Benefits of Solar Energy
Solar energy provides multiple advantages. Let's look at a few of them.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Better energy independence: Solar energy can keep your home powered through blackouts and emergencies, giving you additional security. You can use your solar energy anytime with optional battery backup.
- Reduced energy costs: Sourcing some or all of your own power will spend less on electricity long-term. Plus, some states provide net metering programs that enable you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
What Solar Incentives Are Available to Montgomery Homeowners?
Alabama homeowners who choose solar could qualify for special financing, tax credits, rebates and reimbursements. 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: Loan Program
Website: alabamapower.comIncentive Amount:
Varies, up to 100% of project cost for qualifying customers
Incentive Type: Rebate Program
Website: dixie.coopIncentive Amount:
Contact member services representative
Incentive Type: Rebate Program
Website: caec.coopIncentive Amount:
Water Heater: $235 - $375
Dual Fuel or Mini-Split Heat pumps: $300- $350/ton
Converting furnace to heat pump in new manufactured homes: $400-$700
Converting furnace to heat pump in existing manufactured homes: $400/ton
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 Montgomery
Choosing a company is the first step toward an effective and cost-efficient solar system. Here are some crucial criteria to bear in mind while shopping for a solar provider.
Licensing and Training
Alabama licenses solar contractors with similar requirements to electricians. They must have at least 4 years of field experience and submit an application with the state's Electrical Contractors Board. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar industry's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Montgomery
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power 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.
If you need to charge an electric car or use your solar power in cloudy weather, you can pay extra for accessories. By choosing the right components, you can make your system more effective and user-friendly. Not all solar companies provide these optional components, 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 Montgomery. Check the table in this section to get an idea of what amount Montgomery solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,084 |
Solar Polycrystalline | $845 |
Thin-Film | $494 |
Solar Battery | $693 |
Solar Home EV Charger | $2,601 |
Financing Solar Energy in Montgomery
Solar providers offer multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are cash payments, solar leases, solar loans and power purchase agreements (PPAs). Though it requires 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 second most effective 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 rent your panels for a fixed monthly rate, while PPAs let you pay just for the energy you use, similar to an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Look for companies that offer several payment plans to find the right fit for your financial needs.
The table below lists the average payback periods for different capacities of solar systems in Montgomery.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Further incentives may be available through local governments, usually in the form of rebates and special financing programs.
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 Montgomery
How much money could I save by going solar in Montgomery?
Is solar energy readily available in Montgomery?
Should I expect a property value increase after adopting solar power?
Could I still use solar power if I live in a rainy, dark, or wooded area?
How long does a common solar system last?
Is solar panel installation a fast job?
How are a solar lease and PPA different?
You don't own the panels with either option, though you can choose to opt out of the contract for a fee.
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