Did you know that solar power is cheaper than coal in some parts of the globe now? The future of solar energy is becoming our present.
And, if you reside in a region where solar panels are inexpensive and are eligible for tax rebates, going solar may significantly cut your monthly power expenses. The long-term savings for homeowners with high power costs may be in the tens of thousands of dollars. However, you should still expect a hefty outlay of cash at the outset.
This brings us to the cost of solar panels in the U.S. Keep on reading for our full breakdown of the average costs of getting solar panels, and the main factors that drive those prices.
The Average Cost of Solar Panels
If you include the federal solar tax credit, the average cost to install solar panels in 2022 is roughly $20,498. This range is from $17,538 to $23,458.
In 2022, the average price for a solar panel is about $2.77/W.
Breakdown of the Costs
There is an initial investment in equipment and setup fees associated with making the switch to solar energy. However, after you’ve paid off the installation fees, your only ongoing expense will be the cost of any energy you consume above and beyond what your panels produce. Long-term savings on power costs and a return on investment are normal after many years, provided the solar system is the suitable size for the house and is properly installed and maintained.
An average household solar panel system may be purchased for $2.94 per watt, according to the Solar Energy Industries Association (SEIA). To put this in perspective, the typical size of a household solar system in the United States is 5 kW, and the cost per watt converts to a little under $11,000.
Solar panel costs fluctuate depending on the manufacturer and sales outlet. But remember that solar panels are only a small part of the overall up-front cost of installing a solar power system. The remaining cost of a solar panel system is comprised of installation (including ancillary equipment) and regular maintenance.
Cost Factors of Solar Panels
The final price tag your solar installation gives you will depend on a number of factors.
Since every person’s circumstances and needs in terms of power consumption and property value are different. Therefore, the cost of a solar installation will vary greatly.
There are a number of important considerations that may and will affect the final price of solar panels for your home.
Location
The price of having solar panels installed varies not just by state, but also by region. It’s important to keep a watch on pricing. Even though the variation isn’t extreme and most regional variations are attributable to variations in system sizes and incentives.
Generally speaking, the average power use per household is higher in places where residents are required to use air conditioning more often. Consequently, places with plenty of sunshine and mild temperatures, such as Arizona and Florida, are home to some of the biggest solar panel systems in the country.
But why does this really matter?
In general, solar panel installers charge less per kilowatt-hour the bigger your system is (kWh). Comparable to making a bulk purchase at Costco, where the unit price may be higher but you ultimately save money by purchasing in greater quantities. More explanation for this occurrence will be provided below.
Again, we return to solar power. The ultimate result is an approximate reversal of the typical pattern, with higher $/W pricing in cold regions and lower $/W pricing in warm ones.
The cost per watt is cheaper in warmer regions. But, these systems need to support a greater load, whereas the cost per watt in colder areas necessitates a smaller system.
Panel Manufacturer and Quality of Equipment
Data on solar panel costs may also be broken down by different brands.
Brand-name solar panels tend to cost more since they are of higher quality. Among solar panel manufacturers, Blue Raven is well recognized for offering high-quality products at competitive rates.
Intriguingly, the cost of different brands seems to fall within comparable ranges for most producers. When comparing system pricing based on panel manufacturers, it is vital to bear in mind that the final system price is flexible.
It’s affected by numerous aspects other only the panel manufacturer. These include installation expertise, location, racking equipment, inverter type, warranty, and many more.
The Type of Residential Solar System
Typically more costly than polycrystalline panels, monocrystalline solar panels provide the maximum performance. While polycrystalline panels are less efficient, you may need to purchase more of them to have the same output. Thus, the difference in the final cost of installation may be less than you think.
Thin-film solar panels are another possibility. However, they are seldom utilized in domestic setups. Consider a lightweight thin-film solution for RV and camper solar panel installations.
The Roof Element
The overall cost of installing solar panels also depends on the details of your house and roof.
If your roof slopes south at an inclination of 30 degrees or less, your solar panel installer will have a much simpler time setting up your panels. They will all be in the same, sun-facing plane. On the other hand, if your roof has numerous levels, dormers, or skylights, it may need more time and money to complete the installation.
Labor Considerations
The business hired to carry out the installation of solar panels is another important aspect to consider.
The cost of having solar panels installed may vary widely. It depends on factors such as the installer’s experience, the length of any warranties they provide, and how much they profit.
You should expect to pay extra for solar panel installation, like the blue raven solar process, from a reputable company that provides extended warranties, but doing so will be well worth it.
Solar Energy: Understanding the Costs
Before committing to solar panels, it’s crucial to investigate your options for solar suppliers and solar equipment. Whenever feasible, you should also make the most of any federal or state incentives.
To choose the most affordable option and sidestep any price gouging, it’s in your best interest to compare as many estimates as possible. Hopefully, you’re now aware of the average cost of solar panels, so you’ll be doing your research from a position of knowledge.
Next step, you’ll want to check out our energy section for more tips and advice on how to make your home a solar power haven.
