Article was originally published in Summer of 2020.]

 

SBP has done several detailed financial calculators for analyzing both residential and commercials solar projects. SustainZine has a main web page on Solar Profitability where we discuss examples from our Solar Profitability Calculators: https://www.sustainzine.com/p/solarinvest.html ... Here are articles – and YouTube videos – discussing both:

1. Quick Take on  Residential Solar: Solar Invest 2020: Do Good and Save Money Too … See the video related to Residential here: Solar Residential: Good Investment & Doing Good
2. Full Financial Analysis: SolarInvest2020: Residential Solar is Good, but Commercial Solar can be Crazy Profitable! … See the video related to Commercial/Business here: Solar for a Business can be Crazy Profitable: Do Good by Doing Well

YouTube Video on Residential: Solar Residential: Good Investment & Doing Good https://youtu.be/p0pqg4ZeTjY

Dr Elmer Hall talks about the doing good and making money at residential Solar. He discusses that subtilties of the financial analysis for a homeowner, and why it typically is a far better decision than a typical profit analysis would suggest. #SustainZine #Solar #RenewableEnergy #SBPLan

YouTube Video on Commercial Business: Solar for a Business can be Crazy Profitable: Do Good by Doing Well https://youtu.be/ulryBkhsKWg

Dr Elmer Hall talks about the doing good and making money by a business installing Solar. He discusses the financial analysis for a business and why it probably is such a great investment. The investment for businesses has huge tax savings. Plus, the money to pay for power to operate the business is already committed if the building is used. This is Part 2: See part 1 related to Residential as well. #SustainZine #Solar #RenewableEnergy #SBPLan #Profitability #CrazyProfitable 

Solar-Fit Radio Show: Gallagher and Hall Talk Home is Castle and Solar Fitness

Elmer Hall on Solar-Fit Radio

Solar-Fit Renewable Energy Radio Show. June 20, 2020, Live at 10am ET.
Bill Gallagher, President/CEO of Solar-Fit (and world renown talk-show host) is interviewing Dr Elmer Hall (Strategic Business Planning Company). We're talking about Perpetual Innovation(tm), Hall and Hinkelman's book series on intellectual property (Patents) Commercialization. Then talking about about the COVID abnormal (and new-abnormal). And lastly move on to talk about renewable energy as people spend more time in their Castle (living, working, safe-distancing). What does this movement to update and improve the castle mean for Solar???...

Listen to the archive of this show on Flagler Broadcasting: Dr Elmer Hall on Solar-Fit Rewanable Energy Show June 20 2020.

Note that SustainZine has pages devoted to the Financial Analysis of Solar System Purchases (both Residential and Commercial). Residential is a good investment; Commercial can be crazy profitable!

Here is a long SustainZine article from a May 2018 radio show related to Energy Efficiency and Telework.

(Remember that the Renewable Investment Tax Credit was 30%, then dropped down to 26% in 2020 and will continue with a very rapid phase out over the next couple years.)

#Solar-Fit #SustainZine #Solar #RenewableEnergy #EnergyEfficiency
Here is the Solar-Fit radio show station:Solar-Fit Renewable Energy Radio Show
(We'll let you know as soon as this show is archived for your redo, review, renew!)