Tax Resources for 2019 -- Fed 5695 Hawaii 342

As always, we are not your tax accountant nor your lawyer.    Please independently verify all information and interpretations.   Keep in mind that in 2020 the Fed tax credit has been reduced from 30% to 26%.    And in 2021 it goes down to 22%.    And 2022 ---- ZERO!

So if you are looking any type of solar upgrade or modernization, you should do it this year.

This is the Federal Tax form 5695 most people will use.   And the Instructions.

https://www.irs.gov/pub/irs-pdf/f5695.pdf 

This is the State Tax form N342.   And the Instructions.

https://files.hawaii.gov/tax/forms/2019/n342_i.pdf

Many home owners are looking to upgrade from "legacy" inverters and micro-inverters that will never be capable of integrating with a battery system, to the newer types and the one we like the best is the Enphase IQ7 series that were designed from the get-go to be an integrated part of a battery system.     We call this the IQ7 Upgrade.

Note -- They can function on their own as a "qualified solar electric property expenditure"

Of particular interest for homeowners interested in at some point installing a battery, the IRS has
clarified that Batteries Charged by Solar Electric, including all the devices necessary to connect them into the house's electrical system, will be considered a "Qualified solar electric property expenditure".

https://www.irs.gov/pub/irs-wd/201809003.pdf

https://law.justia.com/codes/us/2006/title26/subtitlea/chap1/subchapa/partiv/subparta/sec25d

https://law.justia.com/codes/us/2006/title26/subtitlea/chap1/subchapa/partiv/subparta/sec25d

This clarification letter from the IRS is from 2013, so it doesn't necessarily set precedent (or deny precedent) since so much has changed, but does at least give a little impression of the way the IRS thinks and may view things even though there has been a sea change in solar technology since then.

https://www.irs.gov/pub/irs-drop/n-13-70.pdf

Section 48 deals with Business Energy Investment Tax Credits

If you do business from your house, it may be possible to get additional benefits by allocating a portion of your solar electric (or even the solar hot water) to the business.     The portion allocated to business can then be depreciated, providing even more tax benefits.

Of course, this complicates the taxes and for many people it may not be worth the complication.

This IRS Notice clarifies the Business Tax Credits.

https://rsmus.com/what-we-do/services/tax/credits-and-incentives/investment-incentives/irs-issues-guidance-on-section-48-energy-investment-tax-credit.html

And for those with too much time on their hands, here is the Hawaii actual laws that describe the solar tax credits.

https://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0235/HRS_0235-0012_0005.htm

2020 Certificate of Good Standing

Tips for the "Network Bridge" Re-Pair, Re-Set, Lights

Steve here.

Over the years, various "Network Bridges" have been used.    The original ones from Enphase are
still working for some people, they are pretty big and a grayish color.    But the newer aftermarket bridges are much better!  

The purpose in our work is to bring internet connectivity to the EMU (aka Envoy).   This is done by sending internet over the house powerlines.    Technically this is an Ethernet over powerline bridge.



-------------------------------------------------------

We have used various types in the last few years, often a "Trendnet" device.   The Powerline 1300
AV2 is one of the best, fast and over long distances.    It used to be real expensive, but prices have come down to reasonable.

These devices are "paired" together.   Often this process is pretty automatic.  

The biggest problem you will find is that they somehow become un-paired.    Then you simply re-pair them using the button on the bottom.

If you are having trouble re-pairing the devices, you can move them to a close electrical receptacle, it makes it easier for them to find each other.

To re-pair, hold the button on the bottom for 3 seconds.  
Do the router side Bridge first, recommended, then go to the other bridge and hold that button for 3 seconds.

 They say this needs to be done within 2 minutes of each other. 

How do you know if it worked?    The Powerline LED will turn solid green on, If it is blinking Green that is also OK, it means that data is being transmitted. 

Easy Peasy, right?

Sometimes bridges can just get into a real funk, and nothing seems to work.  

In this case, a completely system reset (think of it as a re-boot), is needed.   Because the device need to be plugged in to electric while doing the reset, it may be hard to get to the bottom of the Bridge while it is plugged in.   Make it happen! 
Use a mirror and paperclip if need be!    It's a little recessed button on the bottom














Note: if you have super old wiring in your house, without a ground wire, these probably won't work, they require 3 wires, Hot, Nuetral, Ground in 120V.


We are not experts in internet security, we are just happy when it works!   Of course, there are risks with any internet use.   Just be aware that many of these newer devices can be customized to increase security.     The owner of the internet service is responsible for any security measures and risks, not us. 

BBB Accredited Business

Solar Electric And the Brave New World of Battery Systems

2019 is a great year to do a Solar Electric system, also known as Photovoltaics, or "whole house".

• A lot of companies do just PV, and not hot water.    
• It may seem surprising, but hot water systems are actually more complicated to do and take more skills and tools.    
• I say this to clarify that "whole house" solar does NOT mean that you should have just the PV Electric.   
• In many cases, it makes more financial sense to ALSO have the Solar Hot Water, which can account for about 40% of your bill (mostly depending on if you are a heavy aircon user or not.)

In this brave new world of solar, at least in the Hawaii grids, you can no longer get your bill to near zero unless you are using batteries to supply your nighttime loads.    It is just the way that HECO and the PUC have set up the systems.  

You charge your batteries in the daytime (as well as covering your own electrical demand).   HECO has basically 4 programs available, but the basic data collection will be the same for all.

If you have  the old style dial meter, click HERE, to see how to read the kWH reading on the meter.

If you have the newer NEM style meter, click HERE.

Finally, in order to size your system and batteries, the following information is important IF you want to make the best decisions.

It would be good to collect this data on three normal days (normal daytime and nighttime use), not if you have house guests, etc.

