Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Lowered energy bills: You can avoid the added cost of grid-tied power by creating some electricity at home. Plus, many states provide net metering which can allow you to sell your unused energy back to help pay for your energy bill.
- Better energy independence: Solar panel systems can keep your home functioning through blackouts and emergencies. You can use your solar energy anytime with an optional battery storage system.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can reduce or eliminate your home's dependence on fossil fuels.
What Solar Incentives Are Available to Knoxville Homeowners?
Tennessee agencies and electric companies offer several solar incentives to help offset your solar system costs. Here's a breakdown of eligible solar programs where you live.
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 Knoxville
The more informed your provider search is, the better your solar installation will ultimately perform. Consider each of these elements in your business 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 required. Even if a project doesn't cross the $25,000 value threshold, you will still need a master electrician or electrical journeyman to handle permit work. Solar companies can also earn accreditations from trade groups and standards organizations. The most respected ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Knoxville
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels produce less power, but start at a more budget-friendly price point. 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.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can enhance your solar system's performance. Not every solar contractor offers these add-ons, so look for a company that sells them if it's essential for you.
If you're a resident of Knoxville and are considering getting a five-kilowatt solar energy system, you could expect to pay about $17,900 for materials and labor. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,124 |
| Solar Polycrystalline | $877 |
| Thin-Film | $513 |
| Solar Battery | $719 |
| Solar Home EV Charger | $2,697 |
Financing Solar Energy in Knoxville
There are many ways to pay for new solar panels, and the right one will minimize your overhead. A few of the most common options include power purchase agreements (PPAs), cash payments, leases, and loans. Though it requires a large up-front payment, cash is the most economical choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the next best option. As with a home or auto 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 fee to rent your panels, while a power purchase agreement lets you pay a fluctuating rate based on only the energy you use. We generally don't recommend these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be appropriate in certain circumstances. We advise working with a company that offers multiple financing options. Talk to each representative about what's available, and secure 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 Knoxville.
The IRS allows you to claim a 26% federal tax credit for solar panels on your new solar panels, so long as you purchase it before 2032. City and state governments and utilities might also offer their own financing programs, rebates, and incentives that could save you more money.
| 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 |
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Frequently Asked Questions About Solar in Knoxville
How much energy and money could I save per year by switching to solar?
Is solar energy readily available in Knoxville?
Should I anticipate a property value increase after going solar?
What can I do to predict my home's solar viability?
Is solar panel installation a quick job?
What size should my new Knoxville solar system be?
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from installer, specialty lenders, local banks and the government. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for maintenance, you'll also have full ownership rights and can apply for many more incentives.
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