Solar State Incentives & Solar Tax Credits
Currently, there are several incentives to take advantage of to offset the cost of solar panel installation. Theyre worth the effort of investigating. The federal government offers tax credits worth up to 26% of qualifying solar energy systems.
Depending on your state, you may also qualify for one or more state incentives, including state tax credits, government rebates, renewable energy credits, local incentives, subsidized loans or regional utility rebates.
What Is The All
Even though the average cost of solar panels has dropped 80% in the last decade, the upfront cost is still significant. When selecting the best solar company for your home installation, price is one of the largest factors.
To answer this question, lets take a look at the basic price range for solar panel installations. According to a recent report from the Solar Energy Industries Association, in the first quarter of 2021, the national average cost of a residential solar system was $2.94 per watt.
To put this in perspective, this means that after the 30% federal tax credit is applied, a 5-kW system would cost $10,290 and a 10-kW system would cost $20,580. An average residential solar system would sit somewhere between those figures.
Next, you might rightly wonder: What exactly am I paying for? The solar panels themselves usually make up just about a quarter of the total system cost. Remaining expenses include labor costs, solar maintenance and additional parts and equipment .
Solar Panel Installation Cost Data
The average cost to install a 7 kilowatt solar panel system on a home is around $21,000. When you take the 30% federal solar tax credit into account, that cost drops to around $14,700. The price could be even lower, depending on what other state or local incentives are available in your area.
For those of you who are just beginning your solar installation research or just doing general industry research, our solar panel cost guide is a great place to start. We show the most up-to-date data of the average cost of a residential solar panel installation in each state and the average cost for systems using the best solar panel brands on the market, as well as labor costs.
The averages in our guide are great as a starting point for your solar journey, but theyre just that â averages. Those numbers wont be 100% accurate for your situation because your home probably isnt average. Each house is unique â houses in different states can be different, even houses in the same state are different!
This is where our solar calculator comes in. You can find an accurate cost and savings estimate for your specific home based on your location and how much you spent on your last electric bill. Our calculator doesnt require you to enter your name or contact details but still shows all the results.
Find out how much a solar system would cost for your specific home
Also Check: How Much Is Solar Power
Solar Power Of Oklahoma
As a full-service company, Solar Power of Oklahoma provides service from consultation through installation. The company installs products, including the Tesla Powerwall and Q Cell solar panels . Solar Power of Oklahoma has installed over 100,000 solar panels and was named the No. 1 Ranked Solar Contractor in Oklahoma by Solar Power World in 2019, 2020 and 2021.
China Made Solar Panels Cheap
Seeing a great chance in solar power, China started opening their own solar panel factories. The cost of solar kept decreasing and the total cost of solar was at the historic minimum year after year. Utility-scale solar plants started appearing in Germany and the USA which brought solar system cost and installation costs down manyfold.
Don’t Miss: Free Solar Panels New Jersey
Tracking Solar Panel Mount
A tracking averages $500 to $1,000. This mount type is mostly designed for ground use on large properties. It is most often used in commercial settings rather than residential. These mounts follow the position of the sun throughout the day. In theory, it allows you to get the most sun and energy for your installation. However, some experts say that if you have this much space, it would be cheaper to turn a few arrays in another direction to maximize the energy rather than relying on the tracking mount.
When To Install Solar Panels
Contrary to popular belief, winter is actually the best time to install solar panels. There is simply less demand for this service in winter, so the installation should cost less as a whole. Even if you live in a region that tends to be cloudy and/or chilly, your solar panels will still be able to generate energy and in some cases, will even generate more energy than they would in warmer months.
Installing solar panels during winter is, in addition to being cost-effective, efficient. With solar installation companies doing fewer jobs in the off-season, your panels are likely to be installed faster, and will be up-and-running in no time.
Compare Quotes From Top-rated Solar Panel Installers
Select a State To Get Started With Your No Commitment, Free Estimate
You May Like: Is My House Good For Solar Map
How Are Florida Solar Panel Costs Broken Down
For homeowners looking for a way to reduce electricity bills throughout the year, solar is the way to go. There are an estimated 237 sunny days each year in Florida. Thats more than the nations average, of 205 days, by an entire month. Solar energy can help you save money while also helping to save the planet and improve the environment for future generations.
The average price for a residential solar power system is $11,442, based on a 6000 watt solar system.
C How To Install The Solar Panels By Yourself
Do you not want to count on installation companies? Follow this 14-step guide to have everything done yourself.
Tools
Step 1. Double Check The Compatibility
Before you start, ensure your house is compatible with the new solar system.
