Benefits of Solar Energy
Solar energy offers numerous advantages that will enhance your home for years to come.
- 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 non-renewable sources.
- Lowered energy bills: You can dodge the premium cost of grid-tied power by producing some electricity at home. Plus, many states offer net metering which can allow you to sell your unused energy back to credit part of your bill.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems operate through blackouts and emergencies, and you won't have to rely on your power company for your safety and well-being.
What Solar Incentives Are Available to Racine Homeowners?
Governments and utility companies often incentivize homeowners for embracing solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Sales Tax Incentive
Website: revenue.wi.govIncentive Amount:
100% exemption from sales and use tax for eligible purchases
Incentive Type: Rebate Program
Website: focusonenergy.comIncentive Amount:
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
Incentive Amount:
100% of the value added by an eligible renewable energy system
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 Racine
Choosing a company is the first step toward a well-oiled and cost-efficient solar energy system. Consider each of these criteria in your contractor search.
Licensing and Training
For solar thermal installations, Wisconsin requires a licensed HVAC contractor or plumber to be the crew if the work involves heating equipment or potable water. There are fewer restrictions for solar PV systems, but either the Wisconsin Division of Safety and Buildings or your city government may have to review building plans before you begin. You should also visit a company's website to learn about its private accreditations. Two of the most prestigious are the Solar Heating Installer and PV Installation Professional certificates, backed 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 Racine
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options 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 boost your solar system's performance. Not all solar contractors offer these optional components, so look for a provider that installs them if it's essential for you.
If you're a resident of Racine and are looking into a five-kilowatt solar energy system, you could plan to spend about $19,400 for materials and labor. See more information on specific component and solar panel costs in the table.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,104 |
Solar Polycrystalline | $861 |
Thin-Film | $503 |
Solar Battery | $706 |
Solar Home EV Charger | $2,649 |
Financing Solar Energy in Racine
There are a plethora of ways to pay for a new solar system, and the right one will minimize your overhead. A few of the most common options include cash payments, leases, power purchase agreements (PPAs), and loans. 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 own your system and can apply for solar panel incentives to minimize 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 installments while still benefiting from energy bill savings and solar incentives. However, you’ll pay more in total due to accruing interest. Solar leases allow you to use your panels for a fixed monthly rate, while PPAs let you pay just for the energy you use, similar to an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. We recommend working with a company that offers multiple financing options. Ask each agent about what's available, and get more than one estimate for the best odds of keeping within your financial plan.
The table below lists the average payback periods for different capacities of solar systems in Racine.
The IRS allows you to claim a 26% federal tax credit for solar panels on the full cost of the solar system, so long as you purchase it before 2032. Local governments and utilities might also offer their own incentives, rebates, and financing programs that could save you more money.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.0 years |
2 kW | 4.0 years |
5 kW | 10.0 years |
10 kW | 20.0 years |
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Frequently Asked Questions About Solar in Racine
How much energy and money could I save per year by switching to solar?
How popular is solar energy in Racine?
Should I expect a property value increase after switching to solar energy?
How long is a Racine solar panel's average lifespan?
What upkeep do my solar panels need, and how often do they need it?
What size should my new Racine solar system be?
How can I enhance my solar panels' 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
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