Benefits of Solar Energy
Solar energy comes with multiple perks. Here are some highlights.
- Better energy independence: Adding a battery storage system lets you have trustworthy energy during grid outages and storms.
- Lower energy bills: Sourcing some or all of your own power will spend less on electricity long-term. Plus, some states provide net metering programs that allow you to sell your unused energy back to the grid, generating extra credits toward your energy bill.
- Reduced carbon footprint: Using clean solar power lowers your dependence on conventional, less environmentally-friendly sources.
What Solar Incentives Are Available to Champaign City Homeowners?
Governments and utilities often incentivize homeowners for switching to solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies
Incentive Type: Solar Renewable Energy Credit Program
Website: icc.illinois.govIncentive Amount:
Negotiated with procurement administrators
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 Champaign City
The price and efficiency of solar panels often depend on which company mounted them. Make your choice based on the following key factors.
Licensing and Training
In Illinois, the state Commerce Commission regulates distributed generation energy contractors, including solar installers. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar sector's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Champaign City
Your photovoltaic panels' model will impact how much energy you can generate. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
If you want to charge an electric car or use your solar power in cloudy weather, you can pay extra for accessories. By selecting the right components, you can make your system more effective and user-friendly. Not all solar contractors provide these add-ons, so look for a provider that installs them if it's crucial for you.
If you're a resident of Champaign City and want a five-kilowatt solar energy system, you could plan to spend about $18,800 for materials and labor. Find more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,149 |
| Solar Polycrystalline | $896 |
| Thin-Film | $524 |
| Solar Battery | $736 |
| Solar Home EV Charger | $2,758 |
Financing Solar Energy in Champaign City
Choosing the optimal financing option will impact your overall solar system cost and expected savings. Common payment options include loans, power purchase agreements, cash payments, and leases. 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 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 cost-saving 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 will not have ownership of your system and are disqualified from solar incentives, but they might be suitable in particular circumstances. Ask each installer you're considering 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 Champaign City.
You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. Municipal and state governments and utility companies might also offer discounts, rebates, and dedicated financing plans that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.8 years |
| 2 kW | 5.5 years |
| 5 kW | 13.8 years |
| 10 kW | 27.6 years |
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Frequently Asked Questions About Solar in Champaign City
How much energy and money could I save per year by switching to solar?
How prevalent is solar energy in Champaign City?
Should I anticipate a property value increase after installing solar panels?
Could I still use solar power if I live in a rainy, wooded, or dark area?
What can I do to assess my home's solar viability?
What's the average solar system size in Champaign City?
What's the difference between a PPA and a solar lease?
You don't own the panels with either option, though you can choose to "buy out" of the contract for a fee.
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from local banks, installer, the government and specialty lenders. 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 taking care of the system, you'll also have full ownership rights and can apply for many more benefits.
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