Benefits of Solar Energy
Solar energy provides numerous advantages that will enhance your home for years to come.
- Reduced energy costs: Sourcing some or all of your own energy will save you money on your electric bills long-term. Plus, some states offer net metering programs that enable you to sell your unused energy back to the grid, generating additional credits toward your energy bill.
- Reduced carbon footprint: Utilizing solar is a surefire way to minimize your carbon footprint and home fossil fuel dependency.
- Better energy independence: Photovoltaic solar panel systems with energy storage systems operate through blackouts and emergencies, and you won't have to depend on the grid for your safety and comfort.
What Solar Incentives Are Available to Apple Valley Homeowners?
Governments and power companies often reward homeowners for embracing solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Performance-Based Incentive
Website: xcelenergy.comIncentive Amount:
Systems 0.5 kW - 25 kW: $0.005/kWh
Medium-sized Systems 25.1-500 kW: $0.0375/kWh
Large Systems (>500kW): Determined through competitive bid
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% exemption
Incentive Type: Property Tax Incentive
Incentive Amount:
Solar: 100% exemption from real property taxes
Wind: 100% exemption from real and personal property taxes
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% of sales tax
Incentive Type: Rebate Program
Website: xcelenergy.comIncentive Amount:
Refrigerator/Freezer Recycling: $50
Natural Gas Furnace Existing Home: $200-$400
Natural Gas Furnace New Construction: $100-$200
Natural Gas Hot Water Boiler: $100-$400
ECM Furnace: $100
Central AC: $150-$450
Tank Water Heater: $75-$500
Tankless Water Heater: $250
Attic/Wall Insulation: 30% of project cost
Air Sealing: $150-$200
Furnaces: $200-$425
Boilers: $125-$400
ECM Motor Furnace Fan: $125
Programmable Thermostat: $10
Heat Pumps: $175-$475
Water Heating: $100-$250
Clothes Washer: $10
Refrigerator: $15
Ground Source Heat Pump: $150/ton
Incentive Type: Rebate Program
Website: bpu.orgIncentive Amount:
Dishwasher: $35
Clothes Washer: $35
Electric Clothes Dryer: $35
Refrigerator: $35
Freezer: $35
Dehumidifier: $20
Room/Window A/C: $35
High Efficiency Electric Water Heater: $35
Central A/C Tune-Up: $35
Central A/C: $200-$350
Mini Split/Ductless A/C: $250
ECM Replacement Motor: $100
Furnaces: $200-$375
Heat Pump Water Heater: $250
Air Source Heat Pump: $250
Geothermal Heat Pump: $100/ton
Incentive Type: Grant Program
Website: xcelenergy.comIncentive Amount:
Varies
Incentive Type: Loan Program
Website: connexusenergy.comIncentive Amount:
$7,500
OR
$20,000
Incentive Type: Rebate Program
Website: energywisemn.comIncentive Amount:
Varies by measure and member cooperative offering.
Incentive Type: Loan Program
Website: mncee.orgIncentive Amount:
$20,000
Incentive Type: Loan Program
Website: mnhousing.govIncentive Amount:
$15,000. Applicants may be eligible for higher loan and term amounts depending on income
Incentive Type: Performance-Based Incentive
Website: mn.govIncentive Amount:
1.5¢/kWh
1.0¢/kWh for certain hydro facilities in need of repair
Incentive Type: Rebate Program
Website: dakotaelectric.comIncentive Amount:
LEDs: up to $2/bulb
LED Yard Light: $30/fixture
Clothes Dryer: $25
Central AC/Heat Pump Tune-Up: $25
Central A/C Installation: $280- $330 depending on SEER rating
Air-Source Heat Pump Installation: $480- $630 depending on SEER rating
Ductless Air-Source Heat Pump: $300 - $500
Geothermal Heat Pump: $400/ton
Electric Thermal Storage Heat: $50/kW
Electric Water Heater: Up to $400
Heat Pump Water Heater: up to $400
Refrigerator: $75
Freezer: $75
Refrigerator/Freezer Recycling: $75
ECM Furnace Motor: $100
Pool Pump Variable Speed Motor: $200
Air-Source Heat Pump Pool Heater: $400
Solar Panel Installation: $0.50/watt of installed solar, not to exceed $4,000
Load Management: Varies
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 Apple Valley
The cost and efficacy of solar panels often rely on the solar company that mounted them. Here are some key items to keep in mind while shopping for a solar provider.
Licensing and Training
To install a new photovoltaic system in Minnesota, a contractor must have an electricians' or electrical contractors' license from the Department of Labor and Industry, along with a residential building or remodeling contractors' license in some cases. If their work is regulated by the state's Mechanical Code, they must put up a $25,000 minimum bond with the Department of Labor and Industry. Solar installers can also obtain certificates from trade groups and standards organizations. The most respected 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 Apple Valley
The type of solar panels you select determines how much power you can produce. Monocrystalline panels and high-quality and cost more but give you the best performance. Polycrystalline panels work with a tried-and-true mechanism and cost less, but produce less power. Thin-film panels aren't the best for large residential installations, but they are excellent accessories for non-traditional roofs.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can increase your solar system's performance. Not all solar providers provide these extras, so look for a company that installs them if it's important for you.
You can plan to spend about $20,150 on average for a five-kilowatt solar energy system in Apple Valley. Check the table in this section to get an idea of what amount Apple Valley solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,252 |
Solar Polycrystalline | $976 |
Thin-Film | $571 |
Solar Battery | $801 |
Solar Home EV Charger | $3,004 |
Financing Solar Energy in Apple Valley
Solar companies 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 leases, solar loans, cash payments and power purchase agreements (PPAs). We recommend paying with cash 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 reduce 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 allow you to pay a monthly fee to rent your panels, while a PPA lets you pay a fluctuating rate based on only the energy you use. We generally don't recommend these options since you won't own your system and are disqualified from solar incentives, but they might be suitable in certain circumstances. Look for providers that offer two or more payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in Apple Valley.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Additional incentives may be available through local governments, usually in the form of rebates and special financing programs.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.3 years |
2 kW | 4.6 years |
5 kW | 11.6 years |
10 kW | 23.1 years |
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Frequently Asked Questions About Solar in Apple Valley
How much energy and money could I save per year by switching to solar?
How prevalent is solar energy in Apple Valley?
Should I anticipate a property value increase after adopting solar power?
Is installing solar panels a fast job?
What size should my new Apple Valley solar system be?
How long does it take to pay back a solar loan in Apple Valley?
What's the difference between a PPA and traditional financing?
You might look into a PPA if you don’t want to be responsible for maintenance and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any cost-saving solar incentives. Many solar experts don’t recommend PPAs. Our guide covers other payment options above.
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