Benefits of Solar Energy
Solar energy offers multiple advantages. Here are some highlights.
- Lowered energy bills: With a solar array, you generate power without paying the tacked-on costs of grid-connected power. You can eliminate your bills completely if you go off-grid. Plus, a significant number of states offer net metering, which permit you to earn money by selling your unused energy back to the grid.
- Better energy independence: Solar panel systems can keep your home running through emergencies and blackouts. You can use your solar energy anytime with an optional battery storage system.
- Reduced carbon footprint: Utilizing solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Potomac Homeowners?
Governments and utilities often incentivize homeowners for embracing solar. Here are some of the rebates, tax credits 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: 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: Rebate Program
Website: pepco.comIncentive Amount:
LightingGet instant, in-store discounts on select ENERGY STAR certified lighting.
LED Bulbs: Up to $3 per bulb
LED Fixtures: $8 per fixture
Appliances
Clothes Dryer: $50
Clothes Washer: $75 - $100
Hybrid Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Smart Thermostat: $100
Dehumidifier: $30
HVAC
Air-Source Heat Pump: $400 (Tier 1) - $650 (Tier 2)
Central A/C: $300 (Tier 1) - $500 (Tier 2)
Geothermal Heat Pump: $1,500
ECM Furnace Motor: $50 - $100
Home Energy Check up: Free
Recycling
Refrigerator or Freezer: $50
Room A/C or Dehumidifier: $25
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 Potomac
Choosing a company is the first step toward an effective and cost-efficient solar array. Here are some essential aspects to remember while shopping for a solar provider.
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 hooks the system up to the grid. If you're installing a solar water heater, your contracting team must include a master plumber for permits and utility connections. Solar installers can also earn certificates from standards organizations and trade groups. The most prestigious 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 Potomac
Your solar panels' style will affect how much power you can generate. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
If you'd like to charge an electric vehicle (EV) 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 effective and convenient to use. Not every solar provider offers these optional components, so look for a provider that installs them if it's essential for you.
You can plan to spend about $17,700 on average for a five-kilowatt solar energy system in Potomac. Use the table in this section to get an idea of what amount Potomac solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,322 |
Solar Polycrystalline | $1,031 |
Thin-Film | $603 |
Solar Battery | $846 |
Solar Home EV Charger | $3,173 |
Financing Solar Energy in Potomac
Solar contractors use multiple different financing options to increase your savings and lower your costs. Though some providers offer unique payment plans, the most common are solar loans, solar leases, cash payments and power purchase agreements (PPAs). Most solar experts recommend a cash payment 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. Like a car or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a power purchase agreement 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 specific circumstances. Look for companies that offer two or more payment plans to find the right fit for your pocket.
The table below lists the average payback periods for different capacities of solar systems in Potomac.
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. City and state governments 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 | 2.9 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 Potomac
How much money could I save by going solar in Potomac?
How popular is solar energy in Potomac?
Should I expect a property value increase after switching to solar energy?
How long does an average solar system last?
How do I care for my new solar system?
How long does it take to pay back a solar loan in Potomac?
What's the difference between a PPA and traditional financing?
You might consider 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 financing options above.
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