Benefits of Solar Energy
Solar energy has several 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 "traditional" sources.
- Lowered energy bills: With solar panels, you generate 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 offer net metering, which permit you to earn money by selling your unused energy back to the grid.
- Better energy independence: Adding a battery storage system lets you have trustworthy energy during storms and grid outages.
What Solar Incentives Are Available to Ann Arbor Homeowners?
Governments and utility companies often reward homeowners for switching to solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
Incentive Type: Loan Program
Website: michigansaves.orgIncentive Amount:
$30,000
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 Ann Arbor
The more thorough your company investigation is, the better your photovoltaic system will ultimately work. Here are some important factors to consider while shopping for a solar provider.
Licensing and Training
Michigan law has a de facto licensing requirement for solar photovoltaic installers. In other words, while solar contractors technically don't need a license by the letter of the law, workers dealing with electrical wiring jobs do need a license. Solar thermal systems must be installed by a licensed mechanical contractor. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar sector's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Ann Arbor
Your solar panels' type will impact how much electricity 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 have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
If you'd like to charge an electric vehicle (EV) or use your solar power in cloudy weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more productive and convenient to use. Not all solar companies offer these extras, so look for a contractor that installs them if it's essential for you.
If you're a resident of Ann Arbor and are looking into a five-kilowatt solar energy system, you could expect to pay about $20,300 for parts and installation. See more information on specific component and solar panel costs in the table.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,220 |
Solar Polycrystalline | $952 |
Thin-Film | $556 |
Solar Battery | $781 |
Solar Home EV Charger | $2,928 |
Financing Solar Energy in Ann Arbor
Choosing the optimal financing plan will impact your overall solar system cost and possible savings. Common payment options include cash payments, leases, power purchase agreements, and loans. 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. Much like an auto 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 PPA lets you pay a variable 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. We advise working with an installer that offers multiple financing options. Speak with each agent about what's available, and acquire more than one estimate for the best odds of keeping within your financial plan.
The table below lists the average payback periods for different capacities of solar systems in Ann Arbor.
You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. Municipal and state governments and utility companies might also offer discounts, rebates, and dedicated financing plans that could save you more.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.1 years |
2 kW | 4.1 years |
5 kW | 10.2 years |
10 kW | 20.5 years |
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Frequently Asked Questions About Solar in Ann Arbor
How much money could I save by going solar in Ann Arbor?
Is solar energy widely available in Ann Arbor?
Will a solar PV system boost my Ann Arbor home worth?
What can I do to calculate my home's solar viability?
How long does the solar panel installation process require?
What is the average payback period for Ann Arbor solar panels?
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
What are the signs I shouldn't use a particular solar company for my job?
- Pressuring you into signing a contract
- Dodging questions about references, credentials and training, cost and warranties
- Inflexible options
- Rushing through the site assessment
- Limited customer feedback
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