Benefits of Solar Energy
Solar energy provides multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Lowered energy bills: You can dodge the expensive cost of grid-tied power by generating some electricity right where you use it. Plus, many states provide net metering which can allow you to sell your unused energy back to credit part of your bill.
- 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 power grid for your safety and well-being.
What Solar Incentives Are Available to Cheltenham Homeowners?
Pennsylvania homeowners who upgrade to solar could qualify for reimbursements, rebates, special financing and tax credits. Here are just a few of the local incentive programs.
Incentive Type: Loan Program
Website: newpa.comIncentive Amount:
Residential loans/loan guarantees: $100,000
Commercial loans/loan guarantees: $2 million
Grants: Lesser of 10% of project costs or $500,000
Incentive Type: Loan Program
Website: newpa.comIncentive Amount:
Manufacturer loans: $40,000 per job created within 3 years
Manufacturer grants: $5,000 per job created within 3 years
Loans for geothermal systems: $3 per square foot of space served up to $5 million; also limited to 50% of eligible costs for residential systems.
Loans for wind energy production projects: $5 million
Grants for wind energy production projects: $1 million
Grants for feasibility studies: 50% of cost up to $175,000
Loan guarantee grants: Up to 75% of deficient funds up to $5 million
Incentive Type: Solar Renewable Energy Credit Program
Website: pennaeps.comIncentive Amount:
Varies based on market conditions; during 2015 the market price for PA-sourced SRECs has ranged from approximately $32 - $55/MWh ($0.032 - $0.055/kWh) although individual trades have taken place at substantially lower and higher prices.
Incentive Type: Grant Program
Website: newpa.comIncentive Amount:
Vary by project, but program generally requires matching funds at least equivalent to DCED funding
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 Cheltenham
Choosing a company is the first step toward an effective and cost-efficient solar array. Consider all of these elements in your business search.
Licensing and Training
There are no state-level contracting licenses issued in the Commonwealth of Pennsylvania, so each city or county can set its own requirements and terms. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar sector's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Cheltenham
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.
If you need to charge an electric car or use your solar power in cloudy weather, you can pay extra for accessories. By selecting the right components, you can make your system more efficient and user-friendly. Not all solar providers include these additional features, so look for a company that sells them if it's important for you.
If you're a resident of Cheltenham and want a five-kilowatt solar energy system, you could expect to pay about $17,750 for parts and installation. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,161 |
| Solar Polycrystalline | $906 |
| Thin-Film | $530 |
| Solar Battery | $743 |
| Solar Home EV Charger | $2,787 |
Financing Solar Energy in Cheltenham
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 cash payments, solar loans, solar leases and power purchase agreements (PPAs). Most solar experts recommend a cash payment or using a solar loan. Cash payments demand 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. Like a home or auto loan, you'll pay a set monthly rate with potentially $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) enables you to pay a monthly rate based only on the energy you use, similar to an electric bill. We typically don’t recommend these two choices because you won't own the system and are disqualified from using solar incentives. Ask each company you're considering about the financing options it offers. A salesperson can help you determine the optimal option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Cheltenham.
A 26% federal solar tax credit applies to new residential solar equipment purchased through 2032. Further 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 | 2.5 years |
| 2 kW | 5.0 years |
| 5 kW | 12.5 years |
| 10 kW | 25.0 years |
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Frequently Asked Questions About Solar in Cheltenham
How much money could I save by going solar in Cheltenham?
Is solar energy easily accessible in Cheltenham?
Will a solar PV system improve my Cheltenham home value?
What if I live in a heavily-wooded or rainy
How many years will a typical solar system last?
What is the average payback period for Cheltenham solar panels?
What's the difference between a PPA and a solar lease?
You don't own the panels with either option, though you can choose to opt out of the contract for a fee.
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from the government, specialty lenders, installer and local banks. You'll need to pass a credit check to qualify for most of them. While the upfront costs are more expensive, and you'll be responsible for upkeep, you'll also have complete ownership and can apply for many more benefits.
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