Benefits of Solar Energy
Solar energy offers several advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Lowered energy bills: You can skip the premium cost of grid-tied power by producing some electricity at home. Plus, many states provide net metering which can allow you to sell your unused energy back to credit part of your bill.
- Better energy independence: Solar panel systems can keep your home powered through emergencies and blackouts, giving you additional security. You can use your solar energy anytime with optional battery storage.
What Solar Incentives Are Available to Hoover Homeowners?
Governments and power companies often reward homeowners for embracing solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Personal Tax Deduction
Incentive Amount:
100%
Incentive Type: Property Tax Incentive
Website: revenue.alabama.govIncentive Type: Loan Program
Website: alabamapower.comIncentive Amount:
Varies, up to 100% of project cost for qualifying customers
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Hoover
The cost and effectiveness of solar panels often depend on which company installed them. Here are some key items to keep in mind while shopping for a solar specialist.
Licensing and Training
Alabama licenses solar contractors similarly to other electrical professionals. They must have a minimum of 4 years of relevant experience and submit an application with the state's Electrical Contractors Board. You should also visit a company's website to learn about its private certifications. Two of the most prestigious are the Solar Heating Installer and PV Installation Professional certificates, awarded by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Hoover
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels produce less power, but start at a more budget-friendly price point. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
You can also add electric car (EV) chargers and battery backup systems. These will increase your total installation cost, but they can maximize your solar system's performance. Not all solar providers include these additional features, so look for a provider that sells them if it's essential for you.
If you're a resident of Hoover and are considering getting a five-kilowatt solar energy system, you could expect to pay about $17,450 for materials and labor. Find more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,079 |
| Solar Polycrystalline | $842 |
| Thin-Film | $492 |
| Solar Battery | $691 |
| Solar Home EV Charger | $2,590 |
Financing Solar Energy in Hoover
Solar providers offer multiple different financing options to increase your savings and lower your costs. Though some providers offer unique payment plans, the most common are cash payments, solar loans, solar leases and power purchase agreements (PPAs). Though it involves a large up-front payment, cash is the most cost-effective choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the next best option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for valuable solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a PPA lets you pay a variable rate based on only the energy you use. We generally advise against these options since you won't own your system and are disqualified from solar incentives, but they might be appropriate in certain circumstances. Look for providers that offer several payment plans to find the right fit for your budget.
The table below lists the average payback periods for different capacities of solar systems in Hoover.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, utilities and local governments may have their own financing plans and rebates that could reduce your total cost even more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 1.7 years |
| 2 kW | 3.5 years |
| 5 kW | 8.7 years |
| 10 kW | 17.5 years |
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Frequently Asked Questions About Solar in Hoover
How much money could I save by going solar in Hoover?
How widespread is solar energy in Hoover?
Will solar energy systems boost my Hoover home price?
Could I still use solar power if I live in a dark, rainy, or wooded area?
What can I do to calculate my home's solar viability?
What's a Hoover solar panel's average lifespan?
How can I maximize my solar panels' performance?
- optimize the panels' position with your solar installer
- regularly clean your solar panels
- upgrade to a more efficient inverter trim or cut down trees in the way of your panels
- use energy-efficient appliances
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from the government, installer, local banks and specialty lenders. You'll need to pass a credit check to qualify for most of them. While the upfront costs are more expensive, and you'll be responsible for upkeep, you'll also have full ownership rights and can apply for many more incentives.
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