The Average Cost of a Whole House Solar System
What is the average cost of a whole house solar system? What factors play a role in the cost? This article will explore Inverter costs, Size of system, Tax credit, and more. Here is some general information to help you make the right decision. Read on to learn more! And, be sure to check out the links at the bottom of the page to get started! And, make sure to bookmark this page, as we will update it with new information regularly.
Inverter costs
The inverter costs of a whole house solar installation are about $1,000. A typical installation of 5.6 kilowatts costs $16,408, and a cheap inverter costs approximately $0.18 per watt. If you are looking to save money, DIY solar installation is the way to go. While you may not be able to save on the equipment alone, you’ll save on the’soft costs’ of hiring a solar installer, such as labor, sales, marketing, and real estate rentals. Similarly, inverter costs are not as high as those of the solar panels, which typically last 25-30 years.
The total cost of a whole house solar system can range anywhere from $15,000 to $25,000, depending on your location and the size of your solar panels. In general, the cost of solar panels has dropped over the last decade. A typical six-kW residential system has gone from costing nearly $44,000 in 2010 to about $15200 in 2019. The prices have decreased so fast that even a small home can afford one, provided its energy usage is lower than average.
Size of system
The size of a whole house solar system depends on several factors, including the amount of sun your home receives and the electricity you use. For Maine homes, a larger system would produce more power. The best panels are high-efficiency and rated higher, as they generate more watts and require fewer panels. Solar installation companies in Maine can recommend the right system size based on your home’s energy needs and location.
The average American household uses 10,649 kWh of electricity annually. To determine the correct size, look at your last year’s utility bills. Electricity usage tends to fluctuate throughout the year, so a small system might not be sufficient. In addition, larger systems may have higher feed-in tariffs, which are beneficial for a homeowner who exports excess power back to the grid. The key difference between the two sizes is the time it takes to install the unit.
Tax credit available
A tax credit for installing a whole house solar system is available for homeowners and rental property owners alike. The solar energy tax credit can equal 26% of the system’s cost, but only if the system is purchased with cash or a loan. A solar energy system is considered a qualified energy resource if it reduces the homeowner’s carbon footprint by at least 50%. While the tax credit isn’t available for all systems, the credits are worth up to 26% of the cost.
The federal tax credit, which is often referred to as the Investment Tax Credit or ITC, can reduce your federal income taxes by $1,000. To receive a solar tax credit, your system must be placed in service during the tax year and generate electricity for your residence in the United States. There is no definite definition of “placed in service,” but you should consider placing it in your home to see if you qualify for the credit.