Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Lower utility costs: 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 make it possible for you to sell your surplus energy back to the grid, generating additional credits toward your energy bill.
- Reduced carbon footprint: Using solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
- Better energy independence: Adding a solar battery storage system lets you have reliable energy during grid outages and storms.
What Solar Incentives Are Available to Memphis Homeowners?
Governments and power companies often incentivize homeowners for switching to 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 Memphis
The purchase price and efficiency of solar panels often depend on the provider that installed them. Here are some crucial criteria to bear in mind while searching for a solar company.
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 will still need an electrical journeyman or master electrician to handle permit work. You should also visit a company's website to learn about its private accreditations. 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 Memphis
Your solar panels' style will impact how much electricity you can produce. 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 have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can boost your solar system's performance. Not every solar contractor provides these extras, so look for a provider that sells them if it's important for you.
Most Memphis homeowners choose solar systems designed for five kilowatts (kW) of electrical capacity. These systems cost about $17,900 to install, considering both materials and labor. You can see more specific solar cost information 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 Memphis
There are numerous ways to pay for a new solar system, and the right one will reduce your expenses. A few of the most common options include loans, cash payments, leases, and power purchase agreements (PPAs). Most solar experts recommend a cash payment or using a solar loan. Cash payments demand 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. Similar to a car or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases let you use your panels for a fixed monthly rate, while PPAs let you pay just for the energy you use, much like an electric bill. Both options disqualify you for solar incentives and do not provide you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Ask each installer you're evaluating about the payment options it offers. A salesperson can help you determine the optimal option for your budget.
The table below lists the average payback periods for different capacities of solar systems in Memphis.
A 26% federal solar tax credit applies to new home solar systems purchased through 2032. Further incentives may be available through local governments, usually in the form of rebates and special financing programs.
| 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 Memphis
How much money could I save by going solar in Memphis?
How widespread is solar energy in Memphis?
Should I anticipate a property value increase after going solar?
What if I live in a rainy or dark
What upkeep do my solar panels need, and how often do they need it?
How long does it take to pay back a solar loan in Memphis?
How are traditional solar loans and PPAs different?
You might look into a PPA if you don’t want to be responsible for maintenance and don’t want to invest in a system, but keep in mind you won’t be paying toward ownership or be able to access any cost-saving solar incentives. Many solar experts don’t recommend PPAs. Our guide covers other payment options above.
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