How Much Will You Save With Solar
The first question youre probably wondering if youre considering going solar is: how much money will you save? And for good reason! Afterall, solar is an investment so youll want to understand your payback period before making any decisions. Most property owners will break even on their solar investment in seven to eight years but as you start exploring your solar options, there are a few key questions you should ask to approximate your personal return on investment:
Do Solar Panels Work When The Power Goes Out
Most people think that solar panels will keep their lights going when the power goes out. Unfortunately, unless you add battery storage , they wont.
Solar power systems automatically go offline in the event of a grid power outage as a safety measure for utility workers who are repairing power lines.
The only way solar panels will power your home during a blackout is if they are paired with battery storage.
Solar Panels Quality And Cost
Top-quality solar panels come with a price premium. So heres a run-down of solar panel quality and cost:
- Dubious quality: Brands without a track record. These often produce less power than specified, especially as the years go on. Not worth the risk.
- Good quality: Good quality solar panels dont have to be super-expensive. You can also get decent warranty cover at a medium price.
- Premium quality: These cost around 250 extra per kilowatt and tend to have high efficiency and the best aesthetics. Premium panels are likely to be manufactured in Europe or South Korea, and come with long guarantees backed by the most reputable companies.
Read Also: Are Solar Powered Roof Vents Worth It
What Maintenance Is Required For Solar Panels
There is very little maintenance required for solar panels. It is recommended that you clean your solar panels once or twice a year to avoid dirt and buildup. However, this might not be necessary if your area gets regular rainfall or if your roof is steep, which allows debris to easily fall off.
It is worth checking to see that all junction boxes are sealed and watertight once every five years.
Because there is almost no maintenance required, you dont need to worry about additional maintenance costs.
Is A Diy Solar Installation A Good Idea
While you can install solar panels yourself, it may not be the best idea simply because of the potential danger involved. DIY solar installations let you save money on labor costs and you can even find DIY solar kits online, which range from $8,000 to $10,000.
However, the potential savings may not be worth the risk: youre working on a roof, plus youre completing electrical work. Not to mention, youll need to work out all of the permitting and planning yourself, which can be hard to navigate. You also run the risk of voiding out warranties and not qualifying for certain incentives.
So, while you can install solar yourself, we dont advise it. DIY may save you a buck, but going with a professional installer will save you a headache.
You May Like: What Is The Average Life Expectancy Of Solar Panels
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.
SOLAR PANEL COST PER WATT & KWH
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.
Cost Of Solar Panels Per Square Foot
The cost of solar panels to power your house are $4 to $10 per square foot. However, most installers estimate solar costs by the amount of energy needed, at $2.53 to $3.15 per watt before any tax credits or incentives.
Below are cost estimates based on home size. Overall costs depend on the type of solar panels, the size and design of your roof, and your energy needs.
COST TO INSTALL SOLAR PANELS ON HOUSE
Prices include 30% tax credit and reflect installation costs from solar contractors. Total costs depend on the location, installers experience, inverter, and other equipment.
You May Like: How To Get Out Of A Vivint Solar Contract
Solar Panel Cost For A 2000 Sqft Home
The average cost range for installing solar panels for a 2,000 sq.ft. home is between $15,000 and $40,000. Your costs are determined by how much electricity you use each day. They are also determined by how much you want to reduce your dependency on the grid. While the average cost of installing solar panels on a home this size is around $18,000, your costs can be much higher or lower. Having any type of electric HVAC system raises the number of panels you need. In addition, the amount of time people spend each day using electricity in the home also impacts total installation costs.
Price Of Equipment And Installation
What is the cost of solar panels for my home?
The price of solar panels varies widely depending on how many you need for your home energy consumption. The cost can also vary widely depending on the brand you choose. Think about it in terms of purchasing any other type of equipment: the high-end brands can be pricier, but they will last longer, produce better output, and will come with long warranties. These are all extremely important factors considering the price of initial installation and that these panels should last you over 20 years.
How much do solar panels cost for a 1500 square foot house?
The price for your solar panel system will vary depending on your homes energy needs and if youll want to provide your home with 100% solar energy. It also varies on the type of panel youre planning on purchasing. A very rough estimate for a typical 1,500 square foot home in the U.S. would include covering around $100/month for an average electric bill. This would mean between 15 and 18 solar panels.
How much do solar panels cost for a 2000 square foot house?
