How much does a solar panel cost?
The solar installation appears to be a no-brainer for many homeowners due to the rising cost of electricity from traditional sources. However, the true cost of, and their ability to save you money, is dependent on a few critical factors: efficiency, capacity, and location.
Solar panels range in price from $3,500 to $35,000, depending on the model and type. Whiles can help you save money on energy costs, it’s critical to understand the total startup cost of solar panels so you can budget accordingly.
Cost of a solar panel by Type
Monocrystalline solar panels
Monocrystalline solar panels (the most energy-efficient option) typically cost between $1 and $1.50 per watt, which means that outfitting a 6kW solar panel system (also known as a solar system) costs between $6,000 and $9,000.
Polycrystalline solar panels
Although polycrystalline solar panels are less efficient than monocrystalline solar panels, they cost $0.90 to $1 per watt, which means that outfitting a 6kW solar panel system would cost between $5,400 and $6,000, making it a more affordable option.
Thin-film solar panels
On average, thin-film solar panels cost between $1 and $1.50 per watt, which equates to a cost of between $6,000 and $9,000. Although thin-film solar panels are less expensive than their conventional counterparts, they require a lot of space and are thus primarily used in industrial settings.
How Much Money Do Solar Panels Save You?
Solar panels can help you save money on your electricity bills. When your panels are active, the electricity you use is completely free, and it can result in annual electricity savings of up to $1,450. Naturally, the specifications of each household are required in order to make an accurate estimation.
In general, the amount of money you can save with solar panels is dependent on a few factors:
- Your household’s electricity usage
- If you use your appliances during the day while your panels are operating,
- How efficient your solar panel type is
You can maximize your bill savings by running your appliances (washing machine, dishwasher, etc.) during the day while your solar panels are active. These small changes can add up to significant energy bill savings.
Additionally, the efficiency of your solar panels will affect how much you can save. Monocrystalline panels are more efficient (but also more expensive) than polycrystalline panels (but cheaper). The more efficient your system, the more electricity it can produce in a given period of time.
Solar panels can significantly reduce your electricity costs, carbon emissions, or both. The primary determinant of how much money a solar panel system will save you, in the long run, is the cost of electricity, which varies significantly by location.
If you live in an area with middle- to upper-tier utility rates, you can almost certainly count on a solar panel to save you money over time. Solar panels are typically worth the investment as long as the installation is done properly.