Benefits of Solar Energy
Solar energy provides multiple benefits. Here are some highlights.
- Better energy independence: Adding a solar battery storage system lets you have trustworthy energy during grid outages and storms.
- Lowered energy bills: You can skip the premium cost of grid-tied power by producing some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back to credit part of your bill.
- Reduced carbon footprint: Using clean solar power lowers your dependence on fossil fuels, which release greenhouse gases that damage the environment.
What Solar Incentives Are Available to Collierville Homeowners?
Governments and utility companies often reward homeowners for embracing solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Property Tax Incentive
Incentive Amount:
Depends upon sector
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 Collierville
Choosing a company is the first step toward an effective and cost-efficient solar energy system. Consider all of these criteria in your contractor search.
Licensing and Training
Tennessee requires any solar energy project valued at $25,000 or higher to be overseen by a licensed "prime contractor." The prime contractor is responsible for hiring licensed subcontractors as the project demands. Even if a project doesn't cross the $25,000 value threshold, you'll need an electrical journeyman or master electrician to pull permits. Solar providers can also pursue certificates from standards organizations and trade groups. The top ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Collierville
Your solar modules' model will influence 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.
Additional accessories, such as electric vehicle (EV) chargers and battery storage, will raise your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar provider offers these extras, so look for a provider that sells them if it's important for you.
If you're a resident of Collierville and want a five-kilowatt solar energy system, you could expect to pay about $17,900 for materials and labor. Find more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,138 |
| Solar Polycrystalline | $888 |
| Thin-Film | $519 |
| Solar Battery | $728 |
| Solar Home EV Charger | $2,732 |
Financing Solar Energy in Collierville
There are numerous ways to pay for a solar energy system, and the right one will lower your costs. A few of the most common options include loans, leases, power purchase agreements (PPAs), and cash payments. Though it requires a large up-front payment, cash is the most cost-effective choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the second most effective option. As with a car or home loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for valuable solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to pay a monthly rate to rent your panels, while a power purchase agreement lets you pay a variable rate based on only the energy you use. We generally don't recommend these options since you won't own your system and are disqualified from solar incentives, but they might be suitable in specific circumstances. We recommend working with a contractor that offers multiple financing options. Talk to each agent about what's available, and acquire more than one estimate for the best odds of keeping within your financial plan.
The table below lists the average payback periods for different capacities of solar systems in Collierville.
You are eligible for a 26% federal solar tax credit for new solar energy equipment until the year 2032. City and state officials and utility companies might also offer discounts, rebates, and specialized financing options that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.4 years |
| 2 kW | 4.8 years |
| 5 kW | 12.1 years |
| 10 kW | 24.1 years |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Collierville
How much money could I save by going solar in Collierville?
Is solar energy readily available in Collierville?
Should I expect a boost in my property value after adopting solar power?
What if I live in a rainy or gloomy
Is installing solar panels a fast job?
How long does it take to pay back a solar loan in Collierville?
How does "net metering" work, and do I need to participate?
Some states or power companies oblige you to join net metering when purchasing your solar system, while others give you a choice. Either way, once you participate, you'll receive a bill credit or check for your excess generation at a wholesale or retail rate.
How are a solar lease and PPA different?
If you choose a lease, you'll make set payments each month.
With both leases and PPAs, you do not own your panels and lose eligibility for some incentives. Further, you'll have to "buy out" or transfer the contract if you sell your home during the term.
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
