Benefits of Solar Energy
Solar energy provides multiple perks. Let's look at a few of them.
- Lower energy bills: Producing some or all of your own energy will save you money on your electric bills long-term. Plus, some states offer net metering programs that make it possible for you to sell your unused energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Adding a battery backup or storage system lets you have dependable energy during storms and grid outages.
- Reduced carbon footprint: Utilizing solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Champaign Homeowners?
Illinois agencies and electric companies offer numerous solar incentives to help lower your solar system costs. Here is a breakdown of applicable solar programs where you live.
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
The price and efficacy of solar panels often depend on the solar company that installed them. Consider each of these aspects in your contractor search.
Licensing and Training
In Illinois, the state Commerce Commission issues licenses to distributed generation energy contractors, including residential solar contractors. 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 Champaign
The type of solar panels you select dictates how much electricity 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 the best for large residential installations, but they are excellent accessories for non-traditional roofs.
Additional system add-ons, such as battery storage and electric vehicle (EV) chargers, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar provider offers these additional features, so look for a provider that sells them if it's important for you.
If you're a resident of Champaign and want a five-kilowatt solar energy system, you could plan to spend about $18,800 for materials and labor. See 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
There are numerous ways to pay for a new solar system, and the right one will minimize your overhead. A few of the most common options include power purchase agreements (PPAs), leases, loans, and cash payments. Though it involves a large up-front payment, cash is the most affordable choice because it doesn't accrue interest and qualifies you for incentives. 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 let you rent your panels for a set monthly rate, while PPAs let you pay only 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 providers that offer multiple 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 Champaign.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Additional incentives may be available through city and state governments, usually in the form of rebates and special financing programs.
| 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
How much money could I save by going solar in Champaign?
How prevalent is solar energy in Champaign?
Will a solar PV system improve my Champaign home price?
How many years does a typical solar system last?
How long does the photovoltaic installation process require?
What size should my new Champaign solar system be?
What's the difference between a PPA and traditional financing?
You might think about a PPA if you don’t want to be responsible for maintaining your panels and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any solar financial incentives. Many solar experts don’t recommend PPAs. Our guide covers other financing options above.
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