Best Solar Companies in Arden

Should I go solar in Arden? What are the financial benefits?

Going solar in Arden, North Carolina, can be a worthwhile investment due to several financial incentives and the potential for significant savings on electricity bills. Here are the key factors to consider:

Financial Incentives

• Federal Solar Investment Tax Credit (ITC): Homeowners can claim a 30% tax credit on the cost of their solar panel system, which includes equipment, labor, and permitting costs. This credit is available until 2032
• Duke Energy PowerPair Rebate: Duke Energy customers can receive up to $9,000 in rebates if they install a solar-plus-battery system. This includes up to $3,600 for the solar panels and $5,400 for the battery, provided the system meets specific criteria
• Net Metering: North Carolina offers net metering, allowing homeowners to earn credits for excess electricity generated by their solar panels. These credits can offset future electricity bills, although unused credits are forfeited annually on June 1
• Property Tax Exemption: Solar panel systems are exempt from property tax increases in North Carolina, meaning the added value from the solar installation does not increase property taxes

Cost and Savings

Installation Costs: The average cost of solar panels in North Carolina is approximately $2.49 per watt, which is lower than the national average. For a typical 6 kW system, the cost after the federal tax credit is around $10,441

Long-term Savings: Homeowners in North Carolina can save an average of $4,007 on solar panels with available rebates and incentives. Over 20 years, the average savings can amount to approximately $17,000

Local Solar Companies

Top Installers: Several reputable solar companies operate in North Carolina, including 8MSolar, Yes Solar Solutions, and Renu Energy Solutions. These companies offer various services, including installation, maintenance, and financing options

Arden, North Carolina, located in Buncombe County, has an average residential electricity rate of approximately 15 cents per kilowatt-hour (kWh), which is higher than the state average of 13.42 cents per kWh and lower than the national average of 18 cents per kWh. The average monthly electricity bill for residents in Buncombe County is about $199, translating to an annual cost of $2,388.

Solar Panels and Cost Reduction

Installing solar panels can significantly reduce or even eliminate these electricity costs. Here’s how:

1. Initial Costs and Incentives: The average cost of solar panels in North Carolina is around $2.49 per watt
2. Savings Over Time: A 6 kW solar panel system can generate around 8,000 kWh annually, which is sufficient to cover the average annual electricity consumption in Buncombe County. This can lead to substantial savings on electricity bills. For instance, if the system offsets 100% of the electricity usage, the annual savings would be around $2,388, matching the average annual electricity cost

Net Metering Policies

North Carolina has a net metering policy that allows solar panel owners to earn credits for excess electricity generated and sent back to the grid. Here are the key points:

1. Current Net Metering Structure: As of now, Duke Energy customers in North Carolina can participate in net metering programs that offer a 1:1 credit for excess solar energy sent to the grid. This means that the energy produced by the solar panels during the day can offset the energy consumed from the grid at night or during cloudy days
2. Changes to Net Metering: Recent changes to the net metering policy, effective from October 1, 2023, have introduced new rate structures. The new policies include the Bridge Rate Plan and the Residential Solar Choice Plan, which will replace the existing net metering system by 2027. These plans involve time-of-use rates and other adjustments that may affect the overall savings from solar installations

Example of Typical Savings

Let’s consider a typical 6 kW solar panel system in Arden, NC:

• System Cost: $14,940 before incentives, $10,458 after the 30% federal tax credit.
• Annual Electricity Generation: 8,000 kWh.
• Annual Savings: $2,388 (based on current electricity rates).
• Payback Period: Approximately 4.4 years (total system cost divided by annual savings).
• 20-Year Savings: $57,500 (considering a 1.9% annual increase in electricity prices).

Local and Utility-Specific Incentives for Solar Installations in Arden, North Carolina

Arden, North Carolina, benefits from several local and utility-specific incentives that make solar installations more affordable and attractive. Here are the key incentives, tax credits, and rebates available:

Federal Solar Investment Tax Credit (ITC)

• Homeowners can claim a 30% tax credit on the cost of their solar panel system, which includes equipment, labor, and permitting costs.
• Eligibility: Available for both residential and commercial solar installations.
• Duration: The 30% credit is available until 2032, after which it will decrease to 26% in 2033 and 22% in 2034.

Duke Energy PowerPair Rebate

• Duke Energy offers a rebate of up to $3,600 for solar panels and $5,400 for battery storage when installed together, totaling up to $9,000 in savings.
• Eligibility: Available to Duke Energy Carolinas and Duke Energy Progress customers who install a new solar-plus-battery system.
• Application: The application process for the rebate opens in May 2024, and it is expected to fill quickly due to limited capacity.

Net Metering

• North Carolina offers net metering, allowing homeowners to earn credits for excess electricity generated by their solar panels. These credits can offset future electricity bills.
• Details: Duke Energy has introduced new net metering options, including a modified net metering credit called the “Bridge Rate” and a time-of-use (TOU) rate. The choice between these options depends on the customer’s energy usage and goals.

Solar Property Tax Abatement

• North Carolina exempts 80% of the value of a solar panel system from property tax increases. This means that the added value from the solar installation does not significantly increase property taxes.
• Eligibility: Applies to both residential and commercial solar installations.

Community Solar Programs

• Due to House Bill 589, Duke Energy and Duke Progress must have community solar farms available to customers. Multiple households or businesses can subscribe to a community solar farm and receive utility bill credits for the solar energy generated.
• Eligibility: Available on a first-come, first-serve basis.

Local Rebates and Incentives

• Asheville Solar Permit Fee Rebate: The City of Asheville offers a $175 rebate for the permitting fees for solar energy systems. This incentive is only available for projects within Asheville city limits.
• Piedmont Solar Loan Program: Provides loans of up to $15,000 for seven years with an interest rate of 5% to finance solar panel systems.

*Please note that these programs are subject to change and it’s recommended to check with the relevant authorities or a local solar installer for the most up-to-date information.

How Do I Apply for the Federal Solar Tax Credit?

Here’s a step-by-step guide on how to apply for the Federal Solar Tax Credit:

1. Calculate Your Solar Tax Credit:
   • Determine the total amount you paid for your solar panel system installation, including both materials and labor costs.
   • This amount will be used to calculate your tax credit.
2. Complete IRS Form 5695:
   • Obtain IRS Form 5695, titled “Residential Energy Credits.”
   • You can find this form on the official IRS website or through tax preparation software.
   • On Line 1, enter the full amount you paid for your solar system installation.
3. Include the Necessary Documentation:
   • Attach any relevant documentation to your tax return. This may include invoices, receipts, and proof of payment for your solar installation.
   • Keep copies of these documents for your records.
4. File Your Federal Income Tax Return:
   • When filing your federal income tax return, include Form 5695 along with your other tax forms.
   • Make sure to accurately report the solar tax credit amount calculated in Step 1.
5. Claim Your Tax Credit:
   • The solar tax credit is a dollar-for-dollar reduction in the income tax you owe.
   • For example, if your solar system cost $20,000, a 26% tax credit would reduce your federal income taxes by $5,200.
   • The tax credit percentage varies based on the installation year (e.g., 26% for systems installed in 2020 and 2021, 30% for systems installed between 2022 and 2032).
6. Submit Your Return:
   • Submit your completed tax return, including Form 5695, by the federal tax filing deadline (usually April 15).
   • If you use tax software, follow the prompts to input your solar tax credit information.

Filling instructions

*Remember that this tax credit is a valuable incentive for homeowners who invest in solar energy. Consult a tax professional or visit the official IRS website for the most up-to-date information and any additional guidance.

For more details, you can also refer to the Department of Energy’s Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics.