Benefits of Solar Energy
Solar energy provides several advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power reduces your dependence on conventional, less environmentally-friendly sources.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems work through blackouts and emergencies, and you won't have to depend on the power grid for your safety and comfort.
- Reduced energy costs: Generating 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 extra credits toward your energy bill.
What Solar Incentives Are Available to Philadelphia Homeowners?
Pennsylvania agencies and electric companies offer multiple solar incentives to help cut your solar system costs. Here is a breakdown of relevant solar programs where you live.
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: Rebate Program
Website: phila.legistar.comIncentive Amount:
Residential: $0.20 per watt of solar installed
Commercial: $0.10 per watt of solar installed
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: Green Building Incentive
Website: phila.govIncentive 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 Philadelphia
Choosing a company is the first step toward an effective and valuable solar array. Consider all of these aspects in your company 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. You should also visit a company's website to learn about its private certifications. Two of the most recognized are the Solar Heating Installer and PV Installation Professional certificates, awarded 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 Philadelphia
Your solar panels' style will impact how much energy you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home 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 system more effective and user-friendly. Not every solar contractor offers these extras, so look for a company that sells them if it's crucial for you.
If you're a resident of Philadelphia and want a five-kilowatt solar energy system, you could plan to spend about $17,750 for materials and labor. Find 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 Philadelphia
There are many 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. Most solar experts recommend a cash payment 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. Like a car or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) permits you to pay a monthly rate determined by the energy you use, as with an electric bill. We generally don’t recommend these two choices because you won't own the panels and cannot use solar incentives. Ask each provider you're evaluating about the payment options it offers. A team member 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 Philadelphia.
The IRS allows you to claim a 26% federal solar tax credit on the full cost of the solar system, so long as you purchase it before 2032. City and state governments 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 | 2.5 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 Philadelphia
How much energy and money could I save per year by switching to solar?
Is solar energy easily accessible in Philadelphia?
Will a solar PV system improve my Philadelphia home worth?
Is solar installation a quick job?
What upkeep do my solar panels need, and how often do they need it?
What is the average payback period for Philadelphia solar panels?
How can I boost my solar array's performance?
- optimize the panels' position with your solar installer
- regularly clean your solar panels
- upgrade to a more efficient inverter trim or cut down trees in the way of your panels
- use energy-efficient appliances
What is "net metering," and how does it work?
Some states or energy providers mandate you to participate in net metering when purchasing your solar system, while others give you a choice. Either way, once you join, you'll earn a check or bill credit for your excess generation at a retail or wholesale rate.
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