Benefits of Solar Energy
Solar energy provides multiple benefits. Let's look at a few of them.
- Reduced carbon footprint: Using clean solar power lowers your dependence on fossil fuels, which release greenhouse gases that damage the environment.
- Better energy independence: Solar panel systems with battery backups and storage systems function through blackouts and emergencies, and you won't have to depend on the electrical grid for your safety and well-being.
- Smaller power bills: Producing some or all of your own power will cut power costs 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.
What Solar Incentives Are Available to Urbana Homeowners?
Illinois homeowners who go solar could qualify for special financing, tax credits, rebates and reimbursements. Here are just a few of the region's incentive programs.
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 Urbana
Choosing a company is the first step toward an effective and valuable solar array. Consider all of these criteria in your contractor search.
Licensing and Training
In Illinois, the state Commerce Commission issues licenses to distributed generation energy contractors, including solar installers. Solar providers can also obtain certificates from trade groups and standards organizations. The most respected 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 Urbana
Your solar modules' type will influence how much power you can generate. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
If you need to charge an electric vehicle (EV) or use your solar power in dark weather, you can pay extra for accessories. By choosing the right components, you can make your system more efficient and user-friendly. Not every solar contractor provides these add-ons, so look for a provider that sells them if it's essential for you.
A majority of Urbana homeowners select solar systems sized for five kilowatts (kW) of electrical capacity. These systems run about $18,800 to install, considering both materials and labor. You can find more specific solar cost information 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 Urbana
Choosing the ideal financing solution will impact your overall solar system cost and expected savings. Common payment options include cash payments, loans, leases, and power purchase agreements. Most solar experts recommend a cash payment or using a solar loan. Cash payments demand a large up-front sum, but they help you avoid 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. Much like a home or auto loan, you'll pay a set monthly rate with potentially $0 down. Solar leases let you use your panels for a fixed 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 do not provide you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. We recommend working with a provider that offers multiple financing options. Talk to each consultant about what's available, and acquire more than one estimate for the best odds of keeping within your budget.
The table below lists the average payback periods for different capacities of solar systems in Urbana.
A 26% federal solar tax credit applies to new residential solar equipment purchased through 2032. Extra incentives may be available through local 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 Urbana
How much energy and money could I save per year by switching to solar?
How common is solar energy in Urbana?
Will solar energy systems boost my Urbana home price?
Could I still use solar power if I live in a wooded, dark, or rainy area?
What's a Urbana solar panel's average lifespan?
How do I care for my new solar system?
What are some "red flags" to watch for as I research companies?
- Pushy sales approach
- Dodging questions about warranties, cost, credentials and training and references
- Inflexible options
- Superficial, rushed site evaluation
- Limited customer feedback
Should I get quotes from multiple Urbana solar companies?
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