Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Embracing solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
- Lower utility costs: Generating 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 enable you to sell your extra energy back to the grid, generating extra credits toward your energy bill.
- Better energy independence: Adding a solar battery storage system lets you have dependable energy during grid outages and storms.
What Solar Incentives Are Available to Peoria City Homeowners?
Illinois agencies and electric companies offer multiple solar incentives to help offset 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: 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 Peoria City
The price and performance of solar panels often depend on the provider that mounted them. Make your choice based on the following important considerations.
Licensing and Training
In Illinois, the state Commerce Commission licenses distributed generation energy contractors, including solar installers. Solar providers can also earn certifications from trade groups and standards organizations. The top ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Peoria City
The type of solar panels you purchase decides how much electricity you can generate. Monocrystalline panels and high-quality and give you the best performance but cost more upfront. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't the best for large residential installations, but they are excellent accessories for non-traditional roofs.
If you need to charge an electric vehicle (EV) or use your solar power in cloudy weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more productive and convenient to use. Not all solar contractors provide these add-ons, so look for a company that sells them if it's a priority for you.
You can expect to pay about $18,800 on average for a five-kilowatt solar energy system in Peoria City. Check the table in this section to get an idea of the amount Peoria City solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,165 |
| Solar Polycrystalline | $909 |
| Thin-Film | $531 |
| Solar Battery | $746 |
| Solar Home EV Charger | $2,796 |
Financing Solar Energy in Peoria City
Choosing the correct financing solution will impact your overall solar system cost and possible savings. Common payment options include loans, power purchase agreements, 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 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 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 typically don’t recommend these two choices because you won't own the system and cannot use solar incentives. We recommend working with a contractor that offers multiple financing options. Talk to each consultant about what's available, and acquire more than one estimate for the best odds of staying within your spending limits.
The table below lists the average payback periods for different capacities of solar systems in Peoria City.
The IRS allows you to claim a 26% federal solar tax credit on total system costs, so long as you purchase it before 2032. Municipal authorities and utilities might also offer their own incentives, financing programs, and rebates that could save you more money.
| 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 Peoria City
How much energy and money could I save per year by switching to solar?
How popular is solar energy in Peoria City?
Will a solar PV system improve my Peoria City home value?
How can I assess my home's solar suitability?
How long does the solar panel installation process last?
What is the average payback period for Peoria City solar panels?
What are some "red flags" to watch for as I research companies?
- Pressuring you into signing a contract
- Being evasive about warranties, cost, references and credentials and training
- Limited or no customization
- Not thoroughly inspecting your site
- No references or testimonials
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 opt out of the contract for a fee.
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