Benefits of Solar Energy
Solar energy comes with multiple advantages. Here are some highlights.
- Reduced energy costs: Generating some or all of your own electricity will spend less on electricity long-term. Plus, some states provide net metering programs that enable you to sell your surplus energy back to the grid, generating extra credits toward your energy bill.
- Reduced carbon footprint: Using clean solar power reduces your dependence on conventional, less environmentally-friendly sources.
- Better energy independence: Adding a battery storage system lets you have dependable energy during storms and grid outages.
What Solar Incentives Are Available to Nashville Homeowners?
Tennessee agencies and electric companies offer numerous solar incentives to help reduce your solar system costs. Below is a breakdown of relevant 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 Nashville
The cost and efficacy of solar panels often depend on which company mounted them. Make your choice based on the following crucial aspects.
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 installers can also pursue certifications from trade groups and standards organizations. The top 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 Nashville
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 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.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can improve your solar system's efficiency. Not all solar providers offer these extras, so look for a contractor that sells them if it's a priority for you.
A majority of Nashville homeowners opt for solar systems designed for five kilowatts (kW) of electrical capacity. These systems run about $17,900 to set up, considering both parts and installation. You can see more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,144 |
| Solar Polycrystalline | $892 |
| Thin-Film | $521 |
| Solar Battery | $732 |
| Solar Home EV Charger | $2,745 |
Financing Solar Energy in Nashville
Solar providers offer multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are power purchase agreements (PPAs), cash payments, solar loans and solar leases. We advise paying with cash or securing a solar loan for the best return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also have full ownership of your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in installments while still enjoying energy bill savings and solar incentives. However, you’ll pay more in total due to accruing interest. Solar leases allow you to pay a monthly fee 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 certain circumstances. Look for installers that offer multiple payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in Nashville.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, local governments and utilities may have their own rebates and financing plans that could reduce your total cost even 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 |
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Frequently Asked Questions About Solar in Nashville
How much energy and money could I save per year by switching to solar?
Is solar energy common in Nashville?
Will a solar PV system improve my Nashville home value?
What's a Nashville solar panel's average lifespan?
Is installing solar panels a quick job?
How long does it take to pay back a solar loan in Nashville?
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from installer, local banks, specialty lenders 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 total ownership and can apply for many more financial rewards.
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