Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Better energy independence: Photovoltaic solar panel systems with battery backups and storage systems operate through power outages and emergencies, and you won't have to rely on the power grid for your safety and comfort.
- Lowered energy bills: You can avoid the expensive cost of grid-tied power by creating some electricity right where you use it. Plus, many states provide net metering which can allow you to sell your unused energy back for credits on your bill.
- Reduced carbon footprint: Using clean solar power lowers your dependence on conventional, less environmentally-friendly sources.
What Solar Incentives Are Available to Phenix City Homeowners?
Alabama's public agencies and power companies offer a range of solar incentives to help lower your solar system costs. Here is a breakdown of available solar programs where you live.
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 Phenix City
The more informed your company research is, the better your photovoltaic system will ultimately function. Consider all of these factors in your contractor search.
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 accreditations. Two of the most prestigious are the Solar Heating Installer and PV Installation Professional certificates, granted 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 Phenix City
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 provide a lower price point but produce less power. 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.
Additional system add-ons, such as electric vehicle (EV) chargers and battery storage, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar contractor provides these add-ons, 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 Phenix City. Use the table in this section to get an idea of the amount Phenix City solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $977 |
| Solar Polycrystalline | $762 |
| Thin-Film | $446 |
| Solar Battery | $625 |
| Solar Home EV Charger | $2,345 |
Financing Solar Energy in Phenix City
Choosing the optimal financing plan will impact your overall solar system cost and potential savings. Common payment options include cash payments, power purchase agreements, leases, and loans. Most solar experts recommend a cash payment or using a solar loan. Cash payments demand 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 auto loan, you'll pay a set monthly rate with potentially $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) allows you to pay a monthly rate based only on the energy you use, akin to an electric bill. We usually don’t recommend these two choices because you won't own the system and are disqualified from using solar incentives. We recommend working with a company that offers multiple financing options. Talk to each representative about what's available, and obtain more than one estimate for the best odds of staying within your budget.
The table below lists the average payback periods for different capacities of solar systems in Phenix City.
You are eligible for a 26% federal solar tax credit for new solar power systems until the year 2032. Local and state governments and utility companies might also offer rebates, discounts, 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 Phenix City
How much energy and money could I save per year by switching to solar?
Is solar energy readily available in Phenix City?
Should I anticipate a boost in my property value after switching to solar energy?
What care do my solar panels need, and how often do they need it?
What's the average solar system size in Phenix City?
What is the average payback period for Phenix City solar panels?
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from installer, specialty lenders, local banks and the government. You'll need to pass a credit check to qualify for most of them. While the upfront costs are greater, and you'll be responsible for maintenance, you'll also have total ownership and can apply for many more incentives.
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