Let’s address a question frequently asked by prospective customers: “How do I make money with solar?”

Generally, residential and commercial solar’s economic proposition is saving money. There are exceptions to this rule, but our customer’s solar electric systems are enabling them to save real money on electric bills from day one – often for little to no money upfront. That’s precisely what REC Solar-installed systems are doing for more than 9,000 businesses and homes across the country. In fact, these solar systems will offset more than $20 million in electricity costs every year.

As a result, solar is particularly well-suited for those with high electricity bills. Many states with relatively high electricity costs – including California, Hawaii, New York, New Jersey, and Massachusetts – are also prominent solar markets, with thousands of new solar systems installed each year.

Let’s get back to our original question – how can REC Solar customers save money and generate revenue with solar? First, while it’s theoretically possible for businesses and homeowners with solar to produce more electricity than they use and be compensated for the excess generation, in practice it’s rarely a good deal. In most states, utilities pay only token amounts for the extra electricity production, and producing that much electricity often requires a larger, slightly more expensive solar system. The benefit almost never justifies the cost.

Yet there is a way in which many of our customers make money with solar – referrals. Refer a friend or neighbor to REC Solar, and if they select us as their solar provider, you receive payment starting at $500.00. Costco members or others may be eligible for more.

This is a tangible opportunity. With roughly 50% of new customers coming from referrals, we pay tens of thousands of dollars to our customers every month. Some REC Solar customers have made dozens of successful referrals and been compensated accordingly. After all, these referral payments are limitless. That’s real money.

Of course, a successful referral program relies on satisfied customers, professional workmanship, quality materials, and after-sales service levels which are second to none. That’s our bag. After all, our success depends on satisfied customers telling friends, neighbors, and colleagues about solar’s many benefits.

Let’s save and make money with solar. For more information about REC Solar’s referral program, please visit referrecsolar.com.

Tax season is a good time to review the benefits of going solar.

It’s tax time. Time to meet with your tax preparer and tally up with the man. A good time also to review one of the key benefits of residential and commercial solar – the federal Investment Tax Credit (ITC) – which allows solar owners to take a credit against their federal tax liability equal to 30% of the qualifying costs of the solar electric system.

A few important points:

The ITC must be taken in the tax year in which the solar system was placed in service. If your solar electric system was placed in service anytime between January 1^st to December 31^st, 2012, you should take the tax credit in the 2012 tax year. If you signed a purchase contract in 2012 but the system wasn’t built until March 2013, you should take the tax credit in the 2013 tax year.

The ITC is not refundable. If your 30% tax credit equals $6,000.00, yet your federal tax liability for the year is $5,000.00 – you won’t receive $1,000.00 from Uncle Sam. Instead, you’ll apply this remainder of the credit to next year’s taxes.

The ITC is only provided to solar system owners. If you’re financing or leasing your solar system (from Sunrun or another company) you aren’t eligible to take the ITC. In these cases, the third-party system owner utilizes the ITC and incorporates the benefit into your solar system leasing or financing arrangement.

In most cases (but not all) any state or utility incentives should be subtracted from the system cost before calculating the tax credit. While commercial solar owners and homeowners in certain states may not be compelled to subtract state or utility incentives from the system cost, there’s no free lunch. In such cases, incentives are generally treated as income and taxed accordingly. The calculation of the tax credit vis-à-vis other financial incentives is an issue which we always recommend solar owners speak to their tax advisor about.

For commercial solar owners, there may be additional federal tax benefits. Specifically, commercial solar owners can benefit from 50% ‘bonus’ depreciation, which allows for the deduction of 50% of the depreciable basis of a solar electric system in the first year of operation (rather than over a typical five-year MACRS schedule). This benefit is available for commercial solar electric systems placed in service on or before December 31, 2013.

While REC Solar certifies that our solar electric systems meet the definition of qualifying solar property, we can’t guarantee a particular tax result or outcome. The information provided above is for informational purposes only, and we strongly encourage current or prospective solar owners to consult their tax advisor to determine how the ITC or other tax allowances may benefit you, given the specific facts and circumstances.

REC Solar has now built more than 9,000 solar electric systems across the U.S. totaling 143 megawatts. Last year alone our company built more than 50 megawatts of solar in 15 states.

These are impressive numbers, but might not mean much to those unfamiliar with solar’s terminology. What is a megawatt, anyway?

Let’s start at the beginning. All solar panels have a “nameplate rating,” which describes the panel’s optimal output in watts. If a first-tier monocrystalline solar panel has a nameplate rating of 260 watts, under perfect conditions this panel would produce electricity sufficient to power almost six 45-watt compact fluorescent light bulbs.

Of course, solar panels rarely operate under perfect conditions. That’s why the many different solar panels on the market are tested by the California Energy Commission to account for dust, wiring losses and weather, among other factors. Looking at the Commission’s website, we see that a 260-watt solar panel can actually be expected under less-than-perfect conditions to produce around 234 watts.

Each solar system is individually-designed and sized to meet the specific electricity demands of the customer, but most residential solar systems are around 6,000 watts, or six kilowatts. Thus, the average residential solar system consists of 25-30 solar modules. Such systems often fit readily on a standard residential roof, but can also be mounted on the ground. Examples of six kilowatt systems follow:

A 6.6kW solar system in Santa Maria, Calif.

A 6kW solar system in Scottsdale, Ariz.

A 6kW solar system in San Luis Obispo, Calif.

When we make reference to a megawatt (1,000,000 watts) we’re talking about the functional equivalent of 150- 200 residential systems, or a lesser number of larger commercial solar systems. Indeed, REC Solar has built systems up to and over one megawatt for large multi-national businesses – including Costco, Ikea, Nestle and DuPont – and agencies including the Departments of Veteran Affairs and Defense, which use solar primarily to control energy costs. A one megawatt system typically uses around 4,000 individual solar panels and if mounted on the ground (not many facilities can host such a sizable system on the roof) utilizes approximately eight acres. The following are two examples of REC Solar-constructed one megawatt systems:

A 1.16 MW solar installation at Castle Rock Vineyards.

A 1.2 MW solar installation at Kapa’a, Kaua’i, Hawaii.

When we say we’ve built more than 50 megawatts in 2012, in truth that number consists of many residential solar systems, and a smaller number of mid-sized, large, and very large commercial systems.

With the price of solar continuing to drop, and electricity prices increasing in many states, we look forward to an even more successful 2013.