Costs To Install Solar Panels

Factors That Affect The Cost Of Installation

The cost of installing solar panels also depends on several other factors, such as the size of the system, the type of panels used, and the complexity of the installation. The cost of materials and labor will also impact the overall cost of the project. Additionally, some states offer additional incentives for solar panel installations, such as tax credits or rebates.

Labor Costs For Installing Solar Panels

For a 5kW solar energy system, which comprises of 15 to 25 panels, costs about $30,000. The average labor cost for the installation is $0.59 per Watt. It is about 10% of the total system cost. Therefore, for installation of a 5kW solar energy plant, the labor charges would cost $3,000. The expenses include electrician installation and non-electrician labor costs. Labor costs for installing solar panels vary depending on the conditions, the output of the solar energy plant, and the soft costs. For example, the hardware required for the setup is high in the United States when compared to Germany. Therefore, labor costs in Germany are $0.36 cheaper per Watt than the USA. Although the initial investment is high, over the course of the period, the solar panels save anywhere between $7,000 and $28,000. It depends on the country and the environmental conditions. Receiving a quote will be helpful before choosing an appropriate installer.

Estimating Your Solar Cost

There are two main parts of solar energy for your home. Most of the expense that comes along with solar panels is the cost to install solar panels, and the cost to purchase the panels themselves. You can even reduce the cost of solar installation by taking the proper steps beforehand.

The upfront cost is really the only struggle for many homeowners. Otherwise, there are minimal long-term expenses, and systems are designed to last for 20 years or more.

The best way to calculate how much your solar panels will cost is by taking a look at your energy usage. How much energy do you regularly consume? Your energy usage is typically listed on your utility bill, this is important to note.

The average residential 5kW size system cost per watt is between $3 and $5. This results in system costs of $15,000 to $25,000 range. Despite this number, this is the cost before federal tax credits and incentives.

After the tax credits and incentives, the cost of a 5.76kW system in the United States will range between $10,068 to $12,305. This is after claiming the 22% federal solar tax credit for installs during the 2021 calendar year. This leads to the average solar panel costing $2.49 per kilowatt-hour of solar installed.

Recommended Reading: Solar Water Heater For Home

How Much Does One Solar Panel Cost

One 150 to 300-watt solar panel costs $112 to $450 on average, or between $0.75 to $1.50 per watt depending on the type of panel, energy-efficiency rating, and size. Solar companies that purchase in bulk typically spend $0.75 per watt, whereas homeowners spend $1 per watt.

Most distributors only sell solar panels to local contractors at bulk wholesale prices. Hiring a solar installer will drastically reduce your overall equipment costs. These prices are for the panels only, additional fees for installation includes inverters, batteries, mounting hardware, wiring, and more.

Solar Panel Cost In Illinois By Cell Type

Solar panels in Illinois can be found in three types – monocrystalline, polycrystalline, and thin-film. Monocrystalline is the most common, efficient, and expensive. It is made from whole silicon crystals and has a matte black appearance that can be very attractive on a roof. It works best in direct sunlight. The second most common panel in Illinois is polycrystalline. These panels are less efficient than monocrystalline but less costly. They have a bright blue color that can be less attractive to some homeowners.

The third type is fairly uncommon in Illinois for residential applications. This is thin-film, and it tends to be more efficient in indirect sunlight but less efficient than monocrystalline panels. They are also less costly. Below are the average costs to install solar panels in Illinois for a 6 kW system using the three panel types.

You May Like: How To Register Sole Proprietor To Corporation

Additional Components To The System

If youre looking to install additional components while installing the solar panels, this will increase your cost of equipment but can decrease the installation costs. Whether youre planning to install a solar battery storage system or additional features like pigeon proofing your panels, it is best to club them with installing the panels, so that you can decrease the installation cost.

Average Cost Of Solar Panels In Illinois Per Square Foot

While solar panels are not typically priced by the square foot, there is some correlation between your home size and system size. Solar panels in Illinois cost $5.50 to $26.80 per sq.ft. Larger homes typically have higher energy usage and needs. They may have more occupants, larger electrical systems, and more appliances than smaller homes. However, you could have higher-than-average or lower-than-average energy needs in a larger home. You may also use a smaller system to offset costs or a larger one to collect more Solar Renewable Energy Credits to make more money off your system. This means you have a range of costs for each house size. Below are some of the most common costs associated with installing solar panels in Illinois based on your home size.