For a 2,000 square foot house, around 16 to 25 premium solar panels will supply 100% of your homes electricity needs. Again, discuss this with a Solar Sales Specialist in your area.
How much does it cost to install solar panels?
Here are a few things to be on the lookout for when getting a quote from solar companies.
Don’t Miss: Do Solar Panels Add Equity
The Cost Of Solar After Installation
Its not talked about as much, but one thing to keep in mind about the cost of a solar panel installation is the cost to keep and maintain that system. In general, solar panels require little to no maintenance over their lifetime, and you shouldnt expect to shell out much money at all once your panels are installed and operational. Theres always the off-chance something happens thats not covered by your warranties, however. You may need to trim trees as they grow, or hire a cleaner if you live in an area of the country with abnormal air pollution. Learn more about what you could run into post-installation in our article about the costs of solar panels after theyre installed.
Leasing Vs Buying Solar Panels
Solar leasing has become relatively popular as more people hope to save on their energy bills without having to pay a huge amount of money to purchase a solar panel system. However, leasing and buying both have pros and cons. You often pay more over time for solar leasing, with costs of between $50 and $250 a month. This makes the most sense if you have higher-than-average energy bills. This could be due to higher electricity costs in your area or because you use a lot of electric-based appliances, such as an HVAC system.
With leasing, monitoring and maintenance are included. This may give you peace of mind. With owning, you get a full return on your investment within 10 years. This can actually save you more money long-term than it would have with leasing.
You May Like: Is It Good To Get Solar Panels
Are Solar Panels Worth The Investment
Thanks to the lower-than-ever cost of solar panels and various solar incentives, solar panels are a cost-effective investment for the majority of homeowners that will provide an excellent return on investment.
Not only do they lower your energy bills, but you also get to power your home with clean renewable energy and reduce your dependence on your local utility company.
Even though spending up to $20,000 is daunting, federal incentives eliminate 26% of solar system costs after 1 year. There are also various ways to finance a solar system – from solar loans and leases to PPAs – so you can pick whichever option that works best for you.
Plus, solar panels provide significant utility bill savings in most areas. An average home solar panel system can save between $1,000 and $1,600 per year on electricity bills depending on the states net metering policy and the homes energy consumption.
Actual solar savings will depend on the system size, the cost of electricity, home energy usage, and what net metering policies are in place, but the average solar homeowner can expect their solar payback period to be between 8 and 11 years. After that, theyll be enjoying completely free solar electricity for at least 15 more years!
If youre still not convinced, you can use our solar panel calculator to find out how much solar costs and can save you for your specific home based on your average electric usage and prices in your area.
Solar Panel Installation Costs Per Kw
Considering that the average price of labor per watt is $0.50, the following chart reflects the average cost of labor for the various system sizes.
Cati O’Keefe, Expert Home Building & Sustainability Contributor.
The costs of your system break down into roughly:
- 49% equipment including solar panels, batteries, inverter, mounting hardware and wiring.
- 35% Installation permits and labor costs.
- 18% Operational costs including overhead, maintenance and monitoring.
When you are shopping around, do your research and get multiple quotes. You may be surprised by the difference in offers. This is owed to the significant chunk of “soft costs” integrated into the overall rate. As you can see above, the “other” category takes up about a third of your total project budget.
Buyers who explore the market thoroughly could save thousands of dollars on their installation by getting multiple quotes from both large and small installers. Expect a higher budget if the surface of your roof is more difficult to work with.
Compare Solar Panel Quotes for the Best Price
You May Like: How Many Amps Does A 200 Watt Solar Panel Produce
How Much Solar Power Will You Need
To find out your average energy usage, check your past utility bills. More precisely the last 12 months of your bills . Look for the total number of killowatt-hours you consumed every month.
Sum the numbers up and divide them by 12 to get the average. An easier way to determine your total energy consumption for the past year is to simply call your utility company and ask them to provide you the details.
Based on the data available from the U.S Energy Information Administration, in 2013 the average family home in the United States consumed about 900 Kwh of electricity per month. Thats 30kWh per day.
Obviously your household can consume more or less electricity depending on how big your house is, how many family members live in it, the appliances you have and how energy efficient you are.
How Many Solar Panels Will I Need
Its very important to get the right number of panels for your home as this is the starting point to find out how much a solar pv system might cost. The number of occupants in your household will influence the size of the system required as well as the size of your property.
