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 2023.
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.
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.
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.
Solar panels can increase the value of your home, save you money over time, and help you feel good about using renewable energy in your household. Ready to make the switch? Call us today at (520) 333-2665 to schedule an in-home estimate.
Calculating Your Solar Panel Cost
The national average cost for installing a whole-home solar system in the United States currently stands at approximately $20,000. It’s essential to note that this figure serves as a general guideline and your actual expenses can differ significantly based on a multitude of factors:
- Location: The region where you reside can have a substantial impact on the overall cost. Some states offer more favorable conditions for solar energy generation, which could potentially lower your costs. Additionally, local regulations and permitting fees can also influence the final price tag.
- Size of the System: The dimensions of the solar system you require are directly proportional to your energy consumption. A larger home with higher energy needs will naturally necessitate a more extensive, and consequently, more expensive system.
- Quality of Solar Panels: The market offers a range of solar panels varying in efficiency and lifespan. Higher-quality panels may cost more upfront but can offer better value in the long run through increased energy production and durability.
- Installation Complexity: The complexity of the installation process can also affect the cost. Factors such as the slope of your roof, the need for additional electrical work, or the requirement for any structural modifications can add to the overall expense.
- Incentives and Rebates: Various federal, state, and local incentives can significantly reduce the net cost of your solar system. It’s crucial to research and apply for these programs to maximize your savings.
- Financing Options: The way you choose to finance your solar system—whether through a loan, lease, or outright purchase—can also influence your overall costs. Each option comes with its own set of pros and cons that can affect both your short-term and long-term expenditures.
For a clearer picture of your solar panel cost projections, utilize the NREL’s solar calculator tool and then call us for a detailed estimate. We can also point you to different financing options for your solar purchase.