What is the Average Cost of Solar Panel Installation? (This much!)


When solar panels were invented, the installation price was out of reach for many people. However, over the past decades, solar panels have become readily available, significantly lowering prices. 

Data from Renewable Energy and Solar Energy Efficiency shows that the prices of solar PV panels have dropped by over 70% since 2014. The U.S. Energy information administration also indicates that the number of people switching to solar power has increased dramatically. 

You might wonder, what is the average cost of solar panel installation? Solar systems and installation costs between $12,000 and $35,000, depending on the model and type. Though the initial costs seem expensive for many people, they can save the money you spend on energy costs in the long run.

Several factors are responsible for the wide cost range, including geographical area, energy usage, size of the solar system, and your home’s sun exposure.  

Furthermore, solar panels have several benefits, including protecting the planet and the future of humanity.

Nevertheless, knowing how much you will spend on the initial costs or save before installing solar energy is essential. Read on to find out more.

If you are interested in exploring The Average Electric Bill With Solar Panels, I encourage you to check out this article.

What is the Average Cost of Solar Panel Installation
What is the Average Cost of Solar Panel Installation? (This much!) – solarixis.com

Solar Panels’ Average Cost

Generally, the national solar energy system is approximately 10.55 cents per kW/h. And home solar panels are usually sized from 3kW to 8kW before factoring in tax incentives and rebates.

Let’s break down what these figures mean to help you establish what solar installation could cost for you. 

Installing solar panels to a 1,500-square-foot home will approximately cost you about $16,500. However, the cost may change according to your electricity usage and exposure of your home to the sun.

The proximity of your home to the equator will impact solar quantity. Those near the equator will benefit more from sunlight than those far away. 

The table below shows solar panels’ average cost

Lowest cost$3,500
Average cost$16,000
Highest cost$35,000
The Table Summarizes Solar Panels’ Average Costs – solarixis.com

This table shows the general solar panel costs. However, different types of solar panels have different installation pricing. Let’s consider the different types. 

Solar Panels Cost By Type.

Solar panel PVs are divided into monocrystalline and polycrystalline panels. 

1- Monocrystalline Solar Panels

Monocrystalline solar panels are popular for their energy efficiency. They cost between $1 and $1.5 per watt, which means it will cost you between $6,000 and $9,000 to install a 6-kW solar panel system

2- Polycrystalline Solar Panels

They are not as efficient as monocrystalline solar panels and cost between $0.9 and $1 per watt. Therefore, outfitting polycrystalline solar panels will likely cost between $5,400 and $6,000. This means they are more affordable than monocrystalline solar panels.

You might enjoy reading: Polycrystalline Vs. Monocrystalline: What Are The Differences?

3- Thin-Film Solar Panels

Thin-film solar panel acts like monocrystalline solar panels, costing between $1 and $1.5 per watt. It will cost you between $6,00 and $9,000 to outfit a 6-kW thin-film solar panel. 

They also need a large space, making them ideal for industrial settings. The installation costs of most solar panels range from $15,000 to $30,000, but the price for each solar panel depends on location.

For example, solar panels are likely to cost more as they move away from the equator but cost less in sun-drenched regions. 

Solar Panel Installation Costs By Size

You can estimate your solar panel installation costs by considering the table below. How large is your installation square footage?

The number of panels you can install depends on your state’s weather conditions and how much of your electricity bill you intend to offset. Notice how this information is captured in the table below. 

The table below provides the range of panels a household may need and the associated cost. 

Square Feet For Your HouseNumber Of Solar Panels NeededTotal Cost Without Labor
1,50015-18$7,000-$9,000
2,00016-18$9,250- $12,000
2,50018-32$12,250-$15,00
3,00020-40$15,250-$18,000
The Table Contains The Range Of Panels a Household May Need And The Associated Cost – solarixis.com.

How much electricity does your home consume daily? In 2020, American households used about 10,715 kilowatt-hours (kWh), roughly about 893 kWh per month, according to the U.S. Energy Information Administration. If your home has a large installation space and can afford many solar panels, you will increase the amount of electricity you can produce in a day.

The more solar energy you produce daily, the more you will save on electricity costs. However, if you only want to produce a portion of your energy via solar and rely on the grid for the rest, you may not need to buy many solar panels.

