Bruce Gould, who installed solar panels on his Westover Hills home last year, has saved about $1,200 in electricity costs. (Photo by Jay Paul)
“It’s just the right thing to do,” Bruce Gould says about installing solar panels on the roof of his Westover Hills home last year. He estimates his family generates about 70% of its electricity needs via solar energy. Aside from being environmentally conscious, solar power saved the Goulds about $1,200 a year in electricity costs.
Gould and his wife, Kate McClory, have invested substantial money and time in their green living principles. A Prius is parked in their driveway, and on bright and windy days, clothes flutter on a clothesline in their backyard, dubbed the “solar dryer” by Gould.
“You can’t be 100%, but we can try” to live sustainably, he adds. “To me, if we all just do even these smaller things, it will all add up.”
The cost of installing solar panels varies and depends on factors such as the number of panels required. Though Gould did not want to share the cost of installing his system, his solar panels represent a long-term investment in the family’s green principles. A 30% federal tax incentive, the Residential Renewable Energy Tax Credit, helped them pay for the system installed by Sigora Solar. The credit has since decreased to 26% for systems first put into service after Dec. 31, 2019, and is subject to further decreases.
Another reason for the savings is that Dominion Energy applies a credit for unused electricity produced by the panels to subsequent billing cycles. The family’s electric bill for April 2019 was $7.98 — the cost of Dominion’s service distribution and Richmond’s utility tax — a decrease from $100 in April 2018.
Gould and his wife also convinced two neighbors in Westover Hills, and a friend in Regency Square, to make the switch to solar.
Historically, Virginia has been slow to adopt renewable energy. Currently, 7% of the state’s electricity is produced from renewable sources, with solar accounting for 1%, according to U.S. Energy Information Administration (EIA) 2018 data. But that is changing due to a multiyear, global trend of dropping renewable energy costs, which are now lower than the cost of electricity produced at gas-fired, coal and oil power plants.
Last year, renewables supplied more U.S. energy needs than coal for the first time since before 1885, a May EIA report says, with coal consumption decreasing by 15% and renewable energy consumption growing by 1%.
Groundbreaking Climate Legislation
Gould and other solar converts could soon have much more company due to the Virginia Clean Economy Act (VCEA) — groundbreaking climate legislation that has quickly made Virginia one of the most progressive states on green energy.
Remarkably, “Virginia became the outright regional leader for solar and battery storage commitments, within the span of one legislative session,” says Maggie Clark, a policy expert for the Solar Energy Industries Association.
The VCEA has targeted a 100% clean electrical grid by 2050 and calls on major investments in clean energy infrastructure by the state’s two largest utilities, Dominion Power and Appalachian Power.
And in the face of the pandemic-related economic downturn, the VCEA could boost solar and other renewable industries, one of the fastest growing economic sectors before the pandemic, says state Sen. Jennifer McClellan, a chief patron of the legislation.
“The VCEA is projected to create 13,000 jobs a year,” she says. “We need to start those investments today to put Virginians to work. What’s more, many of those investments will go to helping working families and local governments reduce their energy burden through efficiency investments and cost-saving resources, like rooftop solar.”
One way the VCEA could spur economic recovery is that it carves out significant space in Virginia’s renewable energy market for private companies such as Sigora Solar, whose technicians installed Gould’s system. Dominion and Appalachian Power must maintain a threshold of 35% of capacity purchased from independent renewable energy sources within the state.
The VCEA further incentivizes the adoption of solar and other renewables with cost-saving measures. The cap on net metering, which allows the Goulds and other customers to be paid for excess energy generated from rooftop solar panels, will be raised from 1% to 6% of net load. When solar panels produce more electricity a home can use, that energy is sent to the grid in exchange for credits.
Power purchase agreements — which allow customers to lease solar energy systems -— also have increased energy caps. These contracts ease the burden of investment in solar infrastructure for schools and nonprofits, which are not eligible for the 26% federal energy tax credit.
McClellan says that during the next General Assembly session, she will introduce legislation that raises caps further and expands eligibility for power purchase agreements, along with other measures. Gould and other advocates, who say renewable energy adoption is integral to stalling climate change, provide a supportive base to champion further green gains in the General Assembly.
“It’s our responsibility to provide a place for our daughters and grandchildren to live one day,” Gould says. “Installing our solar panels was just a small part of doing what we can.”
All About Solar
How much does it cost?
On average, a residential solar system costs about $18,000 before tax credits and other incentives, according to 2018 data from the Solar Energy Industries Association. Solar systems put into service this year are eligible for a 26% tax credit, which decreases to 22% in 2022, before expiring at the end of the year.
Buy or lease?
For homeowners who don’t want to buy systems outright, the U.S. Office of Energy Efficiency and Renewable Energy (EERE) website highlights leasing options, which also reduce energy costs. Leasing expenses cannot be offset by tax credits.
Is solar a good option for my home?
Before installing a system, homeowners should assess the amount of solar energy that could potentially be generated at their address. The EERE office provides a list of mapping services to determine potential energy generation. The amount of power generated depends on system size and the amount of sunlight that reaches panels.
Keep in mind:
- If a house will need a new roof in the next several years, it’s ideal to replace the roof before installing solar panels.
- Before shopping for a contractor, homeowners should review past energy bills to determine yearly energy needs.
- Homeowners should check that installers are insured and that they are certified by the North American Board of Certified Energy Practitioners.
