Common Homeowner Questions [production, usage, and utility bills]

Background:

A homeowner may contact support through a phone call, chat, or email requesting clarification on their production, usage, and utility bills. The following questions are common (and growing) questions from homeowners. With the introduction of the Early Access Communications initiative (where homeowners receive communication from EverBright much earlier in the process), Customer Support expects to get these questions earlier in the process as well. We’d also like to prepare agents for the in-flight tax season.

Common Homeowner Questions

Will I receive a tax credit/refund?

Certain homeowners may be eligible for solar tax credits that can help to reduce the amount owed on federal income taxes. There could also be state or local utility credits or incentives available. You should contact your tax preparer for guidance on matters like this. You may also refer to the Department of Energy’s Homeowners Guide to Federal Tax Credits (able to share the website with the homeowner by email or chat).

[If more information is needed/requested]:
While EverBright is unable to give specific tax advice, let me share a little more information that might help as you look further into your eligibility for federal solar tax credits, which are also referred to as an Investment Tax Credit, or ITC. As you may or may not know, eligibility for federal solar tax credits depends on whether you own the system or have a lease or Power Purchase Agreement (PPA), among many other factors. You should discuss these issues with your trusted tax professional.

[If Lease / PPA]:

It looks like you have a lease or PPA...

Homeowners who have entered into a PPA or lease for their system are not eligible for the federal solar tax credit because, in these cases, you don’t own the system. Again, you should talk to your tax preparer for guidance on any current or future clean energy or energy efficiency-related home improvements.

Optional other point: Keep in mind that your PPA or lease from EverBright has helped you go solar at a lower monthly cost than buying the system outright. So, while you’re not eligible for the credit, you can still recognize the many possible benefits from solar.

[If RIC]:

It looks like you bought your system with EverBright financing...

Those who own their system, like you, may be eligible for a federal solar tax credit. The tax credit could be worth up to 30% of the cost of your solar system , including panels, batteries, and inverters (but not roof repairs or other add-ons). You should speak to your tax preparer about your eligibility, how much you can expect, and for other guidance about how tax credits work.

Related SOPs

How will I receive a tax credit/refund?

If you are eligible for a federal solar tax credit, it is applied as a credit — or dollar-for-dollar reduction of what you would otherwise owe — on your annual income taxes. You should speak with your tax preparer about your eligibility and when or how it could or should be applied to your tax liability.

When will I receive a tax credit?

If you are eligible for a federal solar tax credit, your tax preparer should be able to tell you when (what tax year or years) the credit should be applied. Generally, it’s based on when your system is installed and operational — or after what’s referred to as permission to operate (PTO). Discuss your solar tax credit eligibility with your tax preparer to learn about when or how it could or should be applied to your tax liability.

Will I be able to pay off the balance of my system with my tax credit?

The federal solar tax credit can be worth up to 30% of the cost of your solar system, including panels, batteries and inverters). Since the credit covers just a part of the cost of your solar system, you won’t be able to pay off the balance of your system with the credit alone. However, if you are eligible for the tax credit, it may help to offset your system's overall cost.

What is a (PPA) escalator?

The PPA escalator (or Power Purchase Agreement escalator) is the agreed upon annual percent increase in your monthly payment. In other words, how much your monthly charge will increase each year.

[Look to see if customer has an escalator]

If 0% ....
Looking at your contract, it appears that you have a 0% escalator. That means you will not have this annual increase during the length of your contract.
If there’s an escalator...
Looking at your contract, it appears that you have a X% escalator. Your monthly charge will increase by that percentage on the anniversary of your first payment annually.

Why does the PPA escalator exist? What is it for?

The PPA escalator is often a standard part of a solar financing agreement. If applicable to your agreement, the PPA escalator is the known — or fixed — annual increase that’s set up when the contract is signed. This is a bit like when your utility rate increases over time or when the cost of groceries increases each year due to inflation.

I thought my solar system was supposed to cover my energy use, why am I still getting a bill from my utility?

