Best Solar Companies in Durham

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

Solar energy has become increasingly popular in North Carolina, and Durham is no exception. Let’s explore whether going solar is a worthwhile investment in this area:

1. Solar Viability in North Carolina:
   • North Carolina ranks 4th in the country for solar installations.
   • The average electricity rate in the state is 12.71 cents per kilowatt-hour.
   • The average solar payback period is 13 years.
   • Homeowners in North Carolina benefit from a great net metering program and the federal solar investment tax credit (ITC).
   • On average, homeowners save $24,794 over the lifetime of their solar system.
2. Factors to Consider:
   • Solar panels are a great option for most North Carolinians, but suitability depends on your home’s configuration and energy needs.
   • Consider the following metrics to determine if your home is a good candidate for solar:
     • Energy Bills: Solar panels can lead to long-term savings on electric bills.
     • Property Value: Solar panel installation can increase your home’s property value, with every $1 saved on utility bills potentially adding $20 to your home’s worth.
     • Location: The impact of solar panels on property value may vary based on your property’s location.

*However, the exact worth of going solar can vary depending on specific factors such as your home’s solar potential, your current electricity usage, and the specific financing and pricing options offered by your chosen solar installer.

How much does solar save homeowners in Durham, North Carolina?

Average Cost of Electricity in Durham, North Carolina:

On average, residents in Durham, NC spend approximately $174 per month on electricity, which adds up to $2,088 per year. This is 4% lower than the national average electric bill of $2,179.

The average electric rates in Durham are around 13 cents per kilowatt-hour (kWh). This means that the typical electricity customer in Durham uses 1,368 kWh of electricity per month and 16,416 kWh annually.

Solar Panels and Savings:

Solar panels can significantly reduce or even eliminate your electricity costs. By generating your own clean energy, you can offset the electricity you consume from the grid.

Let’s consider an example: Suppose you install an 11.4 kW solar panel system in Durham. Based on sunlight hours and intensity, this system can offset 100% of your annual electricity consumption of 16,416 kWh.

On the EnergySage Marketplace, the average cost for such a system is $30,000 before incentives.

Assuming an annual increase of 1% in electricity prices and financing the system with a $0-down loan, here’s how your savings could accumulate over time:

• First year: $2,100 saved
• Five years: $10,600 saved
• Ten years: $21,800 saved
• Twenty years: $45,900 saved.

Net Metering Policies in North Carolina:

Net metering allows you to earn credits for excess solar electricity you send to the grid. In North Carolina:

New net metering rules take effect on October 1, 2023.

If you submit a net metering application before that date, you can lock in current net metering rates through 2026.

Current Duke Energy customers with solar can keep their current rates through September 30, 2027.

Going solar now ensures more favorable net metering rates through 2027.

These changes may decrease long-term solar savings by an estimated $10,000, but going solar promptly can help you secure better rates.

Payback Period and ROI

Let’s explore the financial aspects of going solar in Durham, North Carolina:

1. Solar Installation Costs:
   • The average cost of installing a solar panel system in Durham is approximately $17,166 for a typical 7.0-kW system before applying the 30% federal solar tax credit.
   • Keep in mind that actual costs may vary based on your specific situation and the solar company you choose.
2. Savings Over Time:
   • Over a 20-year period, the average homeowner in Durham can save about $18,000 on their energy bills by adopting solar power.
   • These savings accumulate as you generate your own clean energy and reduce reliance on the grid.
3. Payback Period:
   • The payback period for solar panels in Durham is approximately 13.3 years.
   • This means that after around 13 years, your cumulative energy bill savings will surpass the initial investment cost.
   • Beyond the payback period, you’ll continue to enjoy free or significantly reduced electricity costs.
4. Factors Affecting Costs and Savings:
   • The actual payback period depends on several factors:
     • System Size: Larger systems may have a longer payback period but generate more savings over time.
     • Electricity Rates: As energy prices rise, your savings will increase.
     • Net Metering Policies: Net metering allows you to earn credits for excess solar electricity sent to the grid, further enhancing savings.
     • Home Value Increase: Solar panels can also boost your home’s value by about 4.1%.

What is the average cost of going solar in Durham, North Carolina?

Average Solar Panel System Cost in Durham (2024):

As of April 2024, the average solar panel system costs $2.71 per watt (W), including installation in Durham, NC.

For a 5 kW installation, this comes out to about $13,567 before incentives. However, prices can range from $11,532 to $15,602.

After applying the 30% federal tax credit, the average price drops by 30%.

Cost by System Size:

Larger solar panel systems cost more money. Here’s how the system cost varies based on size (before incentives):

• 3 kW: $8,140
• 4 kW: $10,854
• 5 kW: $13,567
• 6 kW: $16,281
• 7 kW: $18,994
• 8 kW: $21,708
• 9 kW: $24,421
• 10 kW: $27,134

Estimated Savings Over 20 Years:

If you pay for your system with cash, you could save about $14,346 on electricity costs over 20 years with a 5 kW system in Durham, NC.

This estimate considers the system’s cost, the federal tax credit, and inflation rates.

The payback period is approximately 11.92 years.

Durham Solar Incentives & Rebates

Certainly! If you’re considering solar installations in Durham, North Carolina, there are several incentives, tax credits, and rebates that can significantly reduce the upfront cost. Let’s explore them:

1. Residential Clean Energy Tax Credit (Federal Investment Tax Credit – ITC):
   • The federal ITC can lower your solar panel system’s cost by 30%.
   • This incentive applies to the entire system, including equipment, labor, permitting, and sales tax.
   • For example, if the average cost of a 5 kW solar panel system in North Carolina is around $12,977, the ITC reduces it to $9,084 after factoring in the credit.
   • To qualify for the ITC, you must purchase the system with cash or a solar loan (leasing is not eligible).
   • You also need a sufficient tax bill, and any remaining credit can be rolled over year-to-year until the end of 2034 when the ITC expires.
2. PowerPair Rebate Program (Duke Energy Customers):
   • If you’re a Duke Energy customer, consider a solar-plus-battery system under the PowerPair program.
   • Pair your solar panel system with a battery, and you could earn a one-time rebate of up to $9,000:
     • Up to $3,600 for the solar panels.
     • Up to $5,400 for the battery.
   • This program encourages energy storage and resilience while maximizing your savings.
3. Local Utility-Specific Incentives:
   • Duke Energy offers additional incentives for solar customers in North Carolina.
   • Residential customers receive 40 cents per watt, translating to an average savings of $2,000 for a typical 5 kW system.
   • Commercial customers can get 30 cents per watt, up to a rebate of $30,000.
   • Nonprofit customers receive 75 cents per watt, up to a rebate of $75,000.

*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.