Below is a list of the rough amount of roof space you might need to fit a solar PV system. These sizes are not strict guidelines and this is especially important to know as different manufacturers produce panels of slightly varying sizes. A skilled solar installer will be able to give you an estimate of the size and price of a solar PV system for your home. You can get free, no-obligation quotes through our simple form.
|Solar system size|
Get Free Solar Panel Quotes: Get quotes and compare prices.
Don’t Miss: Where To Sell Solid Wood Furniture
What Are The Costs Of Installing A Tesla Solar Roof
Teslas solar roof consists of a 70-micron thick, fully tempered glass top layer and another 150-micron thick textured protective layer to shield against minor impacts. The high-performance, low-cost roof tiles are four inches wide and have integrated photovoltaic cells embedded into them. Due to their design, these cells can generate up to 80 percent more electricity than traditional panels.
As for the overall price, youre looking at spending upwards of $39,017 according to Tesla estimates. This price includes what you can expect to save from local and national tax incentives. Obviously, the average cost is far higher on the front end than standard solar panels, and you must also purchase a Tesla Powerwall. However, it is an energy-efficient solution thats a great alternative to bulky rooftop panels.
Youll also end up saving more with the Tesla solar roof over time since these solar roof shingles cost $2.01 per watt, which is less expensive than the average solar panel cost nationwide.
Frequently Asked Questions About Home Solar Panels
Residential solar panels are one of the best ways to save money in the long term and create a positive environmental impact. Before you go solar, make sure to read through our key points to keep in mind about home solar panels:
How much has the price of residential solar dropped in recent years?What is the difference between solar for business and solar panels for home use?
A commercial solar project might power a town or a companys operations. As a result, they vary dramatically in terms of scale and cost. By comparison, residential solar systems tend to hold a consistent size . Thanks to their relatively small scale, rooftop solar panels for homes are an attainable energy upgrade that can generate serious electric bill savings for homeowners at any income level. Commercial solar, on the other hand, necessitates a major investment and a collective group of investors.
What are the two main disadvantages to solar energy?How much do solar panels cost for a 2,000 square foot house?
The average 2,000 sq. ft house has an estimated electricity need per year of about 9,420 kWh which requires around 29 panels. The total cost of the panels plus installation would be around $16,000 and $18,000. For more information, check out our blog that breaks down how many solar panels you would need for your home.
Why is my electric bill still high with solar panels?Do you really save money with solar panels?
Dont Miss: What Is Solar Pv System
Read Also: What’s Inside Solar Panels
Estimate How Long It Will Take To Pay Off Your Solar Panels
First, multiply your solar panel cost by 0.26, which is the tax credit you receive for installing your system. If you spend $20,000 on it initially, your tax credit is $5,200. That takes your initial investment down to $14,800.
Now, let’s factor in energy savings. Divide your initial investment by the $1,500 you typically pay the electric company per year that’s how long it’ll take for your savings to equal the amount you spend. Using the example above, you’d divide your initial investment of $14,800 by $1,500: The result is a payback period of just under 10 years.
That might seem like a long time on the surface, but solar panels can easily last 25 years.
You can further expedite your payback period by selling renewable energy certificates, or RECs. These are measured in megawatt hours of electricity that come from a renewable source. Electric companies must purchase some electricity from renewable sources, meaning you could save more by selling energy generated by your solar panels.
Energysage Is Here To Help You Find Solar Panels For Home
Whether youre still doing your research, or youre ready to contact a provider and schedule installation, choosing to invest in residential solar panels can be a daunting task. But, its important to remember that your investment will increase the value of your property and pay dividends in the long run. If youre considering the pros and cons of solar panels for your home, get the answer to your most asked questionis solar really worth it? And, if youre ready to go solar, start comparing quotes by signing up for a free account on the EnergySage Marketplace.
Recommended Reading: Can A Sole Proprietor Get An Ein
What Are The Benefits Of A Solar Panel
Solar power isnt all smoke and mirrors. There are many benefits you can reap from relying on solar. Solar power doesnt release harmful greenhouse gasses into the atmosphere. Its more cost-effective.
In addition, you can sell the excess power in your panels back to the power company. There are federal tax incentives and grants you can receive from transitioning your household to solar power.
Pro Tip: Use our guide on How to Install Flexible Solar Panels when upgrading your RV solar.