Assess if the roof is big enough or whether there is sufficient room for ground-level panels. In certain cases, you might have to trim branches, remove trees, or upgrade the electrical panel. On top of that, guarantee the roof is in great shape, without the need for replacement in the near future.
Step 2. Choose The Sizes
Once certain about the houses compatibility, its time to ask yourself which items or objects the system will provide energy for. Whether its some simple electric appliances or a power source big enough to support an entire company, its all your choice.
Step 3. Ask for Permits
Now apply for panel-building permits in your locality. Certain regions might also demand separate permissions for electrical setups.
Usually, waiting for approvals and scheduling follow-up inspections are among the worst time-consuming periods of this project. Be patient!
Step 4. Enroll for Solar Incentives
Why dont you try your best to utilize these solar investments? Incentive programs are the way to go.
These programs differ across local and state levels. Sometimes, even federal government incentives fluctuate. But all in all, their general aim is to gain your grants, rebates, or multiple-source tax credits to cut off upfront costs.
Don’t Miss: Can A Sole Proprietor Build Business Credit
Does Solar Increase Home Value
A solar energy system can increase the overall value of your home. The installation is viewed the same as upgrades like kitchen expansions, finished basements and updated bathroom fixtures. According to a 2019 Zillow report, solar panels increase home value by 4.1%, or an additional $9,274 on average.
Solar Panel Financing And Incentives
Solar panel system providers know that most homeowners dont have immediate access to more than $20,000 up-front in cash. You can now cover your solar panel installation through various financing options, breaking down one large payment into smaller, more manageable chunks.
You can also take advantage of two primary types of solar incentives as a homeowner: federal and state. The federal solar investment tax credit is available to all homeowners living in the United States, no matter where theyre located. A homeowner in Florida will have the same federal tax incentives as a homeowner in California, regardless of local laws.
Individual state credits are only available to residents of the state issuing them. State tax incentives and other solar credits may change regularly, so read up on your states current incentives before you begin calculating the cost of your solar panel system investment.
Recommended Reading: Is Llc Better Than Sole Proprietorship
Monocrystalline Silicon Solar Cells
The cost of monocrystalline solar panels averages $0.60 to $1.20 a watt uninstalled. This is the most expensive but most efficient type. It is highly aesthetic and works well in a variety of applications. This panel type is made up of cells that are formed from whole silicon crystals. The whole crystal, rather than the fragments that make up polycrystalline, makes these panels much more efficient. It also makes them longer-lasting in some applications. Depending on where you install this type of panel, you may also opt for a bifacial option, which has the cells on both sides to maximize your energy.
Applying For Tesla Solar Panels
He didnt shop around for a solar provider, since he knew people who worked at Tesla, and people whose solar projects were installed by them. The application process was smooth, he notes you apply online, and get an evaluation of your homes solar potential, which they do through satellite photography.
For example, maybe you have a chimney, skylight or gas vent they have to fit the solar panels around I had all three, on my multi-level home with a steeply-pitched roof with a lot of angles and peaks or trees that cause lots of shade, he adds.
Don’t Miss: How To Calculate Solar System Size
The Bottom Line: Solar Panels Will Save You Money In The Long Run
At the end of the day, the cost of solar is only as important as the return youll get from installing solar panels. For most homeowners, solar is a worthwhile investment, and you can break even in as few as seven or eight years, depending on the amount of electricity you consume. From that point on, youre essentially generating free electricity and racking up the savings. During those seven to eight years, youll be generating your own electricity instead of paying for electricity from the grid, and any extra electricity you produce you might be able to get credit for thanks to net metering policies . And of course, this is without even considering the environmental benefits of solar.
You can read more about payback periods and the benefits of solar in our article, Are solar panels worth it?. Or, head to our solar calculator for an instant estimate of your savings potential!
Size Weight And Number Of Panels
When assessing solar panel cost, the size, weight and number of panels are things to consider. For instance, when determining how many solar panels youll need, there are a few pieces of information youll need to know:
- How much energy your household uses
- How much space you have on your roof
- How many hours of sun your home gets, and the wattage and relative efficiency of the photovoltaic solar panels youll be installing
Once those are determined, you can begin to calculate the cost.
Also Check: When Is The Best Time To Install Solar Panels
Consider A Solar Battery
A solar battery is an add-on system that helps your solar system store excess power. Solar batteries enable your solar system to function off stored power in low-light conditions, extending the functionality of your system. When you shop for a solar installer, you may be able to negotiate a lower rate on a solar battery as a part of your installation package.
How Much Is A Single Solar Panel In The Uk
The average cost of a solar panel in the UK based on a 250 watt panel is currently between £450 and £550.
However, please bear in mind that this is the price for a single solar panel and do not include the professional installation or any other extras e.g. pigeon proofing.
