Benefits of Solar Energy
Solar energy offers numerous advantages that will enhance your home for years to come.
- Better energy independence: Adding a solar battery storage system lets you have dependable energy during grid outages and storms.
- Reduced energy costs: Generating some or all of your own power will cut power costs long-term. Plus, some states provide net metering programs that make it possible for you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
- Reduced carbon footprint: Solar is a highly abundant clean energy source, meaning you can lower or beat your home's dependence on fossil fuels.
What Solar Incentives Are Available to Ames Homeowners?
Governments and utility companies often incentivize homeowners for adopting solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Property Tax Incentive
Incentive Amount:
100% of value added by renewable system
Incentive Type: Sales Tax Incentive
Website: tax.iowa.govIncentive Amount:
100% of sales tax
Incentive Type: Personal Tax Credit
Website: tax.iowa.govIncentive Amount:
50% of Federal ITC (15% for 2019 and earlier, 13% for 2020, 11% for 2021, 5% for 2022, 0% for 2023 and later).
Incentive Type: Property Tax Incentive
Website: state.ia.usIncentive Amount:
Property valued at 0% of the net acquisition cost in the first assessment year, increasing annually by 5 percentage points to a maximum of 30% of the net acquisition cost in the 7th and succeeding years
Incentive Type: Property Tax Incentive
Website: iowa.govIncentive Amount:
100% exemption for 10 years
Incentive Type: Personal Tax Credit
Website: tax.iowa.govIncentive Amount:
20% of the Federal Tax Credit, equivalent to 6% of the system cost
Incentive Type: Corporate Tax Exemption
Website: tax.iowa.govIncentive Amount:
100% exemption for self-generators, landfill gas and wind
Reduced rate for large hydro
Incentive Type: Rebate Program
Website: alliantenergy.comIncentive Amount:
Advanced Power Strips: up to $20
Air Source Heat Pump: $300-$800 for existing homes, $180-$480 for new homes
Appliance Recycling: up to $50
Central A/C: $150-$600 for existing homes, $90-$360 for new homes
Ductless Mini-Split Heat Pump: Varies
Electric Heat Pump Water Heater: $300-$350 for existing homes, $180-$210 for new homes
Electric HVAC System Tune-Up: up to $50
Gas Furnace: $180 for existing homes, $80 for new homes
Geothermal Heat Pump: $1,320-$1,750 for existing homes, $790-$1,050 for new homes
Learning Thermostat: $100 for existing homes, $60 for new homes
LED Light Bulbs: In-Store Rebates
Online Home Energy Assessment: FREE
Room Air Purifier: up to $30
Variable Speed Pool Pumps: up to $220
Incentive Type: Rebate Program
Website: cityofames.orgIncentive Amount:
Energy Star New Home: $250
Energy Audit: FREE
LED Lighting: 20% of cost
Refrigerators: $25 - $75
Dishwashers: $25
Clothes Washing Machines: $50
Electric Dryer: $50
Dehumidifier: $25
Air Conditioner: Varies by technology
Solar Photovoltaics: $300/kW
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 Ames
The purchase price and performance of solar panels often depend on the provider that installed them. Make your choice based on the following essential elements.
Licensing and Training
In Iowa, anyone making at least $2,000 per year from non-DIY solar or electrical work is a contractor and must pursue licensure from the Division of Labor. To install solar PV systems, a company will need a journeymens' or electrical contractors' license. Solar companies can also obtain certifications from trade groups and standards organizations. The most respected ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Ames
The kind of solar panels you select determines how much power you can produce. Monocrystalline panels and high-quality and give you the best performance but cost more upfront. Polycrystalline panels work with a tried-and-true mechanism and cost less, but produce less power. Thin-film panels aren't recommended for large residential installations, but they are ideal for small projects like converting RVs and sheds.
If you want to charge an electric car or use your solar power in cloudy weather, you can pay extra for add-ons. By selecting the right components, you can make your system 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 important for you.
Generally speaking, it costs about $20,050 for a five-kilowatt solar array in Ames. This table displays more specific prices for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,099 |
| Solar Polycrystalline | $857 |
| Thin-Film | $501 |
| Solar Battery | $703 |
| Solar Home EV Charger | $2,637 |
Financing Solar Energy in Ames
Choosing the correct financing option will impact your overall solar system cost and possible savings. Common payment options include leases, cash payments, loans, and power purchase agreements. Most solar experts recommend paying cash 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. Similar to an auto or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases allow you to rent your panels for a set monthly rate, while PPAs let you pay just 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 installers that offer multiple 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 Ames.
The IRS allows you to claim a 26% federal solar tax credit on your new solar panels, so long as you purchase it before 2032. Municipal authorities and utilities might also offer their own financing programs, incentives, and rebates that could save you more money.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.1 years |
| 2 kW | 4.3 years |
| 5 kW | 10.6 years |
| 10 kW | 21.3 years |
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Frequently Asked Questions About Solar in Ames
How much money could I save by going solar in Ames?
How common is solar energy in Ames?
Should I anticipate a boost in my property value after going solar?
How long does a common solar system last?
What's the average solar system size in Ames?
What is the average payback period for Ames solar panels?
How can I boost my solar array's performance?
- optimize the panels' position with your solar installer
- regularly clean your solar panels
- upgrade to a more efficient inverter trim or cut down trees in the way of your panels
- use energy-efficient appliances
What are some "red flags" to watch for as I research companies?
- Aggressive sales pitch
- Not being straightforward about credentials and training, warranties, references and cost
- "One-size-fits-all" approach
- Rushing through the site assessment
- Limited customer feedback
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