Benefits of Solar Energy
Solar energy has several advantages that will enhance your home for years to come.
- Reduced carbon footprint: Utilizing solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
- Better energy independence: Photovoltaic solar panel systems with battery backups and storage systems function through blackouts and emergencies, and you won't have to rely on the electrical grid for your safety and well-being.
- Lowered energy bills: With solar energy systems, you generate power without paying the tacked-on costs of grid-connected power. Going off-grid can eliminate your bills completely. Plus, a significant amount of states offer net metering, which permit you to earn money by selling your unused energy back to the grid.
What Solar Incentives Are Available to Dearborn Homeowners?
Michigan's public agencies and power companies offer a number of solar incentives to help cut your solar system costs. Check out a breakdown of relevant solar programs where you live.
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 Dearborn
The purchase price and effectiveness of solar panels often rely on the provider that mounted them. Here are some important factors to consider while shopping for a solar company.
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. Solar companies can also obtain certifications from trade groups and standards organizations. The top ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Dearborn
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 provide a lower price point but produce less power. 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 components, such as battery storage and electric vehicle (EV) chargers, will increase 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 sells them if it's crucial for you.
You can expect to pay about $20,300 on average for a five-kilowatt solar energy system in Dearborn. Use the table in this section to get an idea of how much Dearborn solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,133 |
Solar Polycrystalline | $883 |
Thin-Film | $516 |
Solar Battery | $725 |
Solar Home EV Charger | $2,718 |
Financing Solar Energy in Dearborn
Solar companies 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, power purchase agreements (PPAs), solar loans and cash payments. We suggest making a cash payment or using 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 cut 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 spend more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) enables you to pay a monthly rate based only on the energy you use, similar to an electric bill. We usually don’t recommend these two options because you won't own the solar system and are disqualified from using solar incentives. Ask each business you're considering about the payment options it offers. A team member can help you determine the most suitable option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Dearborn.
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 | 2.1 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 Dearborn
How much energy and money could I save per year by switching to solar?
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