Benefits of Solar Energy
Solar energy offers numerous advantages that will enhance your home for years to come.
- Reduced carbon footprint: Embracing solar is a surefire way to lower your carbon footprint and home fossil fuel dependency.
- Better energy independence: Solar energy can keep your home powered through emergencies and blackouts. You can use your solar energy anytime with optional battery backup.
- Lowered energy bills: Solar panels let you generate your own energy to power your home, lowering your periodic electricity costs. You can eliminate your bills completely if you go off-grid. 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.
What Solar Incentives Are Available to Raleigh Homeowners?
Governments and utilities often incentivize homeowners for going solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
Incentive Type: Rebate Program
Website: duke-energy.comIncentive Amount:
Residential: $0.60/W-AC
Nonresidential: $0.50/W-AC
Nonprofit: $0.75/W-AC
Incentive Type: Property Tax Incentive
Incentive Amount:
Residential systems: 100% of the appraised value
All other systems: 80% of the appraised value
Incentive Type: Property Tax Incentive
Incentive Amount:
No more than conventional equipment
Incentive Type: Rebate Program
Website: energyunited.comIncentive Amount:
Heat Pumps (15 SEER): $150/unit
Heat Pumps (16 SEER): $300/unit
Incentive Type: Rebate Program
Website: duke-energy.comIncentive Amount:
Central Air Conditioning or Heat Pump: $300 - $400 + $50 with added smart thermostat
Geothermal Heat Pump: $400 + $50 with added smart thermostat
Heat Pump Water Heater: $350
Attic Insulation or Attic Air Sealing: $250
Duct Sealing: $100
Variable-Speed Pool Pumps: $300
Incentive Type: Performance-Based Incentive
Website: ncgreenpower.orgIncentive Amount:
Varies by technology and system size
PV larger than 5 kW: must enter bid process
Wind up to 10 kW: $0.09/kWh
Wind larger than 10 kW: must enter bid process
Incentive Type: Loan Program
Incentive Type: Green Building Incentive
Incentive Amount:
Authorized by legislation for green buildings. Actual permit process to be determined by local government.
Incentive Type: Rebate Program
Website: duke-energy.comIncentive Amount:
Central A/C or Heat Pump: $300 - $400 + 50 with smart thermostat
Geothermal Heat Pumps: $400 + 50 with smart thermostat
Heat Pump Water Heater: $350
Attic Insulation & Air Sealing: $250
Duct Sealing: $100
Pool Pump: $300
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 Raleigh
Choosing a company is the first step toward a well-oiled and valuable solar array. Make your choice based on the following key factors.
Licensing and Training
A licensed electrical contractor in North Carolina may supervise home solar photovoltaic installations in North Carolina if they have the pertinent classification from the North Carolina State Board of Examiners of Electrical Contractors. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar sector's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Raleigh
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 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.
If you'd like to charge an electric vehicle (EV) or use your solar power in dark weather, you can pay extra for add-ons. By choosing the right components, you can make your panel array more efficient and convenient to use. Not all solar providers offer these extras, so look for a company that installs them if it's crucial for you.
Generally speaking, it costs about $17,550 for a five-kilowatt solar array in Raleigh. This table lists more specific costs for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,155 |
| Solar Polycrystalline | $901 |
| Thin-Film | $527 |
| Solar Battery | $739 |
| Solar Home EV Charger | $2,772 |
Financing Solar Energy in Raleigh
There are numerous ways to pay for new solar panels, and the right one will reduce your expenses. A few of the most common options include loans, power purchase agreements (PPAs), leases, and cash payments. Though it involves 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 runner-up 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 involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate determined by the energy you use, akin to an electric bill. We generally don’t recommend these two options because you won't own the system and cannot use solar incentives. Look for companies that offer two or more payment plans to find the right fit for your budget.
The table below lists the average payback periods for different capacities of solar systems in Raleigh.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, utilities and local governments 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 | 4.2 years |
| 5 kW | 10.4 years |
| 10 kW | 20.8 years |
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Frequently Asked Questions About Solar in Raleigh
How much money could I save by going solar in Raleigh?
How popular is solar energy in Raleigh?
Should I expect a property value increase after adopting solar power?
What if I live in a gloomy or rainy
How long does an average solar system last?
How long does the solar panel installation process require?
What are some "red flags" to watch for as I research companies?
- Pushy sales approach
- Being evasive about training and credentials, references, cost and warranties
- "One-size-fits-all" approach
- Rushing through the site assessment
- No references or testimonials
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from the government, specialty lenders, local banks and installer. 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 taking care of the system, you'll also have full ownership rights and can apply for many more incentives.
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