Solar APP+ software: just the thing to reduce solar installation costs

By Patrice ‘Pete’ Parsons | TXSES Executive Director

It’s June in Texas, another day of unrelenting headlines about excessive heat warnings and triple-digit temperatures and ERCOT asking us to conserve electricity. It’s not surprising that more and more Texans are looking to solar and storage to ensure continued electric service during grid emergencies.

Texas’ solar industry is in overdrive, and it’s not just because of the extreme weather.

With hardware costs down nearly 50 percent over the past decade in the residential and small commercial markets, coupled with the Inflation Reduction Act’s 30 percent tax credit for residential systems installed through 2034, the Texas solar industry can realistically plan for growth and hire more people to respond to the demand. Demand is also on the rise for batteries as homeowners combine solar with storage for reliable backup power. Storage is also eligible for the 30 percent tax credit.

But falling hardware prices and tax credits aren’t the whole picture.

Currently representing about 8 percent, soft costs like permitting, financing and installation make up a growing share of the total solar system’s costs. There is no standardized permitting process. Authorities Having Jurisdiction (AHJ) have their own set of rules and processes for solar that can take anywhere from two weeks to two months. Mistakes in the paperwork and it’s a do-over. This doesn’t include the interconnection process which can take up to six months in certain parts of the state. Ultimately, speed

In 2021 and in response to the overwhelming volume of residential solar permitting applications nationwide, the National Renewable Energy Laboratory (NREL), along with code officials, AHJs and the solar industry developed a standardized plan review software to run compliance checks and speed up building permit approvals for eligible solar rooftop systems. Known as Solar APP+ (Solar Automated Permit Processing), this free, innovative software is a lifesaver for permitting departments. Here are some key facets of the Solar APP+ software:

  • It integrates with existing government software.
  • It automates plan review, permit approval, and project tracking.
  • It standardizes up to 90% of standard system plans.
  • It provides an inspection checklist and final sign-off after installation.

According to a 2022 NREL report on Solar APP+ performance, communities that have adopted SolarAPP+ have saved more than 12,800 hours in plan review time, and projects are installed about two weeks faster, given that permits are issued instantly for code-compliant systems. This groundbreaking software has the potential to speed up installations and reduce costs while addressing climate change.

Currently, 15 AHJs have publicly launched SolarAPP+, and 16 more are piloting the platform including AHJs in Tool, Waco and Houston, Texas.

With the relentless growth of solar in the state, we want to help more Texas municipalities adopt Solar APP+, and thanks to our friends at the State Energy Conservation Office (SECO), we’ll be able to do just that.

Once approved by the Department of Energy (DOE), SECO will offer a $25K funding opportunity for each qualified municipality to adopt Solar APP+.  In addition to SECO funding, NREL will support the municipalities with free technical assistance and hardware upgrades ­– this means NO cost to municipalities! It’s our intention to help a minimum of seven additional municipalities adopt Solar APP+ beginning October 1.

If you’re interested in helping your municipality adopt Solar APP+, email me at pparsons@txses.org

How to Avoid Solar Scams!

Touted as “the single biggest climate investment in US history,” President Biden signed the historic $739 billion Inflation Reduction Act (IRA) on August 16, signaling an unprecedented level of federal support toward our transition to a clean energy economy.

One of the more celebrated provisions in the IRA is the 10-year extension of the Investment Tax Credit (ITC) which applies to individuals like you and me. Instrumental in launching the solar industry in 2006, the ITC’s 10-year extension at 30% of the cost of the installed equipment will step down to 26% in 2033 and 22% in 2034.

As more Texans consider going solar, the opportunity for scams increases.

Our friends at Austin Energy have details on their website to avoid being scammed. Check it out!!

Passed, signed and delivered: the Inflation Reduction Act of 2022 becomes reality!

Touted as “the single biggest climate investment in US history,” President Biden signed the historic $739 billion Inflation Reduction Act (IRA) on August 16, an unprecedented level of federal support toward our transition to a clean energy economy.

Credit: whitehouse.gov

Referred to as “Energy Security and Climate Change,” investments aimed at reducing CO2 emissions below 2005 levels by 40% by 2030, account for $369 billion or about 50% of the bill’s overall funding.

One of the more celebrated provisions in the IRA is the 10-year extension of the Investment Tax Credit (ITC) which applies to individuals like you and me. Instrumental in launching the solar industry, the ITC’s 10-year extension at 30% of the cost of the installed equipment will step down to 26% in 2033 and 22% in 2034. Here’s what the tax credit looks like before and after the 10-year extension:

Pre-IRA ITC: (assume $18K system and $1K utility rebate)
0.26 * ($18,000 – $1,000) = $4,420 tax credit

IRA ITC: 0.30* ($18,000 – $1,000) = $5,100 tax credit

Source: SEIA

The 30% credit also applies to energy storage whether it is co-located or installed as a standalone. This enables the retrofit of a battery to a solar array while taking advantage of the credit.

Tax credits will fund the purchase of heat pumps, rooftop solar systems, electric HVAC systems and electric water heaters. Transportation tax credits include $4,000 to eligible low-to-moderate income individuals to buy used clean energy vehicles, or $7,500 for new clean energy vehicles. Energy efficiency in new affordable housing projects will receive $1 billion. Consumer home rebate programs for low-income individuals will offer up to $9 billion for appliance electrification and energy efficiency retrofits.

Another notable element in the IRA is the clean manufacturing program. Designed to last a decade, this facet will enable companies to scale up and increase production volume and efficiency, supporting development across the clean energy supply chain.

Known as the 45X Advanced Manufacturing Production Tax Credit (PTC), named after the section of the tax code it would alter, this production credit would direct roughly $30 billion over the next 10 years to support the production of components of solar panels, wind turbines, inverters and batteries for electric vehicles and the power grid, as well as promote mining and refining the critical minerals that go into these products. The other half of the $60 billion clean energy manufacturing money consists of $10 billion in new investment tax credits and $20 billion in loans for clean vehicle manufacturing.

In addition:

  • National laboratories: $2 billion for clean energy research;
  • The Defense Production Act: $500 million for affected companies to manufacture heat pumps and process needed mineral materials;
  • $30 billion in targeted grant and loan programs for state energy offices and electric utilities to incentivize the transition away from fossil fuels;
  • Advanced Industrial Facilities Deployment Program with $6 billion will cut CO2 output in chemical, steel and cement manufacturing facilities;
  • $9 billion for the federal government to buy clean energy technologies, $3 million of which will go USPS for ZEVs (zero emission vehicles);
  • Clean Energy Technology Accelerator program will fund $27 billion for emission-reduction technologies in targeted low-income communities.

To ensure that the act targets historically disadvantaged communities and avoids the pitfalls of environmental racism, bill authors coordinated with environmental justice leadership, shoring up $60 billion for programs including $3 billion in environmental and climate justice block grants; $3 billion in neighborhood access and equity grants; $3 billion in grants to reduce air pollution at ports; $1 billion towards the procurement of no-emission freight and public transportation; and various bonuses and set-asides within tax credits that incentivize their use in low-income communities.