Benefits of Solar Energy
Solar energy has numerous advantages that will enhance your home for years to come.
- Reduced carbon footprint: Solar is the universe's most abundant clean energy source, meaning you can reduce or eliminate your home's dependence on "traditional" sources.
- Better energy independence: Adding a battery storage system lets you have reliable energy during storms and grid outages.
- Lowered energy bills: With a solar array, you produce power without paying the tacked-on costs of grid-tied power. 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 Lancaster Homeowners?
The state of Ohio offers a number of solar incentives to help cut your solar system costs. Check out a breakdown of available solar programs where you live.
Incentive Type: Loan Program
Website: hamiltoncountyohio.govIncentive Amount:
$50,000
Incentive Type: PACE Financing
Incentive Amount:
Low-interest, 30-year loan
Incentive Type: Loan Program
Website: tos.ohio.govIncentive Amount:
Rate reduction available for up to $50,000 and 7 years of the bank loan
Incentive Type: Solar Renewable Energy Credit Program
Website: puco.ohio.govIncentive Amount:
SREC prices vary based on market conditions
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 Lancaster
Choosing a company is the first step toward an effective and valuable solar system. Here are some key items to consider while searching for a solar specialist.
Licensing and Training
Ohio may require a solar installer to hold a state contractors' license, but only for commercial work. For residential work, cities can establish their own licensing or regulatory requirements. You should also visit a company's website to learn about its private certifications. Two of the most recognized are the PV Installation Professional and Solar Heating Installer certificates, backed by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Cost of Solar Panels in Lancaster
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 battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can enhance your solar system's efficiency. Not all solar companies provide these additional features, so look for a company that sells them if it's crucial for you.
If you're a resident of Lancaster and are looking into a five-kilowatt solar energy system, you could expect to pay about $17,050 for parts and installation. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,098 |
| Solar Polycrystalline | $857 |
| Thin-Film | $501 |
| Solar Battery | $703 |
| Solar Home EV Charger | $2,636 |
Financing Solar Energy in Lancaster
There are various ways to pay for a solar energy system, and the right one will minimize your overhead. A few of the most common options include leases, cash payments, loans, and power purchase agreements (PPAs). Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they help you avoid 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. Much like an auto or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases let you use your panels for a set monthly rate, while PPAs let you pay just for the energy you use, similar to an electric bill. Both options disqualify you for solar incentives and do not provide 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 options it offers. A representative can help you determine the most suitable option for your pocketbook.
The table below lists the average payback periods for different capacities of solar systems in Lancaster.
The IRS allows you to claim a 26% federal solar tax credit on total system costs, so long as you purchase it before 2032. Municipal authorities and utilities might also offer their own incentives, rebates, and financing programs that could save you more money.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.6 years |
| 2 kW | 5.2 years |
| 5 kW | 13.1 years |
| 10 kW | 26.2 years |
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Frequently Asked Questions About Solar in Lancaster
How much money could I save by going solar in Lancaster?
Is solar energy common in Lancaster?
Should I anticipate a boost in my property value after installing solar panels?
Is installing solar panels a fast job?
How do I care for my new solar system?
What is the average payback period for Lancaster solar panels?
What are some "red flags" to watch for as I research companies?
- High-pressure sales tactics
- Not being straightforward about references, credentials and training, cost and warranties
- Limited or no customization
- Rushing through the site assessment
- No business filing with your local secretary of state
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