Benefits of Solar Energy
Solar energy comes with multiple perks. Here are some highlights.
- Reduced carbon footprint: The sun is one of the universe's most abundant clean energy sources, meaning you can reduce or eliminate your home's dependence on fossil fuels.
- Better energy independence: Solar panel systems can keep your home powered through emergencies and blackouts. You can use your solar energy anytime with an optional battery backup system.
- Lowered energy bills: With solar panels, you produce power without paying the tacked-on costs of grid-connected power. Going off-grid can eliminate your bills completely. Plus, a significant number of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
What Solar Incentives Are Available to Provo Homeowners?
Utah homeowners who upgrade to solar could qualify for reimbursements, tax credits, special financing and rebates. Here are just a few of the region's incentive programs.
Incentive Type: Corporate Tax Credit
Website: energy.utah.govIncentive Amount:
Commercial wind, geothermal electric, and biomass systems 660 kW or greater, and solar PV systems 2 MW or greater: 0.35¢/kWh ($0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, solar PV, and biomass systems smaller than 600 kW: 10% of installed cost
Photovoltaic systems between 660 kW and 2 MW: May choose either 0.35¢/kWh ($0.0035/kWh) for 4 years or 10% of installed cost
Incentive Type: Personal Tax Credit
Website: energy.utah.govIncentive Amount:
Residential: 25%
Commercial wind, geothermal electric, and biomass systems 660 kW or greater 0.35¢/kWh ($0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, and biomass systems smaller than 660 kW: 10% of installed cost
Solar photovoltaic systems 2 MW or greater: 0.35¢/kWh ($0.0035/kWh) for 4 years
Solar photovoltaic systems smaller than 660 kW: 10% of installed costSolar photovoltaic systems between 660 kW and 2 MW: May choose either 0.35¢/kWh ($0.0035/kWh) for 4 years or 10% of installed cost
Incentive Type: Rebate Program
Website: wattsmarthomes.comIncentive Amount:
Ductless Heat Pumps: Up to $1,700
Electronically Commutated Motors: Up to $100
Evaporative Coolers: Up to $200
Heat Pumps: up to $750
Ground Source Heat Pumps: up to $2,500
Rooftop Heat Tape Timer: up to $100
Room Air Conditioners: Up to $20
Smart Thermostats: $50
Whole House Ventilation Fans: up to $125
Manufactured Homes Duct Sealing: Free service available
Manufactured Homes Ductless Heat Pumps: Up to $1,300
Lighting: Special pricing at certain retailers
Heat Pump Water Heaters: up to $550
Insulation: Up to $0.10/sq.ft
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 Provo
The purchase price and efficacy of solar panels often rely on the provider that installed them. Consider each of these aspects in your business search.
Licensing and Training
If a solar energy system in Utah won't hook up to a utility, the state exempts its installation from licensing requirements. For other jobs, solar contractors must hold license S202, a specialty certification from the Utah Division of Occupational and Professional Licensing. The license requires a 25-hour course to obtain. Solar installers can also pursue accreditations from standards organizations and trade groups. The most respected 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 Provo
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 generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
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 performance. Not all solar companies provide these add-ons, so look for a provider that sells them if it's a priority for you.
A majority of Provo homeowners choose solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $16,450 to install, considering both materials and labor. You can find more specific solar cost information in the table.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,276 |
Solar Polycrystalline | $996 |
Thin-Film | $582 |
Solar Battery | $817 |
Solar Home EV Charger | $3,063 |
Financing Solar Energy in Provo
Solar contractors offer multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are solar loans, power purchase agreements (PPAs), solar leases and cash payments. We recommend 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 own your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another good option if you don’t want to make a big initial investment. You can pay for your system in monthly installments while still enjoying energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases allow you to pay a monthly rate to rent your panels, while a PPA lets you pay a fluctuating 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 appropriate in particular circumstances. Ask each business you're considering about the financing options it offers. A representative can help you determine the most suitable option for your budget.
The table below lists the average payback periods for different capacities of solar systems in Provo.
The IRS allows you to claim a 26% federal solar tax credit on your new solar panels, so long as you purchase it before 2032. Local governments and utilities might also offer their own rebates, financing programs, and incentives that could save you more money.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.2 years |
2 kW | 4.4 years |
5 kW | 11.0 years |
10 kW | 21.9 years |
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Frequently Asked Questions About Solar in Provo
How much energy and money could I save per year by switching to solar?
Is solar energy widely available in Provo?
Will a solar PV system increase my Provo home worth?
Could I still use solar power if I live in a dark, rainy, or wooded area?
What can I do to assess my home's solar potential?
Is solar panel installation a quick job?
How does "net metering" work, and do I need to participate?
Should I get quotes from multiple Provo solar companies?
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