Benefits of Solar Energy
Solar energy has several advantages that will enhance your home for years to come.
- Lower energy bills: Producing some or all of your own power will save you money on your electric bills long-term. Plus, some states provide net metering programs that allow you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
- Reduced carbon footprint: The sun is the universe's most abundant clean energy source, meaning you can minimize or conquer your home's dependence on non-renewable sources.
- Better energy independence: Adding a battery storage system lets you have trustworthy energy during grid outages and storms.
What Solar Incentives Are Available to Northampton Homeowners?
Governments and power companies often incentivize homeowners for adopting solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
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 Northampton
The price and efficacy of solar panels often rely on which company mounted them. Make your choice based on the following crucial aspects.
Licensing and Training
The Commonwealth of Pennsylvania does not issue state-level contracting licenses, so each city or county can set its own requirements and regulations. Check for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among 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 Northampton
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.
Additional system add-ons, such as electric vehicle (EV) chargers and battery storage, will increase your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar companies offer these add-ons, so look for a company that installs them if it's a priority for you.
If you're a resident of Northampton and are looking into a five-kilowatt solar energy system, you could plan to spend about $17,750 for parts and installation. Find more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,134 |
| Solar Polycrystalline | $884 |
| Thin-Film | $517 |
| Solar Battery | $725 |
| Solar Home EV Charger | $2,721 |
Financing Solar Energy in Northampton
There are a plethora of 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, loans, power purchase agreements (PPAs), and leases. Most solar experts recommend paying cash or using a solar loan. Cash payments demand 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 an auto or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases allow you to use your panels for a set monthly rate, while PPAs let you pay only for the energy you use, similar to an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Look for contractors that offer multiple 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 Northampton.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Additional 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 Northampton
How much money could I save by going solar in Northampton?
Is solar energy easily accessible in Northampton?
Should I anticipate a boost in my property value after installing solar panels?
How can I determine my home's solar feasibility?
Is solar panel installation a quick job?
How long does it take to pay back a solar loan in Northampton?
What are some "red flags" to watch for as I research companies?
- High-pressure sales tactics
- Not being straightforward about credentials and training, references, cost and warranties
- "One-size-fits-all" approach
- Not thoroughly inspecting your site
- No business filing with your local secretary of state
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