Benefits of Solar Energy
Solar energy has several advantages that will enhance your home for years to come.
- Smaller power bills: Sourcing some or all of your own energy 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 extra energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Solar panel systems with battery storage systems function through blackouts and emergencies, and you won't have to depend on the power grid for your safety and comfort.
- 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 Richmond Homeowners?
Virginia's public agencies and power companies offer numerous solar incentives to help offset your solar system costs. Here is a breakdown of eligible solar programs where you live.
Incentive Type: Personal Tax Deduction
Incentive Amount:
20% of the sales tax paid by an individual
Incentive Type: Property Tax Incentive
Website: law.lis.virginia.govIncentive Amount:
Depends on the local governing body
Incentive Type: Property Tax Incentive
Website: dmme.virginia.govIncentive Amount:
Varies (local option)
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 Richmond
The more informed your company research is, the better your solar panels will ultimately work. Consider each of these criteria in your company search.
Licensing and Training
Since 2012, the Virginia Department of Professional and Occupational Regulation has issued Alternative Energy Systems (AES) licenses to contractors who install solar photovoltaic systems. A contractor with an AES license may need to subcontract plumbing, HVAC or electrical work. Check for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), among the solar industry's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Richmond
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.
If you want to charge an electric car or use your solar power in dark weather, you can pay extra for accessories. By selecting the right components, you can make your panel array more effective and convenient to use. Not all solar providers provide these additional features, so look for a contractor that installs them if it's essential for you.
If you're a resident of Richmond and are considering getting a five-kilowatt solar energy system, you could plan to spend about $17,950 for parts and installation. See more information on specific component and solar panel costs in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,072 |
| Solar Polycrystalline | $836 |
| Thin-Film | $489 |
| Solar Battery | $686 |
| Solar Home EV Charger | $2,572 |
Financing Solar Energy in Richmond
Choosing the optimal financing option will impact your overall solar system cost and expected savings. Common payment options include loans, cash payments, power purchase agreements, and leases. Though it involves a large up-front payment, cash is the most affordable 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 cost-saving 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 PPA 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 particular circumstances. Ask each installer you're considering about the payment options it offers. A team member can help you determine the optimal option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Richmond.
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 rebates, discounts, and dedicated financing plans that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.3 years |
| 2 kW | 4.6 years |
| 5 kW | 11.6 years |
| 10 kW | 23.2 years |
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Frequently Asked Questions About Solar in Richmond
How much money could I save by going solar in Richmond?
How popular is solar energy in Richmond?
Will a solar PV system improve my Richmond home worth?
Could I still use solar power if I live in a dark, wooded, or rainy area?
How long does the solar panel installation process last?
What size should my new Richmond solar system be?
How can I boost my solar array's performance?
- optimize the panels' position with your solar installer
- regularly clean your solar panels
- upgrade to a more efficient inverter trim or cut down trees in the way of your panels
- use energy-efficient appliances
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
