Key Takeaways
| Topic | Summary |
|---|---|
| Average Cost Per Watt Installed | $3.00 – $4.50 (before incentives) |
| Total Cost After Tax Credit (6- to 10-kW System) | $12,600 – $31,500 |
| Cost By System Size | Varied according to size and incentives |
| Cost By State | Costs vary widely; average per watt and total system cost differ by location |
| Solar Panels vs. Solar Shingles | Panels generally cheaper, shingles better for certain roof types |
Understanding how much solar panels cost is essential for anyone considering investing in renewable energy. Solar panels offer a sustainable way to reduce electricity bills and lower your carbon footprint. This guide will break down the typical costs associated with solar panel installation, exploring various factors that influence the price and comparing it to alternative options like solar shingles.
Average Solar Panels Cost Per Watt Installed
Average Solar Panels Cost Per Watt Installed (Before Incentives)
The average cost to install solar panels on your home generally falls between $3.00 and $4.50 per watt before any incentives or rebates are applied. This cost usually covers the panels, inverter, mounting hardware, permitting, and installation labor.
Total Solar Panels Cost After Tax Credit (6- to 10-kW System)
For a typical 6- to 10-kilowatt (kW) solar system, the total cost after applying the 30% federal tax credit (or Residential Clean Energy Credit) ranges from $12,600 to $31,500. This range provides a general idea, but the actual cost can vary based on location, equipment choices, and other factors.
Solar Panels Cost By System Size
Different system sizes come with varying installation costs. Here is a breakdown:
| System Size (in kW) | Average Installed Cost (Before Incentives) | Average Final Installation Cost* (After 30% Tax Credit) |
|---|---|---|
| 3 kW | $9,000 – $13,500 | $6,300 – $9,500 |
| 4 kW | $12,000 – $18,000 | $8,400 – $12,600 |
| 5 kW | $15,000 – $22,500 | $10,500 – $15,800 |
| 6 kW | $18,000 – $27,000 | $12,600 – $18,900 |
| 8 kW | $24,000 – $36,000 | $16,800 – $25,200 |
| 10 kW | $30,000 – $45,000 | $21,000 – $31,500 |
| 12 kW | $36,000 – $54,000 | $25,200 – $37,800 |
Solar Panels Cost to Install By State
Solar panels cost of installation varies by state due to differences in local labor costs, permitting fees, and the presence of state incentives. Here’s a comparison of solar installation costs in different states:
| State | Average Cost Per Watt | Average Total Cost for 6- to 10-kW System | Average Total Cost for 6- to 10-kW System (After 30% Tax Credit) |
|---|---|---|---|
| Alabama | $2.02 – $2.85 | $12,100 – $28,500 | $8,500 – $20,000 |
| Alaska | $2.23 – $3.13 | $13,400 – $31,300 | $9,400 – $21,900 |
| Arizona | $2.53 – $4.31 | $15,200 – $43,100 | $10,600 – $30,200 |
| Arkansas | $2.67 – $3.06 | $16,000 – $30,600 | $11,200 – $21,400 |
| California | $2.50 – $3.45 | $15,100 – $34,500 | $10,500 – $24,200 |
| … | … | … |
Solar Panels Cost By Type
Different types of solar panels come with different costs and efficiency levels:
| Solar Panel Type | Average Cost Per Watt (Before Installation) | Efficiency |
|---|---|---|
| Monocrystalline | $1.00 – $1.80 | 17% – 22% |
| Polycrystalline | $0.80 – $1.00 | 15% – 17% |
| Thin-film | $0.50 – $1.00 | 11% – 14% |
Solar Energy Cost Per kWh
The cost of solar energy per kilowatt-hour (kWh) depends on several factors including the system’s location, efficiency, and total installed cost. By calculating the total generated electricity and dividing it by the system cost, the solar cost per kWh can be derived. This helps in comparing the cost-effectiveness of solar energy with conventional energy sources.
Solar Panels Cost of Installation Factors
Solar Equipment
The types of equipment used in a solar installation can significantly impact the overall cost. High-efficiency panels, premium inverters, and durable mounting systems tend to cost more but offer better performance and longevity.
Grid-Tied vs. Off-Grid Solar Systems
Grid-tied systems connect to the local utility grid, allowing homeowners to use grid power when solar production is low and to earn credits for excess energy produced. Off-grid systems are independent and require energy storage solutions, which can be more expensive to install and maintain.
