Solar is the home improvement project that pays for itself
Nobody gets excited when it comes time to pay the monthly bills, and as we enter into the colder months, you are likely to notice an increase in your energy payments. Unrelenting bills from your utility provider can be especially frustrating since there is seemingly no end in sight. However, with solar panels, this frustration doesn’t have to be around for much longer.
Solar panels have been around for decades, but only in recent years have they become widely available to the general public. With growing popularity, people are making the investment of installing solar on their property, both for the cost and environmental benefits.
Solar Pays for Itself as it Powers a Property
A solar installation is one of the few home improvements that truly pays for itself over time, typically within five to 10 years, depending on the array size and energy usage.
When an installer makes a proposal for a solar array, the design is calculated not based just on the size and shape of the roof but the amount of energy the property consumes. The idea is to install a right-sized system that covers most or all electricity needs, depending on the property owner’s energy goals.
After the solar array is in place, it generates power as long as the sun comes up every day, reducing and often eliminating bills paid to the utility.
Flip the Switch On Utility Relationships
In most places, solar arrays can be built to generate as much as 120% of a property’s power needs. This is where the relationship between a solar customer and the utility company really shifts. Excess energy that is produced from a solar array is “sold” back into the local utility’s power grid for a credit on the next energy bill, a process that is known as net metering.
It’s common for solar customers to receive credits from the utility company throughout the summer instead of a bill. The credits can then be used in the winter months to pay utility costs when days are shorter with fewer hours of sunlight.
Net metering allows customers who generate their own electricity cleanly and efficiently to take greater advantage of the investment installed on their rooftops, helping to lower their annual electric bill.
Making the Switch With Incentives and Solar Financing
The upfront cost of solar seems daunting to many, but with various incentives and financing options, going solar is more affordable than you might think. From city rebates to nationwide tax incentives, there are a variety of ways to help pay for the cost of a solar system.
The Inflation Reduction Act (IRA) allowed for the most commonly talked about solar incentive. Thanks to the passing of this bill in 2022, all solar installations in the country are eligible for at least a 30 percent tax credit. This incentive also applies to other energy-related investments such as battery storage and EV chargers. If the installation meets other specific requirements, there is the opportunity for a larger credit.
Regional incentives like the Minneapolis Green Cost Share program and utility rebates like Xcel Energy’s Solar*Rewards or Dakota Electric’s Solar Rebate, offer more benefits that can be used alongside the 30 percent federal tax credit. While these rebates are currently offered, there is no guarantee they will be around in years to come, and often times their funding runs out before the end of the year.
Other exciting news is that Minnesota’s state legislature is seeing the critical impact of solar and is working to make access more accessible to everyone throughout the state. While previously, some Home Owner Associations (HOAs) prevented residents from installing solar, recent legislative action has made it so HOAs cannot deny permission to install solar panels.
Additionally, solar financing options have put solar power systems within reach of more people than ever. A variety of 10, 12, 15, and 20-year loan options for residential installations start as low as 0.99 percent. Commercial properties also have unique incentives available as well including Property Assessed Clean Energy (PACE) loans for qualifying Minnesota businesses.
Greater energy independence and lower power costs are in the future for those who make the switch to solar. Big, small, rooftop-mounted, or out in a field, Minnesota solar arrays come in many shapes and sizes to accomplish energy production goals.
A Trusted Name in Minnesota and Wisconsin Solar Energy
After years of service, All Energy Solar has made a name for itself as one of the top solar installers not only in Minnesota and Wisconsin but nationwide. All Energy Solar makes switching to solar energy easy for property owners of all kinds — residential, commercial, agricultural, municipal, and more. Our industry experience allows us to confidently handle every aspect of the solar process. From initial energy analysis and concepts, engineering and design, construction, and ongoing customer support, our team prides itself on being experts in all aspects of our field.
Solar can often be confusing and come with a lot of questions, which is why we are here to help! All Energy Solar offers various resources to help you on your solar journey. From various local events with solar experts to a variety of online resources, we are dedicated to helping you make a decision that will best fit your energy needs. Say Goodbye to renting your power from the utility company. Get a free solar consultation from All Energy Solar.