How much does solar cost?

Invest in quality solar panels for your home can be a great idea, especially if you like to save money in the long run. Although every home and solar energy system is different, most American households recoup their solar investment within six to ten years thanks to efficient solar panel systems and financial incentives such as tax relief federal government that your solar plan can provide for you and your family.

The long-term savings are important, but what about the immediate costs? Even with prices dropping in recent years, solar panels can cost a pretty penny — and in this case, a “pretty penny” could equate to thousands of dollars. But with installation prices can vary depending on many factors, you may be wondering, “How much do solar panels really cost?”

We break down the estimated costs of solar power below to give you the best possible idea of ​​how much solar panels could cost you, as well as information on the federal tax credit and other incentives that could bring it down this final price.

How much do solar panels cost?

When you contact a solar energy company like Palmetto – one of the leading solar companies when it comes to high-quality, efficient solar panels – to get an estimate, the figure you get may be based on a number of factors.

These factors may include:

• The size and location of your home.
• Whether you rent or buy your solar panels directly.
• The amount of sunlight your solar panels are likely to receive.
• The price per watt of your solar panels.
• State and federal incentives that can lower your final costs – check the Database of State Incentives for Renewable Energy and Efficiency (DSIRE) to see what rebates or rebates your state offers.

So, how much do solar panels cost? Installation costs start at price per watt, with solar panels typically costing between $2.50 and $4 per watt. Larger homes may require higher wattage, so keep that in mind when discussing solar energy costs with a solar company.

That being said, the average costs for installing a solar system on a one-story, 2,000 square foot home can range from $10,000 to over $20,000 in total. Your quote may be higher or lower than the range provided, so be sure to get quotes from multiple solar companies to find the best deal for you in your area.

EnergySage is a great online resource that connects homeowners with local solar panel companies and can make it easier to compare quotes. EnergySage offers an online solar calculator for quick solar estimates based on your address and your average monthly electric bill.

You can also cover your solar installation costs with a power purchase agreement (PPA). This eliminates upfront costs in exchange for monthly payments determined by the amount of solar energy your panels produce. The downside to a PPA is that you won’t be eligible for incentives like the federal solar tax credit since you don’t own the panels.

How does the solar tax credit work?

You might find savings at the state and federal levels. Some states have better incentive programs than others: If you live in Massachusetts, your panels can turn a profit in as little as five years, for example. Always check state websites and resources to learn about possible savings or rebates to offset solar panel installation costs.

But what about the federal solar tax credit? This is a reduction that comes into play when you file your taxes and allows eligible homeowners to receive a 30% tax credit for solar panels purchased after 2022. For anyone wondering When installing solar panels, this credit will expire in 2035, but homeowners can count. on this tax credit for partial reimbursement of solar energy costs until then — although the tax credit will decrease to 26% in 2033 and 22% in 2034. For many, this tax credit solar could save thousands of dollars on the final cost of solar panels. .

So, who is eligible for this federal tax credit? Homeowners who have invested or are considering investing in a solar PV or photovoltaic system with an installation date between January 1, 2017 and December 31, 2034 may be eligible. A solar photovoltaic system converts sunlight directly into electricity; Nowadays, most solar panel systems are solar photovoltaic. Other requirements for the solar tax credit include:

• Your solar PV system must be located in a residential home in the United States.
• You own the solar photovoltaic system and do not rent your solar panels.
• Your photovoltaic solar system is new; The solar tax credit can only be claimed for the original installation of your equipment.

Are solar panels worth it?

Do you feel like you’re paying too much for your electricity right now? Solar panels can lead to significant savings on your utility bill, along with other benefits such as energy independence, a smaller carbon footprint, and increased property value – up to $20 for every dollar saved on on an annual basis.

A typical solar panel can last over 25 years, although some have a lifespan of up to 40 years. Thanks to common manufacturer warranties that cover those first 25 years, plus additional coverage options offered by solar companies like SunPower, which offer an impressive 25-year workmanship warranty for your entire solar PV system (instead of of just individual panels), solar panels can be a solution. a profitable and sustainable investment.