This information will help you determine the number of solar panels you need to install. Consult a solar panel contractor, who will calculate your monthly kilowatt usage and divide it by the number of days in a month. 

Additional Costs: Besides purchasing solar panels, you will also want to add other costs for your solar energy systems to determine costs accurately. Consider a few additional costs that could impact the ultimate cost of your solar system.

Labor Costs: Labor costs may vary from one region to the other, the scale of work, and the number of solar panels to install. 

Solar Mounts: The cost of solar panels is also affected by the cost of racks that hold them on the roof.

Solar Inverters: Installing solar panels requires solar inverters to transform the direct current into alternating current usable in your home. These inverters will cost you some money to buy and install. 

What Is The Best Time To Install Solar Panels?

Winter is the ideal time for installing solar panels because the demand for solar installation services is low, so you will spend less. Interestingly solar panels can generate electricity even in cloudy or chilly regions. 

Besides being cost-effective, winter solar installation is efficient. During this period, solar installation companies have fewer jobs, meaning they will give more attention to your project and install your system faster. 

How Much Money Can Solar Panels Save?

On average, American save about $1,500 yearly by going solar or $37,500 over 25 years. However, for individual solar energy systems, these savings can range from $10,000 to $90,000 depending on solar government incentives, local taxes incentives, roof size, sunlight exposure, and local energy rates.

Although solar panel installation costs a considerable amount of money as an upfront cost, it will undoubtedly save you money in the long run. Your electricity bill will dramatically reduce over the solar panel’s lifespan, which is 25+ years. 

But by how much will you save from solar panels? The answer depends on factors such as the size of the solar system, how long the sun directly hits the solar panels, and the angle of your roof. It also depends on your local electricity rates. 

How much do you spend on electricity every year? Know your annual consumption to determine how much money installing solar panels will save. Most American households spend about $1,450 annually on electricity; however, sometimes, the utility rates increase by 2.2%.  

You can then utilize various online calculators to estimate how much you will save yearly. The calculator will request information such as your energy usage, location, and the average solar installation cost in your area. 

Remember that solar panels will only reduce your electricity bill in most cases. You will still depend on the grid system because solar systems depend on weather patterns and seasons. For instance, you may not produce enough energy for your household during the winter or rainy seasons. 

What Is The ROI On Solar Panels?

On average, solar panels increase a home’s value by 4.1% across the U.S, according to a Zillow analysis of homes across the country. In other words, adding solar panels to homes can potentially increase a home’s value, meaning that homes with solar-energy systems sold for 4.1% more on average than similar homes without solar power. 

In the long run, solar panels will result in a positive ROI by saving money on utility bills. However, if you intend to relocate, you can install solar panels on your roof to enhance your home’s resale value.

The analysis by Zillow shows that solar panels can improve the value of your home by 4.1%, meaning that adding solar panels provide a boost of $9,274 on a $226,300 home,

Every investor is interested in return on their investment. You can calculate the potential payback by determining the cost of installing the solar panel system and the amount you will likely save on monthly electricity bills. 

Return on investment tells you how fast your savings cover the initial costs. You will accrue a high ROI if the electricity rate in your region is higher and sunshine is abundant. 

You might also enjoy reading: Better Decoration With These 11 Best Solar-Powered Led Strip Lights.

Take Advantage Of The Net Metering

If you live in an area with solar net metering systems, installing solar panels can significantly reduce your electricity bill. In some cases, you may even have a negative electricity bill if you generate excess solar energy than you need. 

The excess solar energy runs through your meter to the grid, allowing you to pay only the net amount for the power you used from the grid. You can sell the excess energy to the local utility for money or reduce next month’s electricity bill. 

The Bottom Line

Installing solar panels can help you reduce carbon emissions and electricity costs, thus generating major savings. Knowing how much money you will save with solar panel installation is important.

The savings often depends on location, the amount of direct sunlight hitting the panels, the angle of the solar panels, and the number of solar panels installed on your roof.

You will save more if you live in regions with high electricity bills. If you have solar energy storage capacity, you can save even more since you can use the stored energy at night or during unfavorable weather conditions. In the long run, the solar investment is worth it!

 

 

Altiné

Hello friends, I am Altiné. I am SO excited you are here! I am the guy behind Solarixis.com. I am passionate about all things outdoors, running, reading, and self-reliance. I hope you find what you are looking for while visiting Solarixis.com.

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