Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Utilizing solar is a surefire way to minimize your carbon footprint and home fossil fuel dependency.
- Lowered energy bills: With solar energy systems, you generate power without paying the tacked-on costs of grid-connected power. Going off-grid can eliminate your bills completely. Plus, a significant amount of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
- Better energy independence: Adding a battery backup or storage system lets you have trustworthy energy during grid outages and storms.
What Solar Incentives Are Available to Eagan Homeowners?
Minnesota agencies and electric companies offer a range of solar incentives to help minimize your solar system costs. Below is a breakdown of eligible solar programs where you live.
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: 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 Eagan
Choosing a company is the first step toward an effective and valuable solar array. Here are some crucial criteria to bear in mind while searching for a solar installer.
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 have 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 trusted trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Eagan
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 provide a lower price point but produce less power. 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.
You can also add electric car (EV) chargers and battery backup systems. These will increase your total installation cost, but they can improve your solar system's performance. Not all solar providers include these additional features, so look for a provider that installs them if it's important for you.
Most Eagan homeowners choose solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $20,150 to set up, considering both materials and labor. You can find more specific solar cost information in the table.
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 Eagan
There are many ways to pay for new solar panels, and the right one will minimize your overhead. A few of the most common options include cash payments, leases, loans, and power purchase agreements (PPAs). Most solar experts recommend a cash payment 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. Similar to a car or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a power purchase agreement lets you pay a fluctuating 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 appropriate in particular circumstances. Look for providers 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 Eagan.
You are eligible for a 26% federal solar tax credit for new solar power systems until the year 2032. City and state officials and utility companies might also offer discounts, rebates, and specialized financing options that could save you more.
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 Eagan
How much money could I save by going solar in Eagan?
How popular is solar energy in Eagan?
Will solar panels boost my Eagan home price?
How do I care for my new solar system?
What's the average solar system size in Eagan?
How long does it take to pay back a solar loan in Eagan?
How are a solar lease and PPA different?
You don't own the panels with either option, though you can choose to "buy out" of the contract for a fee.
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from installer, local banks, the government and specialty lenders. You'll need to pass a credit check to qualify for most of them. While the upfront costs are greater, and you'll be responsible for maintenance, you'll also have complete ownership and can apply for many more benefits.
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