Benefits of Solar Energy
Solar energy offers numerous advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power reduces your dependence on fossil fuels, which release greenhouse gases that damage the environment.
- Lowered energy bills: You can skip the premium cost of grid-tied power by creating 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: Solar panel systems can keep your home powered through blackouts and emergencies. You can use your solar energy anytime with optional battery storage.
What Solar Incentives Are Available to Louisville Homeowners?
Governments and power companies often incentivize homeowners for embracing solar. Here are some of the rebates, tax credits or other programs you could qualify for.
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 Louisville
Choosing a company is the first step toward a well-oiled and valuable solar energy system. Consider all of these aspects in your business search.
Licensing and Training
Home solar energy contractors in Kentucky don't have to be licensed electricians or plumbers. However, a plumber or electrician licensed by the Commonwealth must be on the team to retain building permits and connect the system to meters and utility grids. You should also visit a company's website to learn about its private credentials. Two of the most prestigious are the PV Installation Professional and Solar Heating Installer certificates, backed 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 Louisville
The style of solar panels you purchase decides how much electricity you can produce. 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 meant for large home installations, but they're excellent for small projects like sheds and RVs.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can improve your solar system's performance. Not every solar company includes these optional components, so look for a contractor that sells them if it's essential for you.
If you're a resident of Louisville and are looking into a five-kilowatt solar energy system, you could expect to pay about $18,250 for parts and installation. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,147 |
| Solar Polycrystalline | $894 |
| Thin-Film | $523 |
| Solar Battery | $734 |
| Solar Home EV Charger | $2,752 |
Financing Solar Energy in Louisville
Solar providers 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, power purchase agreements (PPAs) and solar loans. Most solar experts recommend paying cash 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 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 determined by the energy you use, as with an electric bill. We usually don’t recommend these two options because you won't own the system and are disqualified from using solar incentives. We advise working with an installer that offers multiple financing options. Ask each representative about what's available, and get 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 Louisville.
A 26% federal solar tax credit applies to new residential solar equipment purchased through 2032. Further 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 | 2.3 years |
| 2 kW | 4.6 years |
| 5 kW | 11.4 years |
| 10 kW | 22.9 years |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Louisville
How much energy and money could I save per year by switching to solar?
How common is solar energy in Louisville?
Should I expect a property value increase after adopting solar power?
How long does the solar installation process last?
What maintenance do my solar panels need, and how often do they need it?
How long does it take to pay back a solar loan in Louisville?
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
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
