Benefits of Solar Energy
Solar energy comes with multiple benefits. Let's look at a few of them.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Lowered energy bills: You can avoid the expensive cost of grid-tied power by generating some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back for credits on your bill.
- Better energy independence: Adding a battery storage system lets you have reliable energy during grid outages and storms.
What Solar Incentives Are Available to Covington Homeowners?
Kentucky homeowners who go solar could qualify for reimbursements, rebates, special financing and tax credits. Here are just a few of the region's incentive programs.
Incentive Type: Rebate Program
Website: duke-energy.comIncentive Amount:
Heat Pump Water Heaters: $350/unit
Central Air Conditioning or Heat Pump: up to $400/unit
Geothermal Heat Pump: $400/unit
Variable Speed Pool Pumps: $300/unit
Attic Insulation and Attic Air Sealing: $250/unit
Duct Sealing: $100/unit
Duct Insulation: $75/unit
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 Covington
The purchase price and performance of solar panels often hinge on which company installed them. Here are some crucial criteria to bear in mind while shopping for a solar installer.
Licensing and Training
Residential solar energy companies in Kentucky don't need to be licensed electricians or plumbers. However, a plumber or electrician licensed by the Commonwealth must be the one to retain building permits and connect the system to meters and utility grids. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Covington
The style of solar panels you purchase dictates how much electricity you can generate. Monocrystalline panels and high-quality and cost more but give you the best performance. 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.
Additional components, such as electric vehicle (EV) chargers and battery storage, will increase your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar contractor provides these additional features, so look for a contractor that sells them if it's essential for you.
You can plan to spend about $18,250 on average for a five-kilowatt solar energy system in Covington. Check the table in this section to get an idea of what amount Covington solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,116 |
| Solar Polycrystalline | $871 |
| Thin-Film | $509 |
| Solar Battery | $714 |
| Solar Home EV Charger | $2,679 |
Financing Solar Energy in Covington
There are a plethora of ways to pay for new solar panels, and the right one will lower your costs. A few of the most common options include leases, power purchase agreements (PPAs), loans, and cash payments. We suggest making a cash payment or securing a solar loan for the highest return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also own your system and can apply for solar panel incentives to minimize your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in installments while still enjoying energy bill savings and solar incentives. However, you’ll pay more in total due to accruing interest. Solar leases allow you to rent your panels for a set monthly rate, while PPAs let you pay just for the energy you use, akin 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. Ask each company you're evaluating about the financing options it offers. A consultant can help you determine the optimal option for your pocketbook.
The table below lists the average payback periods for different capacities of solar systems in Covington.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, local governments and utilities may have their own rebates and financing plans that could reduce your total cost even more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.3 years |
| 2 kW | 4.6 years |
| 5 kW | 11.4 years |
| 10 kW | 22.9 years |
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Frequently Asked Questions About Solar in Covington
How much money could I save by going solar in Covington?
How prevalent is solar energy in Covington?
Should I expect a property value increase after adopting solar power?
What if I live in a gloomy or dark
How many years does an average solar system last?
What care do my solar panels need, and how frequently do they need it?
How can I maximize 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
How are traditional solar loans and PPAs different?
You might look into a PPA if you don’t want to be responsible for maintaining your panels and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any solar financial incentives. Many solar experts don’t recommend PPAs. Our guide covers other payment options above.
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