In the United States, homeowners considering solar systems with integrated battery storage can benefit from a range of financial incentives that make these installations more affordable.
These come in several forms, including:
- Rebates: Immediate discounts or cash back offers on qualifying purchases.
- Tax Credits: Reductions in federal or state tax liability for eligible improvements. It provides a 30% tax credit for solar PV systems installed between 2022 and 2032, including eligible energy storage devices with a capacity of 3 kWh or greater.
- Financing Programs: Special loans or payment plans designed to make energy-efficient upgrades more affordable.
By taking advantage of these programs, consumers can significantly reduce the upfront costs of making their homes more energy-efficient and environmentally friendly.
Installing solar panels and battery storage involves several cost components. Here's a breakdown of the typical costs:
Solar Panel System Costs
- Solar panels: $10,000 - $25,000 depending on system size (average $15,000 for a 6kW system)
- Inverters: $1,000 - $2,000
- Racking/mounting: $1,000 - $5,000
- Electrical work: $2,000 - $5,000
- Permitting and inspection fees: $400 - $1,000
- Installation labor: $2,000 - $5,000
Total average cost for solar panel system: $16,000 - $38,000 before incentives
Battery Storage System Costs
- Battery unit(s): $6,000 - $13,000 for a typical 10kWh lithium-ion battery
- Battery inverter (if not included): $1,000 - $3,000
- Battery installation labor: $2,000 - $3,000
- Electrical work (wiring, panel upgrades): $1,000 - $4,000
- Critical load panel (for backup circuits): $1,000 - $2,000
Total average cost for battery storage: $8,000 - $16,000
Moduly Battery System Costs
Compared to Moduly plug-and-play energy storage system, the cost dropped by almost 30%.
- Battery unit(s): $3,800 - $11,000
- Battery installation labor:
$2,000 - $3,000 - Electrical work (wiring, panel upgrades):
$1,000 - $4,000 - Critical load panel (for backup circuits):
$1,000 - $2,000
Total average cost for Moduly battery storage: $3,800 - $11,000
Savings with Moduly:
-
Eliminates Installation Labor Costs: Traditional systems require $2,000 - $3,000 for installation labor, which is completely avoided with Moduly's plug-and-play design.
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No Additional Electrical Work: Conventional battery systems often need $1,000 - $4,000 for wiring and panel upgrades, but Moduly's system bypasses this with its simple setup.
Total System Cost Comparison
Traditional Combined Solar Panel and Battery Storage System:
- Average total cost: $24,000 - $54,000 before incentives
- After 30% federal tax credit: $16,800 - $37,800
Moduly Combined Solar Panel and Battery Storage System:
- Average total cost with Moduly: $19,800 - $49,000 before incentives
- After 30% federal tax credit: $13,860 - $34,300
Key cost factors include the battery type/capacity, solar system size, need for electrical upgrades, and whether installed together or as a retrofit.
Proper sizing based on energy needs is crucial to optimize costs, for more information in how to size your system visit our previous blog of 6. Daily Energy Storage Needs: Choosing The Right Battery Size.
State/utility incentives and rebates can further reduce net costs in some areas.
Available incentives, rebates, and tax credits in US
Federal Incentives
Solar Investment Tax Credit (ITC) - This federal tax credit allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes.
The ITC applies to both residential and commercial solar installations and has been a major driver for solar growth in the U.S. The ITC is currently set at 30% through 2032, after which it will decrease incrementally before expiring in 2035 unless renewed by Congress.
Renewable Portfolio Standards (RPS) - Many states have RPS policies that require utilities to generate a certain percentage of their electricity from renewable sources like solar by setting target dates. This creates demand and incentives for solar development.
- Solar Renewable Energy Credits (SRECs) - SRECs allow solar system owners to sell certificates for the solar electricity their systems generate. Common in states like New Jersey, Massachusetts, Pennsylvania, Ohio.
- Net Metering - Net metering policies, available in most U.S. states, allow solar owners to receive credits on their utility bills for any excess solar electricity sent to the grid.
- Tax Exemptions - Some states exempt solar installations from property taxes, sales taxes, or both.
- Rebate Programs - A number of states like New York, Connecticut, California offer upfront rebates to help reduce the upfront cost of going solar.
Some examples of state-specific incentives mentioned in the sources:
- New York - Solar sales tax exemption, residential solar tax credit
- California - Property tax exclusion, Self-Generation Incentive Program rebates
- Arizona - State residential solar income tax credit
- Ohio - Solar Renewable Energy Credits program
The availability and amount of solar incentives varies significantly across different states. Some solar-friendly states like California, New York, Massachusetts tend to have very attractive incentive programs, while others are more limited.
These combined incentives can significantly reduce the upfront costs of installing a solar-plus-storage system, making it an increasingly attractive option for homeowners looking to increase their energy independence and reduce their reliance on the grid.
To get the most up-to-date and accurate details on solar incentives for a specific state or utility service area, it's recommended to consult the Database of State Incentives for Renewables & Efficiency (DSIRE) or check directly with your state energy office and local utilities.
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