How much for a solar panel system
The solar installation appears to be a no-brainer for many houses due to the escalating cost of electricity from traditional sources.
However, the exact cost of, as well as their ability to help you save money, is contingent upon a few important criteria. According to the Center for Sustainable Energy, installation and the system together might cost between $15,000 and $25,000 on average.
The location has a significant impact on electricity rates. According to year-to-date 2021 data from the US Energy Information Administration, the national average is approximately 13 cents per kilowatt-hour.
- Solar panel costs have decreased by 90% in the last decade.
- The entire cost of solar is determined by your location, energy use, and the type of solar you choose.
- In 2022, the average cost of photovoltaic s will be between $11,300 to $25,000 for a 5-kilowatt home solar system.
- While solar panel installation costs in the US can still be considerable, there are federal and state incentive schemes that can help offset them.
- Solar panels are among the most cost-effective investments you can make to reduce your power bills, reduce your carbon footprint, and increase the value of your property.
Here are six measures to calculate whether your savings will exceed the cost of solar panels.
1. Conduct an examination of your electric bill
Solar panels generate their own energy and can thus significantly reduce, if not completely eliminate, your monthly electricity expenditure. The higher your bill, the more likely it is that you will save money by switching. However, you should keep in mind that power rates and use — the two primary costs on your bill — are subject to volatility.
2. Determine the amount of sunlight you receive
More sun equals more energy produced and a greater opportunity to save with solar. Certain states, like Arizona and California, average more sunlight hours each day.
Your home’s direction toward the sun, the quantity of shade, and its roof type also affect a solar system’s performance. You may assess the efficiency of panels in your location by using the SolarReviews calculator. Enter your address and the average cost of your monthly energy bill.
3. Estimate residential solar panel cost
When estimating the entire price, consider how much energy you usually utilize — your usage is reflected on your monthly utility bill — and what size system will provide the quantity needed. Some tools, like the SolarReviews calculator, estimate the system size for you.
4. Look for incentives
The government provides homeowners financial incentives for installing solar panels as an alternate energy source. For example, a home federal tax credit allows taxpayers to claim 26 percent of installation expenditures for systems placed in service before Dec. 31, 2022. The credit dwindles to 22 percent in 2023 and expires starting in 2024, requiring an extension from Congress.
5. Keep an eye on trade policies
Changes in government trade policy also affect prices. In January 2018, President Trump placed a four-year tariff on imported solar cells and panels that started at 30 percent and was due to reduce 5 percent each year until February 2022. In 2020, the tariff rate for the fourth year was raised from 15 percent to 18 percent. The tariff resulted in a 16 cent per watt increase for the average consumer in 2018, which equated to an overall cost of $960 for a six-kW system.
6. Make the call
If you live in a region with high energy costs and an appropriate solar rating and can afford the initial expenditure, it’s worth installing solar panels in your home while the 26 percent tax benefit is in place — for the good of the environment and your wallet. But don’t expect to erase your power cost immediately.
Solar is going to save you a lot of money in the long term, though that being said it is a significant outlay. If you view it as an investment, you will have less trouble with the initial cost. The average solar system pays for itself in 3.5 years, and they come with a 25-year warranty.