Benefits of Solar Energy
Solar energy offers multiple perks. Let's look at a few of them.
- Better energy independence: Adding a solar battery storage system lets you have reliable energy during grid outages and storms.
- Lowered energy bills: You can dodge the premium cost of grid-tied power by generating some electricity right where you use it. Plus, many states offer net metering which can allow you to sell your unused energy back for credits on your bill.
- Reduced carbon footprint: Using solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Huntsville Homeowners?
Alabama homeowners who decide on solar could qualify for reimbursements, rebates, special financing and tax credits. Here are just a few of the area's incentive offerings.
Incentive Type: Personal Tax Deduction
Incentive Amount:
100%
Incentive Type: Property Tax Incentive
Website: revenue.alabama.govIncentive 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 Huntsville
The purchase price and efficiency of solar panels often depend on the solar company that installed them. Here are some crucial criteria to remember while shopping for a solar installer.
Licensing and Training
Alabama issues licenses to solar contractors similarly to electricians. They must have at least 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 credentials. Two of the most prestigious are the PV Installation Professional and Solar Heating Installer 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 Huntsville
The type of solar panels you purchase dictates how much power you can generate. Monocrystalline panels and high-quality and cost more but give you the best performance. Polycrystalline panels work with a tried-and-true mechanism and cost less, but produce less power. Thin-film panels aren't recommended for large residential installations, but they are ideal for small projects like converting RVs and sheds.
If you'd like to charge an electric car or use your solar power in inclement weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more efficient and user-friendly. Not all solar providers provide these additional features, so look for a company that installs them if it's crucial for you.
You can plan to spend about $17,450 on average for a five-kilowatt solar energy system in Huntsville. Check the table in this section to get an idea of what amount Huntsville solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,073 |
| Solar Polycrystalline | $837 |
| Thin-Film | $489 |
| Solar Battery | $687 |
| Solar Home EV Charger | $2,575 |
Financing Solar Energy in Huntsville
Solar providers use 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, power purchase agreements (PPAs) and solar leases. Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Like a home or car loan, you'll pay a set monthly rate with as little as $0 down. Solar leases allow you to pay a monthly rate to rent your panels, while a power purchase agreement lets you pay a fluctuating rate based on only the energy you use. We generally don't recommend these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be appropriate in particular circumstances. Ask each business you're vetting about the financing options it offers. A staff member can help you determine the optimal option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Huntsville.
You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. City and state officials and utility companies might also offer discounts, rebates, and specialized financing options that could save you 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 Huntsville
How much energy and money could I save per year by switching to solar?
How common is solar energy in Huntsville?
Will a solar PV system raise my Huntsville home price?
Could I still use solar power if I live in a rainy, wooded, or dark area?
How long will a typical solar system last?
What maintenance do my solar panels need, and how frequently do they need it?
How are a solar lease and PPA different?
If you choose a lease, you'll make fixed payments each month.
With both leases and PPAs, you don't own your panels and lose eligibility for most incentives. Further, you'll have to "buy out" or transfer the contract if you sell your home during the term.
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