Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Lower utility costs: Sourcing some or all of your own electricity will spend less on electricity long-term. Plus, some states provide net metering programs that enable you to sell your unused energy back to the grid, generating extra credits toward your energy bill.
- Better energy independence: Adding a battery backup or storage system lets you have dependable energy during storms and grid outages.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can reduce or eliminate your home's dependence on "traditional" sources.
What Solar Incentives Are Available to Troy Homeowners?
The state of Michigan offers a variety of solar incentives to help lower your solar system costs. Check out a breakdown of applicable 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 Troy
The purchase price and efficacy of solar panels often hinge on the provider that mounted them. Consider all of these criteria in your business 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 a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar sector's most trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Troy
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels produce less power, but start at a more budget-friendly price point. 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 system add-ons, 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 every solar contractor provides these extras, so look for a company that sells them if it's essential for you.
Generally speaking, it costs about $20,300 for a five-kilowatt solar array in Troy. This table shows more specific prices for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,170 |
| Solar Polycrystalline | $912 |
| Thin-Film | $533 |
| Solar Battery | $749 |
| Solar Home EV Charger | $2,807 |
Financing Solar Energy in Troy
There are various ways to pay for a new solar system, and the right one will reduce your expenses. A few of the most common options include loans, cash payments, power purchase agreements (PPAs), and leases. Though it requires a large up-front payment, cash is the most cost-effective choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the second most effective option. As with a car or home loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to use your panels for a set monthly rate, while PPAs let you pay just for the energy you use, much like an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Ask each company you're vetting about the payment plans it offers. A representative 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 Troy.
A 26% federal solar tax credit applies to new home solar systems purchased through 2032. Further incentives may be available through city and state governments, usually in the form of rebates and special financing programs.
| 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 |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Troy
How much money could I save by going solar in Troy?
Is solar energy easily accessible in Troy?
Should I expect a boost in my property value after switching to solar energy?
What if I live in a gloomy or heavily-wooded
How long does the photovoltaic installation process take?
What is the average payback period for Troy solar panels?
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from the government, local banks, specialty lenders and installer. 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 maintenance, you'll also have total ownership and can apply for many more benefits.
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