In addition to your agreed-up monthly statement from EverBright for your solar system, you will continue to receive a utility bill from your local provider. There could be a few different reasons for this.
While your installer may have built your system with the intention of covering your typical energy use, the system may not always cover everything you need, causing you to need to tap into your utility for power. For instance...

Applies to all:

Your energy use varies throughout the year based on things like changing weather and seasons. For example, during the winter months when there are fewer hours of daylight or on cloudy days, your solar panels may not produce enough to cover your daily use. Also, if it’s unusually warm or cold, that also increases your energy needs. So, the weather can be a reason you have a utility bill that’s higher than you expected.
You may also increase your typical energy use without realizing it. This could be from something like adding an EV, working from home more or not being conservative with your energy use because you have solar panels. This change could mean you need to use more energy from your utility provider. Keep in mind, the same energy efficiency steps you may have taken before going solar are still needed today. This includes ensuring you have energy efficient lights and appliances, turning off lights and electronics when you’re not using them and raising your A/C or lowering your heater by a few degrees.
Most utilities have a customer charge, or required minimum bill, as well as related applicable taxes that you need to pay even if you don’t use electricity from your utility. You should talk to your utility about this charge, but this generally covers some of the costs of maintaining power lines or other services that you may need if you can’t fully power your home with solar.

For those without a battery:

As you may know, your solar system only produces energy when the sun is shining. When the system isn’t producing energy, such as at night, you’ll use energy from the grid. The bill from your utility provider will reflect charges for the energy you used at night and beyond what your panels can produce.

For those with a battery:

Your battery is meant to help store energy so you can use it when the sun isn’t shining. Often people don’t have the storage capacity to fully support their energy needs, which can require using energy from the grid.

I’m disappointed with my energy savings. Why am I not saving more money?

I’m sorry to hear that. There could be a few different reasons for this. Let me help you trouble shoot.

[If customer has solar for less than one year]:

It may be too soon to fully evaluate your savings. It’s typically recommended that newer solar users, like you, wait at least 12 months to do an initial savings analysis. Waiting until after your first year allows you to have a more comprehensive view of your annual usage (how much energy your household actually uses) — versus — your solar system’s annual production (how much energy your solar panels could produce to cover your needs). During this time, you can typically keep an eye on how much you’re using from the grid by visiting your utilities’ customer portal. Many utilities offer an energy dashboard showing your actual utility usage and related costs.

Applies to all:

Your energy use and possible savings can vary throughout the year based on things like changing weather and seasons. For example, during the winter months when there are fewer hours of daylight or on cloudy days, your solar panels may not produce enough to cover your daily use. Also, if it’s unusually warm or cold, that can also increase your energy needs, potentially increasing your overall energy needs and reducing what you expected to save.
You may also increase your typical energy use without realizing it, which can reduce your savings from solar. This could be from something like adding an EV, working from home more or not being conservative with your energy use because you have solar panels. This change could mean you need to use more costly energy from your utility provider. Keep in mind, the same energy efficiency steps you may have taken before going solar are still needed today. This includes ensuring you have energy efficient lights and appliances, turning off lights and electronics when you’re not using them and raising your A/C or lowering your heater by a few degrees.

For those without a battery:

As you may know, your solar system only produces energy when the sun is shining. You may not save as much as you expected because when the system isn’t producing energy, such as at night, you use energy from the grid and pay your utility provider for what isn’t covered by your solar system.

For those with a battery:

Your battery is meant to help store energy so you can use it when the sun isn’t shining. Often people don’t have the storage capacity to fully support their energy needs, which can require using energy from the grid.

If customer has “add ons” in agreement:

There’s another factor that may affect your overall savings when it comes to your solar investment. Keep in mind, if something like a roof repair or main panel upgrade was part of your financed solar installation, your monthly solar payment includes more than just solar-related expenses. These other improvements contribute to your overall costs and should be considered as you evaluate your household’s monthly savings.