 

Solar Tax Credit 2018

Here is the links for 2018 Solar tax credit.

Hawaii State Solar Tax Credit  Form N-342

Fed  Solar Tax Credit    Form 5695

Microinverters: Monitoring / Communications Are Essential - 3R Box/Bridge

Let's talk about monitoring your Microinverter Based System.   Monitoring is very important

I'll make this is simple as I can.   

The Envoy/EMU (the oval box) needs to talk to:

1) The internet
2) The microinverters on the roof

A direct connection plug into the internet is common, so it is usually placed in the house in the computer area.   But this has a downside, there are large amounts of electrical noise within the house, esp. by the computer area, and that makes it hard or impossible to "talk" to the microinverters on the roofs and get their report on how they are doing. 

My solution/invention is to get the Envoy/EMU out of the house completely, and then to create a network/internet connection using a special device.

Email to schedule, or call with questions or to discuss 671-5566

solsen@pacific-energy.com 

What is the issueif the communications to the roof are bad? With poor communications to the rooftop equipment, you cannot tell what is functioning and what is broke or "breaking".  Microinverters often fail little by little, so you may be losing 50% of production, LOSING MONEY and don't even know it.

The company, Enphase, will no longer issue the Return Material Authorization RMA so you can't get parts replaced for free under the 15 year warranty for materials UNLESS you have 3 or more Bars of Communications out of 5.

 The 3R Box / Bridge is the solution.

For 95% of people it will cost just $350 plus tax.

Only 10% of our customers now have "3 of 5 bars" of communication or better, needed to get warranty parts approved.

Almost for sure, you have this problem and we have the solution.

We were cautious to roll out this invention because we weren't sure whether it would work in a wide varierty of situations.

It worked at my house, and now it has worked at 17 people houses. So we are pretty confident. But we can't guarantee it will work at your house, but if it doesn't we don't take no for an answer, there are also some noise reducing ferrite torroids that can be applied. We have not had to resort to this yet, but there would be extra cost (like $100 for the torroids)

Olsen's Invention the "3R Box /Bridge" SOLVES the communication problems that prevent people from getting the maximum output from their PV Electric Solar.

1) If you want to order this Inventive Fix, email us here solsen@pacific-energy.com

Electric On Your Solar Water Not Working? Easy Steps to Confirm

There are 2 separate heating systems on a solar hot water system, and they have nothing in common except the water.   They don’t even “know” that the other system exists.

1)      Solar Heating

2)      Electric Backup Heating

You can easily tell if the solar portion is working, using this

http://oahusolar.blogspot.com/2016/03/how-to-tell-if-my-solar-hot-water.html

For now we focus on the electric backup heating, because having no solar hot water costs you a few dollars a day, but having NO HOT WATER can be a major annoyance.

The disconnect is only occasionally a problem, unless of course, someone pulled out the disconnect to work on the system, and then failed to put the spade connector back in, or put it in upside down. 

If the timer spins (keeps the correct time), then you know that the timer is getting power (and you also know that the disconnect is fine)

If the timer does not spin, then the first thing to check is the breaker.    Breakers can be tricky, they can look not tripped but really be tripped.   So you push them firmly off, and then firmly back on.   Set the timer for the correct time.

Read this to get to know your timer

http://oahusolar.blogspot.com/2012/08/getting-to-know-your-heater-timer-lgb.html

If the timer spins, and the outside little handle is in the on position, then it should be sending power to the “High Limit Reset” Switch which is on top of the Thermostat (actually part of it, it’s an assembly).     If the High Limit Reset safety switch was activated (by really hot temperature like 160F or 170F) then the power stops right there, and never gets to the thermostat.        It’s a simple “reset” just push the little round Burgundy colored button, and if you feel a very slight click, pay attention!, then it was activated, and now it is reset….your problem is likely solved.

The second red link on this page explains more the on High Limit Reset

http://oahusolar.blogspot.com/p/hot-water-maintenance.html

How can you tell if the element is actually heating the water?      We call this the “ear test”.    

1)      The thermostat setting must be above the temperature in the tank.

2)      If the tank is fairly warm (say from the Sun), but you want to test the T-stat, you can turn it up to a high temperature by turning clockwise with a small flat bladed screwdriver.   As the setting exceeds the water temperature, you should hear a little click, indicating that it is now sending power to the heating element.

3)      Put your ear right on the tank, if you hear a faint humming, that is the element heating the water.   One caveat though….in rare occasions, you will hear some humming, but the Element will actually be mostly broke, and it really won’t make hot water.     If you hear the humming, but never get hot water, you have a bad Element, OR the below, a bad Mixing Valve.

It can be a real bear to change an element.    It needs special tools, and if you strip it, the whole tank is shot.   Any leakage or rust in this whole area can be a real electrocution or fire hazard.     Just because you have a breaker (sitting in your breaker panel for 30 years, never moving) does not mean that it will work when needed!    

But let’s finish on the Thermostat.    If you turn the T-stat all the way up, and it never clicks indicating sending power to the element (and everything upstream is OK, breaker, disconnect, time, high limit reset), then the T-stat is likely bad.    If you have an electrical tester, and the knowledge to use it safety, you can read the voltage into the T-stat, and the voltage to the Element, both should be 240V AC. 

One thing that will confound even the best troubleshooting in the world, is the Mixing Valve.     If the Mixing Valve (MX) has gone bad and gets occasionally stuck, nothing else that you do or change will make the system work well and consistently.     MX is usually reliable, and a bit pricey to change, it’s $315 labor and material to change, unless repiping is needed then it is more.    So when nothing else makes sense, and especially if system is over 7 years old, then it’s time to bite the bullet and replace the MX.    The MX is usually a red colored cap in the top center of tank (sometimes blue or green).