Benefits of Solar Energy
Solar energy has numerous advantages that will enhance your home for years to come.
- Reduced carbon footprint: Solar is the universe's most abundant clean energy source, meaning you can minimize or conquer your home's dependence on fossil fuels.
- Lower utility costs: Sourcing some or all of your own power will save you money on your electric bills 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.
- Better energy independence: Solar panel systems can keep your home functioning through blackouts and emergencies, giving you additional security. You can use your solar energy anytime with optional battery backup.
What Solar Incentives Are Available to Ellicott City Homeowners?
Governments and utilities often incentivize homeowners for switching to solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
Incentive Type: Rebate Program
Website: energy.maryland.govIncentive Amount:
PV: $1,000/project (flat per installation/household incentive)
SWH: $500/project (flat per installation/household incentive)
New GHC: $3,000/project
GHC Replacement: $500/project
Incentive Type: Solar Renewable Energy Credit Program
Website: psc.state.md.usIncentive Amount:
Varies based on market conditions
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% exemption from sales and use tax
Incentive Type: Property Tax Incentive
Incentive Amount:
100% real property tax exemption for solar and wind energy property
Incentive Type: Rebate Program
Website: energy.maryland.govIncentive Amount:
Stick Burning Stove: $500
Pellet Burning Stove: $700
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% exemption
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies by jurisdiction; credit may be available for up to 3 years.
Incentive Type: Rebate Program
Website: bgesmartenergy.comIncentive Amount:
Appliances & Recycling
Clothes Dryer (Electric): $50
Clothes Washer: $75 - $100
Hybrid Heat Pump Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Dehumidifier: $30
Refrigerator or Freezer Recycling: $50, plus $25 bonus when recycling an old, working room A/C or dehumidifier at the same time
Room A/C or Dehumidifier Recycling (*May 20, 2017 only*): $25
Smart Thermostat: $100
Heating & Cooling
Air-Source Heat Pump: $400 - $650
Central A/C: $300 - $500
Gas Furnace: $250
Furnace Blower Motor: $50 - $100
Geothermal Heat Pump: $1,500
Lighting
Instant discounts vary by participating retailer; see program website
Incentive Type: Rebate Program
Website: bgesmartenergy.comIncentive Amount:
Appliances & Recycling
Clothes Dryer (Electric): $50
Clothes Washer: $75 - $100
Hybrid Heat Pump Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Dehumidifier: $30
Refrigerator or Freezer Recycling: $50, plus $25 bonus when recycling an old, working room A/C or dehumidifier at the same time
Room A/C or Dehumidifier Recycling (*May 20, 2017 only*): $25
Smart Thermostat: $100
Heating & Cooling
Air-Source Heat Pump: $400 - $650
Central A/C: $300 - $500
Gas Furnace: $250
Furnace Blower Motor: $50 - $100
Geothermal Heat Pump: $1,500
Lighting
Instant discounts vary by participating retailer; see program website
Incentive Type: Rebate Program
Website: energy.maryland.govIncentive Amount:
Residential: $4,000/kW of normalized capacity at 11 m/s
Community: $1000/kW - $4000/kW, depending on the system capacity
Incentive Type: Property Tax Incentive
Website: howardcountymd.govIncentive Amount:
High Performance Buildings (except R-2, R-3 buildings): credit of 10% to 75% of taxes owed for 3 to 5 years; varies by building type and building rating
High Performance R-2, R-3 Buildings: credit of 19% to 100% of taxes owed for 4 years; varies by building rating and declines for each year claimed (i.e., the Year 2 % is less than Year 1)
Green Buildings (w/energy conservation devices): credit of 14% - 20% of cost of device for 3 years; varies by building rating
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 Ellicott City
Choosing a company is the first step toward an effective and valuable solar energy system. Consider each of these criteria in your contractor search.
Licensing and Training
A Maryland solar PV installation team must include a Home Improvement Commission-licensed contractor and a master electrician with at least seven years of experience. The contractor installs the panels, while the master electrician pulls permits and connects the system to the grid. If you're installing a solar water heater, your contracting team must include a master plumber for utility connections and permits. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar industry's most credible trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Ellicott City
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels produce less power, but start at a more budget-friendly price point. 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.
Additional accessories, such as electric vehicle (EV) chargers and battery storage, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar companies offer these extras, so look for a company that installs them if it's important for you.
You can plan to spend about $17,700 on average for a five-kilowatt solar energy system in Ellicott City. Use the table in this section to get an idea of how much Ellicott City solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,239 |
Solar Polycrystalline | $967 |
Thin-Film | $565 |
Solar Battery | $793 |
Solar Home EV Charger | $2,974 |
Financing Solar Energy in Ellicott City
Choosing the right financing option will influence your overall solar system cost and expected savings. Common payment options include leases, cash payments, power purchase agreements, and loans. Though it requires a large up-front payment, cash is the most cost-effective choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the second most effective option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for valuable solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to use your panels for a fixed monthly rate, while PPAs let you pay only for the energy you use, akin 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. We advise working with an installer that offers multiple financing options. Ask each representative about what's available, and obtain more than one estimate for the best odds of staying within your budget.
The table below lists the average payback periods for different capacities of solar systems in Ellicott City.
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 financing plans and rebates that could reduce your total cost even more.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.9 years |
2 kW | 5.7 years |
5 kW | 14.3 years |
10 kW | 28.6 years |
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Frequently Asked Questions About Solar in Ellicott City
How much energy and money could I save per year by switching to solar?
Is solar energy widely available in Ellicott City?
Will solar panels increase my Ellicott City home worth?
Could I still use solar power if I live in a dark, wooded, or rainy area?
How do I care for my new solar system?
What size should my new Ellicott City solar system be?
How can I maximize my solar panels' 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
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