You May Like: Arlo Pro 2 Solar Panels

A Note About Pricing: Gross Vs Net Costs

Throughout this article , we usually talk about solar panel pricing in terms of gross cost, aka the cost before any solar rebates and incentives that can reduce the upfront cost of solar, or even get you some money back over time. For example, our cost per Watt figures throughout the rest of this article are always the gross cost. This is because solar rebates and incentives arent always available to everyone. Even the 30 percent federal solar tax credit isnt always available for everyone to take full advantage of you need to have enough tax liability to claim the credit.

Are There Any Disadvantages To Solar Energy

In most cases, the pros outweigh the cons, but there are disadvantages to solar energy:

• Energy is only generated in the sunlight, so a backup energy source is needed. Furthermore, houses that dont get a lot of sunlight cant properly utilize the technology.

• Purchasing a system often requires an upfront cost or a short-term loss in income.

• If you need a large amount of energy, youll need a lot of space to accommodate the solar panels.

• Although solar energy is much cleaner than traditional sources, it still impacts the environment. Transporting solar panels leaves a carbon footprint, and toxic chemicals are used in manufacturing.

Recommended Reading: What Can You Run Off Solar Panels

Be Wary Of Promises Of A Quick Payback

Some solar panel vendors promise a quick payback based on unrealistic power generation data and inflated potential savings. Here is a little information from neutral, credible sources that you can check for yourself.

Important notice:

Hydro-Québec recommends that you consult an engineer specializing in the field to assess your projectâs cost-effectiveness before purchasing a photovoltaic solar system. Hydro-Québec does not provide any financial assistance to customers enrolled in the net metering option or the self-generation without compensation plan.

What Are The Labor Costs To Install A Solar System

The rise in incentives and reduction in manufacturing costs is helping manufacturers to offer solar energy system at an affordable price. The solar energy system uses the suns energy to generate electricity. The panels contain photovoltaic cells that function in unison. The light that falls on the cells gets converted into usable energy. The panels then direct the energy to the inverter that converts into electricity. For example, a 6kW solar energy system costs around $ 18,000.

Don’t Miss: How To Change Roof With Solar Panels

How Solar Panel Installation Works

Solar installation is a straightforward process. Your solar company will handle most, if not all, steps. A representative will begin by holding a consultation to assess your energy needs and home design.

Matt Johnson, co-owner of Namaste Solar, says that a reputable installer should supply an itemized list of the costs for each aspect of the installation, including labor, permit fees, sales taxes, utility fees, the interconnection fee, and so forth. The installer should also include available tax incentives.

After that, your installer will design a system tailored to your homes specifications and handle required permits from your local municipality. Finally, they will install the system and conduct final inspections. This process can take up to 60 days to complete.

Watch our video below to get a better understanding of what the solar installation process entails.

What Are Renewable Portfolio Standards

Renewable Portfolio Standards, or RPS, are state mandates requiring that utilities generate a certain percentage of electricity from renewable sources. The RPS aims to increase the share of renewables in electricity generation and diversify energy sources. One of 31 states with RPS goals, New Jersey has the most ambitious RPS in the US. It requires 35% of energy sales to come from qualified renewable resources by 2025 and 50% by 2030. New Jersey’s RPS should expand clean energy technologies in the state and provide economic and environmental benefits.

Recommended Reading: Solar Panel Companies In Florida

Decide Whether Solar Is The Right Choice For Your Home

If you live in an area with high energy rates and a suitable solar rating, and if you can afford the initial investment, its worth installing solar panels on your home while the 30% tax break is in place for the good of the environment and your wallet. But don’t expect to eliminate your power bill overnight.

If you decide to purchase solar panels, shop around and search for incentives. Consider financing with a solar loan if youd rather spread out the cost over time. Keep in mind that you dont have to buy solar panels you can lease them, too. Leasing offers a lower upfront cost, though since you dont own the panels, they wont raise the value of your home, and you may not be eligible for incentives.

Going solar isnt the only potential way to save money. Learn more about what you can do to lower your bills.

Comparing The Cost Of Solar Panels Installation Across Different States

The cost of installing solar panels can vary significantly depending on the state. Some states have more favorable policies when it comes to solar energy, while others do not offer any incentives at all. Its important to research the different options available in each state before deciding which one is right for you.

Also Check: Por Do Sol Cork Flooring

Solar Energy Cost Per Kwh

Residential solar energy costs $0.08 to $0.10 per kWh on average, and commercial or utility-scale solar power costs $0.06 to $0.08 per kilowatt-hour. Prices include the Federal Solar Tax Credit and vary drastically based on the amount of sunlight and type of solar panels installed.

These figures represent the Levelized Cost of Electricity , which is the average revenue per unit of electricity generated that would be required to recover the costs of the solar panels over their life expectancy. Consult with solar installers to calculate savings.

