Thinking about installing solar panels to lower your energy bill? Then you’ll probably be wondering what you can expect in terms of solar panel cost and ongoing electricity rates. Intelligent Design is a leading solar installer in Southern Arizona, and we’re here to answer your questions about the cost of solar energy systems.
Solar Panel Cost Fast Facts
- The average cost of solar has fallen about 20% over the last 5 years, and it’s only getting more affordable as renewable energy becomes more common and in-demand.
- Tax incentives can curb your solar installation costs. The full federal solar tax credit is still available through 2022.
- The size of your system impacts the total cost. You’ll have a lower cost per watt with a larger solar system, although the total cost of your system will be higher.
Calculating Your Solar Panel CostThe national average cost for a whole home solar system in the United States is $20,000. However, your costs may vary depending on several factors including:
- The size of your home.
- Your current and predicted future energy needs.
- Labor costs.
- Equipment costs.
- Tax credit eligibility.
Common Questions About Solar Costs
- What’s the typical payback period for solar? The solar payback period is a calculation of how long it will take you to break even on your electric bill and pay back your investment costs. On average, this period is 8 years. So, most homeowners can plan to fully enjoy their investment. Even if you are planning on moving to a new home sooner, having a solar system installed can boost the resale value of your home.
- Will I still be connected to the electrical grid? Your home will still remain on the grid, but you likely won’t ever have a significant utility bill from the local power company. That’s because your home will supply excess energy to the grid during times of high production, and you’ll receive credits to pay for any supplementary power your home uses from the grid.
- How long will my solar system last? You can expect your solar panels to last for at least 20 years with proper maintenance. However, many homeowners can expect closer to 30 years of great performance from their solar systems.