Best Solar Companies in Fayetteville

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

Going solar in Fayetteville, North Carolina, can be a financially beneficial decision due to several factors, including the cost of solar panel installations, available incentives, and the potential savings on energy bills.

Cost of Solar Panels in North Carolina

The average cost of installing a solar panel system in North Carolina ranges from $11,835 to $14,365, with a cost-per-watt between $2.57 and $3.47. For a 5 kW system, the average cost is around $13,358 before incentives. After applying the 30% federal tax credit, the cost drops to approximately $9,350.

Financial Incentives

• Federal Investment Tax Credit (ITC): This credit allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This includes equipment, labor, permitting, and sales tax.

• Net Metering: This program allows you to sell any excess solar power you generate back to the grid, effectively reducing your electricity bills.
• Duke Energy PowerPair Rebate: If you are a Duke Energy customer, you can receive up to $9,000 in rebates when you pair your solar panel system with a battery.
• Property Tax Exemption: North Carolina offers an 80% property tax exemption on the added value of your solar system.

Potential Savings

Solar panels can significantly reduce your monthly electricity bills. The exact savings depend on your energy consumption, the size of your solar system, and the amount of sunlight your location receives. On average, North Carolina receives about 250+ sunny days per year, making it an ideal location for solar energy.

Long-Term Financial Benefits

• Return on Investment (ROI): The payback period for a solar panel system in North Carolina is typically between 6-8 years. After this period, the energy savings can be considered pure profit.
• Increased Property Value: Installing solar panels can increase the resale value of your home, making it a valuable long-term investment

Average Cost of Electricity in Fayetteville, North Carolina

The average residential electricity rate in Fayetteville, North Carolina, is 13 cents per kilowatt-hour (kWh), which is slightly lower than the state average of 13.42 cents per kWh and significantly lower than the national average of 18 cents per kWh. On average, residents in Fayetteville spend about $175 per month on electricity, totaling approximately $2,100 annually.

How Solar Panels Can Reduce or Eliminate Electricity Costs

Solar panels can significantly reduce or even eliminate electricity costs by generating power from sunlight, which offsets the amount of electricity you need to purchase from the grid.

In Fayetteville, the average household consumes about 16,416 kWh annually, which would require an 11.4 kW solar panel system to offset 100% of this consumption. The average cost for such a system is around $30,000 before incentives.

Example of Typical Savings

Assuming an annual increase in electricity prices of 1.9% and financing the solar system with a $0-down loan, the savings can be substantial:

• First Year: $2,100
• Five Years: $10,900
• Ten Years: $22,900
• Twenty Years: $50,500

Net Metering Policies in North Carolina

North Carolina has a net metering policy that allows solar panel owners to earn credits for any excess electricity they generate and send back to the grid. This policy is particularly beneficial as it helps to further reduce electricity bills by offsetting the cost of electricity consumed from the grid during times when the solar panels are not producing enough power (e.g., at night or during cloudy days).

Recent Changes to Net Metering

As of October 1, 2023, new net metering rules have been implemented, which will lower the savings for Duke Energy customers by approximately 20%. However, customers who had their net metering applications submitted by the deadline can lock in the current rates through October 2027.

Payback Period and Return on Investment

The payback period for solar panel installations in Fayetteville, North Carolina, typically ranges from 6 to 13 years, depending on various factors such as system size, cost, and available incentives. Here are some key points:

• Average Cost: The average cost of a 5 kW solar panel system in North Carolina is about $13,358 before incentives, which drops to approximately $9,350 after applying the 30% federal tax credit.
• Return on Investment (ROI): Over a 25-year period, homeowners can save between $15,000 and $30,000+ depending on the size of their system and their current energy usage.