Solar Tax Credits & Incentives
A variety of incentives can reduce the cost of solar panel installation. These include federal tax credits, state and local rebates, property tax exemptions, and net metering. Here are some common incentives:
| Incentive Type | Description |
|---|---|
| Residential Clean Energy Credit (Former ITC) | A 30% federal tax credit available on qualifying systems installed from 2022 to 2032. |
| Property Tax Exemptions | Increased home value from solar installation may be exempt from property taxes. |
| Sales Tax Exemption | Exemption of solar panels and system components from sales tax in many states. |
| Net Metering | Credits on electric bills for excess energy sent back to the grid. |
| Power Purchase Agreement (PPA) | Utility installs and maintains equipment, homeowner pays fixed rate for power. |
| Solar Renewable Energy Credits (SRECs) | Payments for energy generation, $1 for every MWh generated in some states. |
| Solar Lease | Monthly fee to the solar company that owns and maintains the system. |
| State, Local Government, & Utility Company Incentives | Varying rebates and tax incentives by location. |
Additional Solar Panels Costs
In addition to the panels and installation, other costs can include permits, inspection fees, and potential roof repairs or upgrades to support the solar array. Maintenance costs should also be considered, although they are typically minimal.
Buying vs. Leasing Solar Panels
Buying solar panels requires a significant upfront investment but results in long-term savings and increased home value. Leasing allows for solar energy usage without the initial expense, but savings and benefits might be less compared to ownership.
Solar Panels Costs vs. Solar Shingles Costs
Comparing solar panels and solar shingles can help homeowners decide which option best suits their needs:
| Factor | Solar Panels | Solar Roof Shingles |
|---|---|---|
| Average Cost Per Watt (Installed) | $2.50 – $4.50 | $4.00 – $14.00 |
| Pros | Cheaper, customizable for exposure, long lifespan | Aesthetic, suitable for lighter roofs, clean energy |
| Cons | Potentially unsightly, space-consuming | More expensive, less efficient, fixed installation |
You can read more about the costs associated with solar roof shingles in our Solar Shingle Roof Cost Guide.
Solar Panels Cost FAQs
Are Solar Panels Worth It?
Yes, solar panels are generally worth the investment due to long-term savings on electricity bills and the positive environmental impact. However, the return on investment can vary based on location, energy usage, and available incentives.
Do Solar Panels Increase Home Value?
Yes, installing solar panels can increase a home’s value, making it more attractive to potential buyers. Homes with solar installations often sell at a premium compared to similar homes without solar.
How Long Does It Take To Install Solar Panels?
The installation process for solar panels typically takes one to three days, depending on the complexity of the system and the size of the installation crew. However, the entire project, including permits and inspections, may take several weeks.
How Many Solar Panels Do I Need?
The number of solar panels needed depends on the household’s energy consumption, the size of the roof, and the efficiency of the selected panels. A typical home may need between 20 to 30 panels to cover its energy needs.
How Long Do Solar Panels Last?
Solar panels have a typical lifespan of 25 to 30 years. Their efficiency may decrease slightly over time, but they can still produce energy beyond their warranty period.
Getting Estimates From Solar Panel Contractors
Questions To Ask A Solar Panel Installer
- Experience and References: How long have they been installing solar panels, and can they provide references from satisfied customers?
- Licensing and Insurance: Are they properly licensed and insured?
- Warranties and Maintenance: What kind of warranties do they offer on the panels and installation, and what does the maintenance involve?
- System Sizing and Customization: How will they determine the right system size for your home, and can they customize the installation?
- Cost and Financing Options: What are the upfront costs, and what financing options do they offer?
Selecting the right solar panel systems involves considering multiple factors that affect cost and performance. Leveraging state and federal incentives can make solar installation more affordable and accessible, further driving the adoption of renewable energy solutions.
Related Cost Guides
For more detailed information on related home improvement projects, check out these guides:
- Solar Panel Maintenance Cost: Learn about the costs associated with maintaining solar panels to ensure optimal performance and longevity.
- Solar Panel Cleaning Cost. This guide provides comprehensive insights into the expenses associated with maintaining the cleanliness and efficiency of your solar panels.
- Solar Shingle Roof Cost: Discover the expenses involved in installing a solar shingle roof, including benefits and potential drawbacks.
- Tesla Solar Roof Cost: Get detailed information on the costs of installing a Tesla solar roof, including installation, materials, and efficiency considerations.
