Benefits of Solar Energy
Solar energy has numerous advantages that will enhance your home for years to come.
- Better energy independence: Photovoltaic systems with energy storage function through power outages and emergencies, and you won't have to depend on the electrical grid for your safety and well-being.
- Lowered energy bills: You can avoid the expensive cost of grid-tied power by producing some electricity right where you use it.
- Reduced carbon footprint: The sun is the universe's most abundant clean energy source, meaning you can minimize or conquer your home's dependence on "traditional" sources.
What Solar Incentives Are Available to Madison Homeowners?
Governments and utilities often reward homeowners for switching to solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Sales Tax IncentiveWebsite: revenue.wi.gov
100% exemption from sales and use tax for eligible purchases
Incentive Type: Rebate ProgramWebsite: focusonenergy.com
Solar PV: Residential - $200 per kW
Business - 0-5 kW: $200 per kW
5-10 kW: $1000 + $150 per kW over 5
10-100 kW: $1750 + $125 per kW over 10
100-300 kW: $13000 + $100 per kW over 100
300-500 kW: $33000 + $85 per kW over 300
Incentive Type: Property Tax Incentive
100% of the value added by an eligible renewable energy system
Incentive Type: Personal Tax CreditWebsite: ecowatch.com
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 Madison
The more thorough your company research is, the better your solar installation will ultimately perform. Consider each of these factors in your contractor search.
Licensing and Training
For solar thermal installations, Wisconsin requires a licensed HVAC contractor or plumber to be a part of the team if the work involves heating equipment or potable water. There are fewer restrictions for solar PV systems, but either your city government or the Wisconsin Division of Safety and Buildings may have to review building plans before you begin. Check a company's website for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar sector's most credible trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Madison
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power. 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 vehicle (EV) or use your solar power in cloudy weather, you can pay extra for add-ons. By choosing the right components, you can make your panel array more efficient and convenient to use. Not every solar provider offers these optional components, so look for a provider that sells them if it's crucial for you.
If you're a resident of Madison and are looking into a five-kilowatt solar energy system, you could expect to pay about $19,400 for parts and installation. Find more information on specific component and panel costs in the table.
|Solar Panel Cost
|Solar Home EV Charger
Financing Solar Energy in Madison
There are many ways to pay for a new solar system, and the right one will minimize your overhead. A few of the most common options include loans, cash payments, power purchase agreements (PPAs), and leases. Though it requires a large up-front payment, cash is the most cost-effective choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the runner-up option. As with a car loan or mortgage, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-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 will not have ownership of your system and are disqualified from solar incentives, but they might be suitable in specific circumstances. Ask each company you're vetting about the payment options it offers. A team member can help you determine the most suitable option for your pocketbook.
The table below lists the average payback periods for different capacities of solar systems in Madison.
You can claim a 26% federal 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
Ready to Get a Quote on Your Solar Project?
Frequently Asked Questions About Solar in Madison
How much energy and money could I save per year by switching to solar?
Is solar energy readily available in Madison?
Should I anticipate a property value increase after adopting solar power?
How many years will a standard solar system last?
How do I care for my new solar system?
What's the average solar system size in Madison?
What is "net metering," and how does it work?
Some states or power companies oblige you to join net metering when installing your solar system, while others give you a choice. Either way, once you sign up, you'll receive a bill credit or check for your excess generation at a retail or wholesale rate.
How many estimates should I get before making a final solar company decision?
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