With that said, lets explore some common solar installation scenarios
Also Check: Can You Lose Power With Solar Panels
Tesla Solar Case Study: Cost Savings Review And More
Tesla is famous for their solar roofs, but they also install solar panels. A LeafScore reader in NorCal shares his experience installing Tesla solar panels at his home in the East Bay.
For his three-bedroom home in Piedmont, California, a small town in the East Bay Area, Alder Yarrow, a wine writer and strategy consultant, chose Tesla for his solar installation in July 2021. He paid about $35,000 for the system, using Federal and state tax credits that dropped the price to about $28,000, and saw his monthly electricity bills cut in half, from about $300-500 a month to an average of $150.
He kindly walked us through his solar project step by step, sharing the good, the bad, and the ugly.
Solar Panel Cost For A 2500 Sqft Home
The cost range of installing solar panels for a 2,500 sq.ft. home ranges from $18,000 to $55,000. Many different factors determine the number of panels and cost. Homes this size require more panels than smaller homes even for basic needs. If you add in any major electrical systems, such as HVAC, your costs will be higher. If you want to reduce your dependency on the grid by a significant amount, your costs will be higher as well. If you have relatively low energy needs, your costs could be even lower than the average.
Don’t Miss: Best Solar Powered Path Lights
Determine Average Cost Of Solar Panels In Florida With This Purchase Guide
With the constant sunshine year round, solar panels in Florida make sense for many reasons. For those who are considering FL solar panel installation, the initial Florida solar cost may scare you. Yet, there are incentives available and numerous opportunities to reduce your costs. Often, these solar panels pay for themselves over time. Take a closer look at the average cost of solar panels in Florida as well as what you need to consider before buying.
Types Of Solar Energy Systems
There are three kinds of residential solar energy systems:
- Grid tie: The most affordable type. This collects solar energy and puts it back into the grid. Youll save money on power bills, but your power will still go out if the grid goes down because theres no battery storage.
- Off-grid: This means your house is not tied into any utility company electric lines, but instead works as its own power generation plant. These are more costly, plus need to be oversized in order to give the homeowner reliable power in the worst-case scenarios, says Carson Toews, general manager of Solarset in Center, Colorado.
- Hybrid: This system ties into the grid but also has backup batteries. Its priced like an off-grid system, except it doesnt need to be oversized like a full off-grid system.
Recommended Reading: 4×4 Post Caps Solar Lights
Soft Cost Reduction Solutions
The Department of Energys Solar Energy Technology Office launched an initiative called Sunshot in 2011. The goal is to put solar energy financially on par with other energy sources by the year 2020.
Various permitting, entities and laws throughout various jurisdictions can slow down the process of solar installation and raise costs. Through systematizing and unifying solar, SETO is working to cut red tape and prices.
They also fund research for new ways to streamline solar company operations. Better software and processes to help solar companies reach new customers and run more smoothly helps tame soft costs. Through these efforts, the savings can be passed on to solar customers.
How Freedom Solar Can Help With Savings
There are many factors that can affect the cost of your solar system, which is why it helps to have a trusted installer help you through the financial process. Here at Freedom Solar, were eager to help businesses go solar all across Texas and Colorado. Our financial expertise is just one of the reasons why were a leading residential solar installer.
Well help you find and take advantage of every possible financial incentive for solar energy in your area. The result? Youll reap the long-term benefits of these commercial solar power savings and see this sustainable investment for the future of your business.
You May Like: Is Solid State Drive Better
Traditional Solar Panel Prices Vs Tesla Panels And Solar Roof
Solar panel prices vary, but for traditional panels, you can generally expect to pay about $2,500 $3,000 per kw of solar capacity. Keep in mind that the price of the panels, themselves, is only part of the total cost. Additional hardware will be needed, and then, of course, there are always the installation fees. For an average-size home, you can probably expect to pay $15,000 $20,000 for a solar unit.
Tesla solar panels are actually a little cheaper, averaging about $2,000 per kwh of solar capacity. Tesla solar has four different system sizes, and Teslas costs range from $8,200 $32,800. However, Tesla offers a unique plan where you can rent the Teslas panels for a monthly subscription fee. This fee includes installation and maintenance by Tesla themselves. You only have to pay an extra $2,500 to have the panels removed when you cancel your service with Tesla .
A home battery can add another $5,000 $10,000 to this cost. Note that Tesla solar has recently started bundling their solar installations with the Tesla battery systems. While you used to be able to buy one without the other, this is no longer possible. Tesla does, however, offer discounts for buying multiple Tesla Powerwall units.
If you are considering a solar roof from Tesla, you might keep a couple things in mind :
