Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Solar is a highly abundant clean energy source, meaning you can reduce or eliminate your home's dependence on fossil fuels.
- Better energy independence: Photovoltaic solar panel systems with battery backups and storage systems operate through blackouts and emergencies, and you won't have to rely on the electrical grid for your safety and comfort.
- Lower utility costs: Sourcing some or all of your own electricity will cut power costs long-term. Plus, some states offer net metering programs that enable you to sell your surplus energy back to the grid, generating extra credits toward your energy bill.
What Solar Incentives Are Available to Elgin Homeowners?
Illinois' public agencies and power companies offer several solar incentives to help lower your solar system costs. Here is a breakdown of eligible solar programs where you live.
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies
Incentive Type: Rebate Program
Website: comed.comIncentive Amount:
Appliances
Air Purifier: $50
Clothes Washer: $50
Dehumidifier: $50
Electric Clothes Dryer: $50
Freezer: $50
Refrigerator: $50
Room Air Conditioner: $25
Refrigerator/Freezer Recycling: Free pickup and $50, plus an additional $10 if recycling a room A/C at the same time
Heating & Cooling
Air Source Heat Pump: $400 - $600
Central A/C: $300 - $600
Ductless Mini-Split Heat Pump: $400
Geothermal Heat Pump: Up to $6,000/home
Furnace Blower Motor (ECM): $50 - $100
Miscellaneous
Advanced Power Strip: $10
Air Sealing: Up to $400/home
Attic Insulation: Up to $300/home
Duct Sealing: Up to $500/home
Lighting: In-store discounts, varies
Pool Pump: $275
Smart Thermostat: $100
Wall Insulation: Up to $400/home
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 Elgin
Choosing a company is the first step toward an effective and valuable solar system. Here are some important factors to consider while shopping for a solar installer.
Licensing and Training
In Illinois, the state Commerce Commission licenses distributed generation energy contractors, including solar installers. You should also visit a company's website to learn about its private credentials. Two of the most prestigious are the Solar Heating Installer and PV Installation Professional certificates, backed 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 Elgin
Your solar modules' model will impact how much electricity you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
Additional components, 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 company provides these optional components, so look for a contractor that sells them if it's important for you.
If you're a resident of Elgin and are considering getting a five-kilowatt solar energy system, you could plan to spend about $18,800 for parts and installation. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,191 |
| Solar Polycrystalline | $929 |
| Thin-Film | $543 |
| Solar Battery | $762 |
| Solar Home EV Charger | $2,858 |
Financing Solar Energy in Elgin
Solar installers offer multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are power purchase agreements (PPAs), solar loans, solar leases and cash payments. Though it requires a large up-front payment, cash is the most affordable choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the second most effective option. As with a home or auto loan, 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 involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) enables you to pay a monthly rate based only on the energy you use, like an electric bill. We generally don’t recommend these two options because you won't own the system and are disqualified from using solar incentives. Look for companies that offer two or more payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in Elgin.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Extra 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 Elgin
How much money could I save by going solar in Elgin?
Is solar energy common in Elgin?
Will a solar PV system improve my Elgin home value?
What if I live in a gloomy or heavily-wooded
How can I assess my property's solar feasibility?
What's the average solar system size in Elgin?
What is "net metering," and how does it work?
Some states or power companies require you to enroll in net metering when installing your solar system, while others give you a choice. Either way, once you participate, you'll get a bill credit or check for your excess generation at a retail or wholesale rate.
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from local banks, specialty lenders, installer and the government. You'll need to pass a credit check to qualify for most of them. While the upfront costs are higher, and you'll be responsible for upkeep, you'll also have total ownership and can apply for many more incentives.
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