Benefits of Solar Energy
Solar energy has numerous advantages that will enhance your home for years to come.
- Reduced carbon footprint: Utilizing solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
- Lowered energy bills: You can avoid the added 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 to help pay for your energy bill.
- Better energy independence: Adding a battery backup or storage system lets you have dependable energy during grid outages and storms.
What Solar Incentives Are Available to Detroit Homeowners?
Michigan's public agencies and power companies offer a range of solar incentives to help cut your solar system costs. Here's 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 Detroit
The more comprehensive your company research is, the better your solar panels will ultimately function. Consider each of these elements in your company search.
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. You should also visit a company's website to learn about its private certifications. Two of the most recognized 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 Detroit
Your solar panels' style will influence how much energy you can produce. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
If you need to charge an electric vehicle (EV) or use your solar power in dark weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more effective and user-friendly. Not every solar company includes these extras, so look for a provider that installs them if it's essential for you.
If you're a resident of Detroit and want 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 | $1,133 |
| Solar Polycrystalline | $883 |
| Thin-Film | $516 |
| Solar Battery | $725 |
| Solar Home EV Charger | $2,718 |
Financing Solar Energy in Detroit
Choosing the correct financing solution will influence your overall solar system cost and potential savings. Common payment options include cash payments, loans, leases, and power purchase agreements. Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they save you from 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 an auto 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) lets you pay a monthly rate based only on the energy you use, similar to an electric bill. We generally don’t recommend these two choices because you won't own the solar system and cannot use solar incentives. Look for companies that offer several payment plans to find the right fit for your financial needs.
The table below lists the average payback periods for different capacities of solar systems in Detroit.
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, rebates, and incentives that could save you more money.
| 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 Detroit
How much money could I save by going solar in Detroit?
How common is solar energy in Detroit?
Will a solar PV system improve my Detroit home price?
What can I do to estimate my home's solar viability?
What is a Detroit solar panel's average lifespan?
How long does the photovoltaic installation process take?
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from specialty lenders, installer, local banks and the government. You'll need to pass a credit check to qualify for most of them. While the upfront costs are higher, and you'll be responsible for upkeep, you'll also have full ownership rights and can apply for many more financial rewards.
Should I get quotes from multiple Detroit solar companies?
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