Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
In 2021 and 2022, more homes than ever before in Illinois made the move away from polluting fossil fuels to clean, solar energy to power their homes. So, Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
In this blog post we’ll explore the ins and outs of getting solar panels in Peoria, IL, look at why so many homes are transitioning to solar, and answer the question “Is it worth it to get solar panels in Peoria?”
Ameren Price Hikes Are Causing Homes in Peoria To Feel The Pinch in 2023
One of the biggest reasons why so many homes have installed solar panels in recent years is that they want to save money on their utility bills, and be immune to the consistent annual inflation of the energy market¹.
Few years on record, however, have seen the kind of price hikes² that homes across America have suffered in 2022 as a result of the ripples of Putin’s war in Ukraine leading to unprecedented highs in the wholesale energy market.
Nevertheless, while many homes across America are feeling the sting from this price shock, perhaps it is felt nowhere more than in the Ameren territory of Central Illinois.
- In summer 2022, Ameren raised the price of electricity from around 5 cents to 10.6 cents³ per kWh – a whopping 120% increase on their price for the summer period in 2021.
- The summer price hike meant that Ameren customers in cities such as Peoria had to find an additional $52 per month for their utility bill, on average.
- In autumn 2022, the price paid by Ameren customers in Peoria rose even higher, to 11.2 cents per kWh – an 85% increase on the same period last year.
- In West Central Illinois cities such as Jacksonville, the price per kWh will rise even further to a record high of 12.2 cents.
- An even greater cause for concern is that according to the EIA⁴, average prices are projected to rise further in 2023, to 15.3 cents per kWh – leaving homeowners scrambling to pay the bills as energy giants make record profits.
Are Solar Panels A Credible Solution? You Decide
Studies have shown that getting solar panels can save the average home anywhere between $25,000 and $40,000 in total over the lifetime of their system. The exact amount that you save, however, depends on factors⁵ such as:
- Your location
- Your annual electricity consumption
- Market fluctuations, such as those in 2022
The Cost Of Solar Has Never Been So Low
A recent analysis of the cost of getting solar panels in the USA over the last decade, showed that the price of residential solar panel systems has dropped by around 60% since 2011.
The analysis showed that whereas the average cost of a 6kW system was around $50,000 in 2011, today the same system would only set you back between $16,000 and $21,000, depending on your location and provider. Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
How Much Does It Cost To Get Solar Panels in Peoria, IL?
As of November 2022, the average cost of a solar panel installation in Peoria, IL is around $3.15 per watt. This means that a 6kW solar panel system would cost around $18,900 before tax credits and state incentives.
The cost per watt is dependent, however, on your system size – the solar panels in your system, the higher the overall cost but the lower the price per watt.
Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
What Solar Incentives Are Available in Peoria, IL?
There are a number of incentives that are available in Illinois, which can lower the overall cost of investing in a residential solar panel system. These include:
- The Solar Renewable Energy Certificate (SRECs)
The Adjustable Block Program, available under Illinois Shines, enables you to earn solar renewable energy certificates (SRECs), which are calculated based on the size of your system.
Some providers manage the application process for you and deduct the cost from your solar system, although with others you have to apply for yourself and it can take up to 18 months.
For the average homeowner that has made the move over to solar energy, SRECs can result in savings of around 25% of the cost of their system.
- Federal Solar Investment Tax Credit (ITC)
The ITC is a federal tax credit for residential solar panel installations, available to many homeowners who buy a solar panel system. The tax credit is worth 30% of the cost of the installation.
Most homeowners who pay federal taxes are eligible but there are certain eligibility criteria – and not everyone qualifies – so you should always check with your CPA before purchasing a system.
Solar net metering is an agreement where you are able to earn utility credits with your energy provider for the excess electricity that your solar panels generate and feed into the grid.
Currently in Illinois, the net metering agreement is at a ratio of 1:1. In other states where this was originally the case, however, the agreement has been reduced for new solar systems – so new homeowners going solar will only generate credits worth 75% of what they put in.
Homes that joined during the original agreements have kept their terms, however. This shows that if you want to make maximum savings from your system, there’s no time like the present to install solar panels.
Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
Solar Leasing Offers An Alternative To The High Upfront Costs
Solar leasing⁶ offers an alternative to the high upfront costs of purchasing a solar panel system. With a solar lease, a third party pays for your home to be upgraded to solar and then you lease the system from them.
With solar panel leasing, you’re not paying for the system – you’re essentially just paying for the energy that you use. There are a number of benefits to leasing solar panels. These benefits can include:
- You have no out of pocket expenses – something which makes solar panel leasing an attractive option for homes managing on a budget
- You’re able to make immediate savings of around 40% on your annual energy bill, rather than having to wait up to 10 years for the system to pay for itself
- You’re not responsible for the solar panel maintenance costs
- If your roof specifications aren’t optimal for solar panel efficiency, this can be the most cost-effective option
Thinking Of Getting Solar Panels In Peoria, IL? Consult The Experts
If you’re a Peoria resident who is uncomfortable with the unpredictable and punishing price fluctuations of the fossil fuels energy market, you’re not alone. What’s the solution…?
Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
…A Green Home Makeover
You can generate your own power for free, from your property, with solar panels. Solar energy is not only a viable alternative to the grid, it’s the future.
At Green Home Makeover, we provide tailored solar solutions to homes across Illinois, so that homeowners can be immune to the cost of global energy market manipulations.
If you’re interested in finding out how we can help you make the move over to green energy, contact us today for a free, no-obligation consultation and quote.
Is It Worth It To Get Solar Panels In Peoria Illinois 2023?
Read our coming article to know more about: “How Solar Net Metering Works in Illinois 2023? / Which Type Of Solar Panel Is Best in Illinois 2023? / How Much Does It Cost to Install Solar Panels in Illinois in 2023? / How Solar Net Metering Works in Illinois 2023? / What Are the Solar Incentives In Illinois 2023?”
References:
- https://www.eia.gov/electricity/sales_revenue_price/
- https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
- https://money.yahoo.com/cub-ameren-illinois-summer-power-182000311.html
- https://www.eia.gov/outlooks/steo/report/electricity.php
- https://www.cnet.com/home/energy-and-utilities/houston-solar-panels/
- https://www.forbes.com/home-improvement/outdoor/solar-leasing-explained/