Benefits of Solar Energy
Solar energy provides multiple benefits. Here are some highlights.
- Lower utility costs: Sourcing some or all of your own electricity will save you money on your electric bills long-term. Plus, some states provide net metering programs that make it possible for you to sell your unused energy back to the grid, generating extra credits toward your energy bill.
- Better energy independence: Adding a solar battery storage system lets you have trustworthy energy during grid outages and storms.
- Reduced carbon footprint: Solar is a highly abundant clean energy source, meaning you can lower or beat your home's dependence on fossil fuels.
What Solar Incentives Are Available to Blaine Homeowners?
Minnesota homeowners who upgrade to solar could qualify for rebates, reimbursements, special financing and tax credits. Here are just a few of the area's incentive programs.
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: connexusenergy.comIncentive Amount:
EV Charger Installation: $500
Wi-Fi Thermostat: $125
Honeywell Wi-Fi Thermostat: Free, with enrollment in PowerNap Wi-Fi Air Conditioning program
Load Control: Varies
Peak-Time Rebate: $1/kWh saved
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: 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 Blaine
Choosing a company is the first step toward an effective and valuable solar energy system. Make your choice based on the following important considerations.
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 carry a $25,000 minimum bond with the Department of Labor and Industry. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Blaine
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 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.
If you need to charge an electric vehicle (EV) or use your solar power in inclement weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more productive and user-friendly. Not every solar provider provides these extras, so look for a company that installs them if it's crucial for you.
A majority of Blaine homeowners choose solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $20,150 to install, considering both parts and installation. You can see more specific solar cost information in the table.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,121 |
Solar Polycrystalline | $875 |
Thin-Film | $511 |
Solar Battery | $718 |
Solar Home EV Charger | $2,691 |
Financing Solar Energy in Blaine
Solar installers 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 loans, power purchase agreements (PPAs), solar leases and cash payments. Though it involves a large up-front payment, cash is the most affordable choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the second most effective option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for valuable solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases let you rent 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. Look for installers that offer multiple payment plans to find the right fit for your pocket.
The table below lists the average payback periods for different capacities of solar systems in Blaine.
A 26% federal solar tax credit applies to new residential solar equipment purchased through 2032. Additional 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 | 2.3 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 Blaine
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