Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Better energy independence: Solar panel systems can keep your home powered through emergencies and blackouts, giving you additional security. You can use your solar energy anytime with an optional battery storage system.
- Lowered energy bills: With solar energy systems, you produce power without paying the tacked-on costs of grid-tied power. You can eliminate your bills completely if you go off-grid. Plus, a significant amount of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
- Reduced carbon footprint: Using clean solar power reduces your dependence on fossil fuels, which release greenhouse gases that damage the environment.
What Solar Incentives Are Available to Sioux City Homeowners?
Iowa's public agencies and power companies offer numerous solar incentives to help cut your solar system costs. Below is a breakdown of applicable solar programs where you live.
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: 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 Sioux City
The purchase price and effectiveness of solar panels often hinge on which company installed them. Consider each of these elements in your company search.
Licensing and Training
In Iowa, anyone making at least $2,000 annually 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 an electrical contractors' or journeymens' license. You should also visit a company's website to learn about its private certifications. Two of the most respected are the PV Installation Professional and Solar Heating Installer 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 Sioux City
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can improve your solar system's efficiency. Not all solar contractors provide these extras, so look for a contractor that sells them if it's essential for you.
Generally speaking, it will cost about $20,050 for a five-kilowatt solar array in Sioux City. This table displays more specific costs for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,093 |
| Solar Polycrystalline | $852 |
| Thin-Film | $498 |
| Solar Battery | $699 |
| Solar Home EV Charger | $2,623 |
Financing Solar Energy in Sioux City
Solar installers use multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are solar leases, cash payments, solar loans and power purchase agreements (PPAs). Most solar experts recommend a cash payment or using a solar loan. Cash payments require 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 a car or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases allow you to pay a monthly rate to rent your panels, while a PPA lets you pay a fluctuating rate based on only the energy you use. We generally advise against these options since you won't own your system and are disqualified from solar incentives, but they might be appropriate in particular circumstances. Look for providers that offer two or more payment plans to find the right fit for your financial needs.
The table below lists the average payback periods for different capacities of solar systems in Sioux City.
You are eligible for a 26% federal solar tax credit for new solar power systems until the year 2032. Local and state governments and utility companies might also offer discounts, rebates, and unique financing solutions that could save you more.
| 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 Sioux City
How much money could I save by going solar in Sioux City?
Is solar energy common in Sioux City?
Will a solar PV system raise my Sioux City home worth?
What's a Sioux City solar panel's average lifespan?
What size should my new Sioux City solar system be?
How long does it take to pay back a solar loan in Sioux City?
How does "net metering" work, and do I need to participate?
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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