Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Lower energy bills: Generating some or all of your own power will save you money on your electric bills long-term. Plus, some states offer net metering programs that enable you to sell your unused energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Solar energy can keep your home running through blackouts and emergencies. You can use your solar energy anytime with an optional battery storage system.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
What Solar Incentives Are Available to Lancaster Homeowners?
Pennsylvania homeowners who choose solar could qualify for special financing, reimbursements, rebates 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 Lancaster
The cost and efficiency of solar panels often hinge on the solar company that installed them. Consider each of these criteria in your contractor 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 regulations. Look 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 Lancaster
Your photovoltaic panels' model will impact how much power you can generate. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
If you'd like to charge an electric vehicle (EV) or use your solar power in cloudy weather, you can pay extra for add-ons. By choosing the right components, you can make your panel array more effective and user-friendly. Not every solar contractor includes these extras, so look for a provider that installs them if it's a priority for you.
Most Lancaster homeowners choose solar systems sized for five kilowatts (kW) of electrical capacity. These systems cost about $17,750 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 | $1,145 |
Solar Polycrystalline | $893 |
Thin-Film | $522 |
Solar Battery | $733 |
Solar Home EV Charger | $2,749 |
Financing Solar Energy in Lancaster
There are a plethora of ways to pay for a solar energy system, and the right one will help you decrease overhead. A few of the most common options include power purchase agreements (PPAs), cash payments, leases, and loans. We advise paying with cash or using a solar loan for the best return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also have full ownership of your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another good option if you don’t want to make a big initial investment. You can pay for your system in installments while still benefiting from energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) permits you to pay a monthly rate based only on the energy you use, like an electric bill. We typically don’t recommend these two choices because you won't own the system and cannot use solar incentives. We suggest working with a company that offers multiple financing options. Ask each representative about what's available, and secure more than one estimate for the best odds of staying within your financial plan.
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. Local governments and utilities might also offer their own rebates, financing programs, and incentives that could save you more money.
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 Lancaster
How much money could I save by going solar in Lancaster?
Is solar energy common in Lancaster?
Will solar energy systems raise my Lancaster home worth?
How can I assess my property's solar potential?
What's the average solar system size in Lancaster?
How long does it take to pay back a solar loan in Lancaster?
How does "net metering" work, and do I need to participate?
Some states or power companies mandate you to join net metering when purchasing your solar system, while others give you a choice. Either way, once you sign up, you'll earn a bill credit or check for your excess generation at a wholesale or retail rate.
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