How much do a solar panel cost | Solar panel wholesaler

How much do a solar panel cost

We’ve all heard how solar panels can help you save money on your energy bills. However, how much do they really cost?

Solar panels can significantly reduce your utility bills, particularly if you qualify for tax credits and live in an area where they are relatively inexpensive. If your electric bill is high, you could potentially save tens of thousands of dollars over the life of your solar panels. However, before you invest in solar panels, it’s a good idea to determine the total cost of ownership—including installation, monthly bills, and more.

According to the US Energy Information Administration, the average American household paid $117 per month for electricity in 2020. If you’re looking to save money on your home energy bills, you may want to consider solar energy as another option. However, solar panel installation entails some significant upfront costs, and it’s not always clear how much money solar panels will save you in the long run.

Learn everything you need to know about how much do solar panels cost and revolving factors by reading our guide.

Solar Panels’ Average Cost

Solar panels cost approximately $13,142, with average prices for a solar panel system in the United States for 2020 ranging from $11,411 to $14,874. This figure represents the estimated cost of installation after tax credits are applied. Solar panels cost approximately $2.96 per watt on average, with average prices ranging from $2.57 to $3.35 per watt.

  • Solar panels for residential use range in price from $11,411 to $14,874.
  • Commercial solar panels range in price between $50,000 and $500,000.
  • Solar carports range in price from $14,350 to $67,275.
  • Cost of removing and reinstalling solar panels: $1,500 to $6,000

Factors That Determine Solar Panel Costs

The total cost of solar panels is determined by several factors, including household electrical demand or energy consumption, location, panel type and size, labor costs, incentives, and the method of purchase.

Demand for electricity in households

This is the amount of electricity consumed by the household on a monthly basis. Homes with a high proportion of gas appliances will consume less energy than those with a high proportion of electric appliances.

Location

Solar panels are more expensive in some states than others, owing largely to the region’s high electricity costs. Another metric that is taken into account is peak sunlight hours.

Solar panel type

Monocrystalline panels are generally more efficient but also more expensive than polycrystalline panels. Typically, more efficient panels are required for homes with limited roof space.

The panel’s dimensions

A larger solar system will cost more due to the additional labor and equipment required. Larger solar energy systems are more expensive upfront but can result in greater savings over time.

Amount of sunlight

The more daily sun your home receives, the more money you could save.

Cost of solar panel installation

Labor costs vary by location, which can have a significant impact on the overall cost. Different solar providers and installers charge different rates for their services.

Incentives fiscal

The federal tax credit for solar energy is referred to as the ITC. The federal tax credit value for 2021 is set at 22%, down from 26% in 2020.

Final Words

Solar panels generate electricity approximately 30% cheaper than utility electricity in most locations. An average 8 kW solar system costs $15,000 and generates 11,000 kWh annually. Over the lifetime of the solar panels, this equates to 8 to 10 cents per kWh.

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