Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power lowers your dependence on conventional, less environmentally-friendly sources.
- Lowered energy bills: You can skip the premium cost of grid-tied power by generating some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back for credits on your bill.
- Better energy independence: Photovoltaic solar panel systems with energy storage systems function through blackouts and emergencies, and you won't have to depend on your power company for your safety and well-being.
What Solar Incentives Are Available to Sterling Heights Homeowners?
Michigan's public agencies and power companies offer numerous 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 Sterling Heights
The more informed your company research is, the better your solar installation will ultimately work. Consider all of these factors in your company search.
Licensing and Training
Michigan law has a de facto licensing requirement for solar photovoltaic installers. In other words, the law doesn't explicitly require solar installers to be licensed, but workers dealing with electrical wiring jobs do need a license. Solar thermal systems must be installed by a licensed mechanical contractor. Check for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar industry's most trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Sterling Heights
Your solar panels' model will impact how much energy you can generate. Monocrystalline panels are among the highest quality and cost the most but perform the best. 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.
Additional accessories, such as battery storage and electric vehicle (EV) chargers, will raise your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar companies include these extras, so look for a contractor that installs them if it's important for you.
If you're a resident of Sterling Heights and want a five-kilowatt solar energy system, you could expect to pay about $20,300 for materials and labor. Find more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,144 |
| Solar Polycrystalline | $892 |
| Thin-Film | $521 |
| Solar Battery | $732 |
| Solar Home EV Charger | $2,745 |
Financing Solar Energy in Sterling Heights
Solar contractors offer 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 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. Much like a home or car loan, you'll pay a set monthly rate with as little as $0 down. Solar leases allow you to pay a monthly rate 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 suitable in particular circumstances. Ask each company you're vetting about the payment plans it offers. A salesperson can help you determine the best option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Sterling Heights.
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 Sterling Heights
How much energy and money could I save per year by switching to solar?
How common is solar energy in Sterling Heights?
Will solar energy systems increase my Sterling Heights home value?
How many years will a typical solar system last?
How long does the photovoltaic installation process require?
What is the average payback period for Sterling Heights solar panels?
How does "net metering" work, and do I need to participate?
What's the difference between a PPA and a solar lease?
If you choose a lease, you'll make fixed payments each month.
With both leases and PPAs, you do not own your panels and lose eligibility for some incentives. Further, you'll have to "buy out" or transfer the contract if you sell your home during the term.
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