Did You Know A Solar Roof Could End Up Paying For Itself Discover What Costs & Benefits To Consider When Going Solar To See All The Ways Youll Save

While solar panel systems may seem to have a high overall cost, solar energys long-term savings and numerous eco-friendly benefits far outweigh the system installation fee. Additionally, solar panels are low-maintenance, requiring almost no cleaning or repair costs over time.

Your specific solar cost will be different depending on your property, which makes answering, how much are solar panels? and the price of installation in individual cases challenging. Still, the average rice of solar panels and installing the equipment often ranges from $30,000 to $70,000 and depends on factors such as your homes square footage, the amount of shade you get, the roofs age, the system size, and more.

But with continually rising national electricity prices and the social movement to be more sustainable, many people are saving more than just dollars and cents with solar, but the environment with increased sustainability and energy independence.

But how expensive are solar panels for a household? Lets discuss what factors contribute to the true cost and total savings youll experience in the long run if you take on the initial cost of installing solar panels and treat it as an investment that will save money ear after year.

Electric Usage

Monthly Electricity Bill

View monthly electricity costs by state to determine your usage costs.

Account for Sunlight

Factor in Incentives

Buying vs Leasing

Diverse Financing Options

Get a Solar Panel Quote

Recommended Reading: How To Open A Sole Proprietorship Bank Account

Costs And Affordability: Dont Be Blinded By The Light

The main obstacle to the widespread use of solar panels in Québec is the substantial initial investment, combined with limited yearly savings. Here are a few examples of false promises made by some solar panel vendors in Québec and a few important points to keep in mind when deciding whether to go ahead with your project. Get informed!

Choosing And Order Your Equipment

The very first step in a solar installation is to choose your solar panels and inverters, and confirm with your installer so they can order it all for you. The two primary components youll need to evaluate for your system are solar panels and inverters. Durability, efficiency and aesthetics are the primary factors most homeowners will use to compare the various brands and types of solar panels and inverters . Learn more in our guide to choosing solar equipment or check out our list of best solar panels.

Also Check: Solar Panel Companies To Avoid

How To Calculate Solar System Size

Find your average monthly usage in kW, divide that by 30 then divide that number by 5.5 . This will give you the size of the array that youll need. Then you take your array size and divide that by the watt rating of a panel like a 455W panel to find out how many solar panels youll need.

Example:

• 900kWh average monthly usage / 30 days = 30kWh daily usage
• 30kWh / 5.5 average maximum production hours = 5454.54kWh array size needed
• 5454.54kWh / 455W solar panel rating = 11.988 solar panels needed so round it up to 12.

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.

Read Also: How Many Solar Panels To Generate 1 Megawatt

You May Like: How Much Does The Average Solar Panel Cost

Can You Buy Solar Panels And Install Them Yourself

Yes, you can install solar panels by yourself. If youre working your way up to a Smart Home Ecosystem by purchasing solar panels, power station, and other components, it makes sense to spread out the purchases. You might find it more affordable to buy a few solar panels at a time and install them yourself.

To install solar panels on a home roof, youll typically need the ability to drive lag bolts and navigate assembling prefabricated parts. Youll also need safe access to where you want the panels installed, which likely means getting onto your roof. If these steps sound manageable and youve got a day or two to spare, self-installation is well within reach.

Putting It All Together Your Solar Payback Period In Phoenix Arizona

If youve only looked at online quotes based on a 5 kW system and low cost per Watt, you may be surprised by the actual cost of solar in Phoenix. With a typical system costing closer to $25,000 than $12,000, many homeowners might assume its not worth installing solar in Phoenix.

The reality, though, is that a larger system at a higher upfront cost pays for itself very quickly. How? Because a system sized to meet your familys actual electricity use helps you save more on your utility bill each year than a smaller system that leaves you dependent on the grid.

Working out how quickly your solar array pays for itself in savings is a key part of the decision to go solar at home. Once you reach that magic point where savings have balanced out the upfront cost, your rooftop array will continue to generate truly free electricity for years to come.

Below, we offer a range of possible solar payback scenarios, assuming average electricity use but varying eligibility for rebates and tax credits, and at different rates of inflation.

Gross cost of a 5 kW solar array = $3.24/Watt x 5,000 = $16,200

Minus potential state tax credit = $1,000

Subtotal = $15,200

Federal tax credit of 30% = $4,560

Net cost of solar = $10,640

Cost of electricity = $0.1111 per kWh

Average electricity use in Phoenix = 14,000 kWh per year

Estimated cost of electricity for first 12 years = $21,337

Twelve-year savings = $10,668

Subtotal = $15,200

Recommended Reading: How To Get Solar Panels From Government Free