Average Cost Of A Whole House Solar System | How Much Does Solar Panel Installation Costs for the Average Home
How does solar panel installation work?
Solar panel installation is the process of installing solar panels that generate electricity to charge batteries or provide power directly. The main parts are:
– Installing on roofs and/or on the ground.
– Connecting any required wiring.
– Installing inverters and connecting to electricity grid or batteries.
It might be best to switch to solar energy now, but if you’re going to wait until later, you could face delays.
Before starting any solar energy project, you must first assess the site for potential obstacles and obtain the necessary permits.
How Much Do Solar Panel Installation Costs for the Average Home?
Depending on a number of different things including the overall dimensions of your house, how many solar cells you need, what kind of solar cells they are, whether or if an inverter is needed, how much electricity you want to produce, and if there are incentives available, it may cost you anywhere from $0 to $10,000 per month.
On average, a solar panel installation costs between $17,538 and $23,458, but most installations cost between $20,498 and $25,000.
Cost of solar panels per square foot
Solar panel costs vary from $4 to $10 for each square foot and they depend on the size and type you need.
Solar cost per watt
At this time, the average price of installing solar panels is .77 per watt. However, prices have been decreasing steadily since 2009 when they were approximately $4.00 per watt. It is estimated that by 2020, the average price per watt will be under $1.50.
Factors that affect solar panel installation costs
Size of a solar system
When thinking about solar panels, one thing to keep in mind is the size of the system you’re planning to install. Solar panels come in various sizes, ranging from small systems that can fit on rooftops to large ones that can cover acres. You’ll also find that each type of solar system comes at different prices, depending on what kind of energy savings you expect to get. For example, residential solar panels typically range between $20,000-$40,000, whereas commercial installations can run into hundreds of thousands of dollars.
The bigger your electricity consumption, the bigger the system needed to power your house, meaning that your solar panel installation will be more expensive; however, large panels usually offer a lower price per watt because they’re cheaper when purchased in bulk.
Your location
Solar panels depend on where you live. If you’re located in a state with good solar energy policies, then you may be able to save money by installing solar panels. However, if you don’t qualify for any government subsidies, then you might not be able to get the best price for solar panels.
Depending on where you live, solar panels cost anywhere from $0 to $10 per watt installed. States with high electricity prices tend to be expensive for solar installations.
Solar panels tend to be cheaper in some states than others because of differences in local energy prices and weather conditions.
Solar panel equipment and manufacturer
Solar power systems typically come at a price ranging from $16,000 to $25,000. However, there isn’t much difference between prices across different brands. A typical 6 kW system costs approximately $20,500 without any tax credits.
Jinko Solar has similar specs to LG Solar and Panasonic; however, they’re slightly more expensive than SunPower.
However, the solar power system costs also depend on the type of inverters used. You can lower the system costs by using polycrystalline (poly) solar cells instead of monocrystalline (mono).
Additional Solar Panel System Costs
Size, Shape, and Condition of the Roof
Roofing materials, shapes, and conditions play an important role in determining the price of installing solar power systems.
A bigger house means more space for installing solar panels and requires less mounting equipment than a smaller one.
If your house has an old leaky ceiling, you might be able to save some money by installing solar energy instead of replacing the entire structure. But if your house needs major repair or replacement, that could increase the overall costs.
Installing a new roof with solar cells is usually more expensive than replacing an old roof.
Shade and Sunlight Conditions
Your home’s location has a large impact on the price of a solar panel installation. Sunny areas produce more power than cloudy ones, so installing panels in sunny regions will result in lower electricity costs.
Federal Incentives and State Rebates
If you’re thinking of installing a solar panel system, there are several incentives and rebates available to help offset the cost.
You may be able to deduct up to 30% of the total costs associated with installing a solar power system. State and local governments often provide financial assistance through tax breaks, rebates, and/or grants.
Electricity Use
The cost of the system depends on the amount of electricity required by the system. One good method for estimating this is to take into account average monthly usage, which can be found in your electric bills. The average monthly usage in the United States is approximately 1,000-kilowatt hours (kW·h) per month.
Financing Options
There are a few different ways to finance your solar panel installation:
- Own the system outright.
- Lease the solar panels from a third party.
- Credit unions and local lenders offer financing options for those who want to own their solar panel systems.
Compare lease deals to another loan/financing offers so that you can get the best offer for yourself. Buying your own solar panel system may be cheaper in the short term, but if you’re going to be paying off the loan for years to come, it might not be worth it.
Types of Solar Panel Systems
Grid-Tied System
Solar panels are often installed on rooftops, where they receive direct sunlight throughout the day. These panels convert that light energy into usable electrical energy through photovoltaic cells. The number of factors determines how much energy is produced by any given rooftop installation, including the size of the roof surface area, the amount of sunlight received during the year, and the efficiency of the photovoltaic cells themselves. In addition, some states offer tax credits or rebates to homeowners who invest in solar panels.
Hybrid System
A hybrid solar system combines solar panels and a battery pack to give you the most power available from any type of solar system.
Off-Grid System
An off-the-grid solar power plant is the most expensive kind of solar power plant. It requires batteries to store electricity generated by the solar plants for later use. The cost of an unconnected solar power plant depends on the size and type of batteries used, but it is usually more expensive than other kinds of systems.
How Many Solar Panels Will You Need?
When you’re considering installing a solar panel system in your home, one of the first questions you’ll ask is “How many solar panels do I need?”
The answer to this question depends on a number of factors, including the size of your home, the amount of sunlight it receives, and how much electricity you use.
The average home in the U.S needs between 20 and 24 solar panels to cover its electric bills.
Pros and Cons of Solar Panels for Your Home
Here’s a closer look at some of the pros and cons of solar panels:
Pros:
- Solar panels can reduce your carbon footprint.
- Solar panels can help reduce your energy bills
- Solar panels are good for the environment and provide net metering opportunities when paired with other renewable sources or backup electricity.
Cons:
- Solar panels are expensive to install.
- Maintenance costs are relatively high once you’ve paid for equipment and installation costs.
FAQs
Is solar energy expensive?
Solar panels typically range from $20,000 to $30,000, but prices can be significantly lower if you purchase them from an installer who specializes in residential installations.
How much does one solar panel cost?
For example, a single solar cell costs between $2.70 and $4.00 to purchase and install. The cost of the entire installation depends on its size (measurable in watts), the type of panels you choose, the location of your house, and the efficiency of the panels.
Do solar panels work at night?
Solar power works best when there is direct sunlight. During the daytime, solar energy is most productive. However, even though solar power may not work well at night, it still produces some energy.
How long before solar panels pay for themselves?
Solar power systems take between seven and ten years to pay off their initial cost. However, they last for decades, so the savings can be enjoyed long after that initial expense.
Does solar increase home value?
Adding solar power to your roof can help boost the value of your property. People usually prefer homes with solar power because they’re willing to pay a bit extra for them.