What Are the Hidden Costs and Downsides of Going Solar?
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What Are the Hidden Costs and Downsides of Going Solar?
How Long Does It Take to Break Even With Solar?
How Long Does It Take to Break Even With Solar?
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Typical cost range: $27,000 &#; $32,000
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Solar panels cost homeowners an average of $31,460 but typically ranges from $27,000&#;$32,000 for a 2,000 square foot home. See which factors will impact your total cost.
Tamara JudeTamara Jude is a seasoned content writer with more than seven years of experience in research and content production. She specializes in the solar energy, home warranty, and windows categories. Her interest in home improvement began as a child, when she regularly completed home projects alongsid&#;
See full bio Roger HorowitzRoger is the Director of Go Solar Programs at Solar United Neighbors. He has been in the solar industry for more than three years after a decade of entrepreneurship. With a background in community organizing, Roger is dedicated to empowering communities to go solar.
Roger combines his passion&#;
See full bioSeveral factors impact solar panel prices, but our research found that the average solar system for a 2,000-square-foot home is roughly $31,460.* If that cost seems out of your budget, don&#;t worry&#;this figure is before applying valuable solar incentives that can shave off thousands.
Other factors, such as system type and size and your location, can raise or lower this price. Our guide looks at solar panel cost by panel type, home size, and state and includes ways to keep your expenses as low as possible.
*Cost figures in this article are sourced from EnergySage, ConsumerAffairs, and the National Renewable Energy Laboratory.
Key Takeaways
For a 2,000 square foot home, the typical cost range for a solar panel system is between $27,000 and $32,000. Despite this, most owners break even on their investment within thirteen years.
The federal solar tax credit allows you to claimon your income taxes, saving you thousands.
The average home 10-kW solar system requires between 19-24 solar panels to produce enough electricity to help run the home.
Use our expert research to learn more about your solar project
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When you&#;re ready to choose a solar provider, check out our guide to the best solar companies. We used a rigorous methodology to rate and review leading brands, comparing them on product selection and performance, service options, customer reviews, Better Business Bureau (BBB) rating, and more. Palmetto and Blue Raven earned top scores and have some of the most comprehensive solar warranties and best-rated custom support.
The average cost of a 10-kilowatt (kW) residential solar panel system is $31,460. That&#;s before using any solar incentives or rebates, which can reduce your expenses by several thousand dollars. We&#;ll talk more about this later in the article. Your total solar panel cost depends on a few factors: your system type, home size, location, payment selection, and any incentives you apply.
System Cost RangeAverage Cost Before Tax CreditAverage Cost After Tax CreditLow-end$25,960$18,172Average$31,460$22,022High-end$36,960$25,872Your solar panels will likely cost between $0.30 and $1.50 per watt. There are three main types of solar panels: monocrystalline, polycrystalline, and thin-film. Monocrystalline solar panels are considered top quality due to their efficiency and energy production, so expect to pay more for their high performance. You may also need to invest in monocrystalline panels if you have a smaller roof to get the most energy production out of the fewer panels your roof can accommodate. Despite their increased initial cost, higher solar panel efficiency can help you save money each month by lowering your utility bill.
If you have a larger roof, you may be able to buy more panels with lower production, such as polycrystalline panels, for a decreased cost. Your solar provider can help you determine which option is best for your home. Some provider options can cost more than others, usually in exchange for higher performance or additional features. The Tesla Roof is more expensive than typical solar panels, for example.
Thin-film solar panels are the most budget-friendly, but they don&#;t generate much energy, making them best for small solar projects, such as powering a shed or recreational vehicle (RV).
Panel TypeAverage Cost Per WattMonocrystalline$0.75&#;$1.50Polycrystalline$0.70&#;$1.00Thin-film$0.30&#;$0.70According to the latest U.S. census, the median size of a completed single-family home is 2,299 square feet. That house size requires more than 9,000 kilowatt-hours (kWh) of energy to power annually, requiring at least a 10-kW solar system. According to the data below, we estimate this costs between $29,410 and $34,353.
Home Size (sq. feet)Estimated Annual Electricity NeededRecommended System SizeNumber of Panels*Average CostAfter Tax Credit1,,710 kWh5-kW system13$16,002$11,,,420 kWh10-kW system25$29,410$20,,,775 kWh12-kW system31$34,353$24,,,130 kWh15-kW system39$39,338$27,537*Approximate, as number of panels will vary based on panel type.Solar panel costs vary from state to state, partly due to the area&#;s average electricity bill and solar suitability. For example, Hawaii pays the most for electricity, while Utah pays the least. Those in Hawaii stand to see bigger savings than those in Utah when going solar.
Here&#;s a look at what you can expect a 10-kW system to cost in your state and an estimated time to return on investment. Note that cost per watt may vary by system size. You can also review if your state has a tax credit available. States are ordered from the least expensive solar installation cost to the most expensive.
State10-kW System Cost Before Tax CreditFederal Tax Credit DeductionState Tax Credit DeductionAfter Credit CostAverage Cost Per WattTime to Return on InvestmentSouth Dakota$22,880$6,864N/A $16,016$2. years, 5 monthsAlaska$23,060$6,918N/A $16,142$2. yearsMontana$23,240$6,972N/A $16,268$2. years, 2 monthsNorth Dakota$23,240$6,972N/A $16,268$2. years, 1 monthsAlabama$23,510$7,053N/A $16,457$2.358 years, 2 monthsArizona$24,400$7,320$1,000$16,080$2.449 years, 8 monthsWyoming$24,590$7,377N/A $17,213$2. years, 6 monthsFlorida$25,300$7,590N/A $17,710$2.539 years, 7 monthsMississippi$25,310$7,593N/A $17,717$2. yearsHawaii$25,580$7,674$5,000$12,906$2.564 years, 10 monthsOklahoma$25,600$7,680N/A $17,920$2. years, 5 monthsNevada$25,700$7,710N/A $17,990$2. years, 7 monthsUtah$26,200$7,860N/A $18,340$2. yearsTexas$26,400$7,920N/A $18,480$2.649 years, 6 monthsNebraska$27,110$8,133N/A $18,977$2. years, 1 monthsOhio$27,500$8,250N/A $19,250$2. years, 3 monthsNorth Carolina$27,800$8,340N/A $19,460$2. yearsSouth Carolina$28,000$8,400$7,000*$12,600$2.807 years, 1 monthMissouri$28,200$8,460N/A $19,740$2. yearsArkansas$28,500$8,550N/A $19,950$2. years, 5 monthsDelaware$28,500$8,550N/A $19,950$2. years, 11 monthsWest Virginia$28,500$8,550N/A $19,950$2. years, 8 monthsKansas$28,700$8,610N/A $20,090$2. years, 11 monthsGeorgia$29,500$8,850N/A $20,650$2. years, 5 monthsNew Jersey$30,000$9,000N/A $21,000$3. years, 4 monthsIdaho$30,100$9,030N/A $21,070$3. years, 10 monthsMaryland$30,100$9,030N/A $21,070$3. years, 7 monthsVirginia$30,400$9,120N/A $21,280$3. years, 3 monthsOregon$30,500$9,150N/A $21,350$3. years, 6 monthsPennsylvania$30,500$9,150N/A $21,350$3. years, 1 monthsWashington$30,500$9,150N/A $21,350$3. years, 2 monthsCalifornia$30,600$9,180N/A $21,420$3. years, 11 monthsLouisiana$31,500$9,450N/A $22,050$3. years, 6 monthsIllinois$31,800$9,540N/A $22,260$3. years, 5 monthsKentucky$31,900$9,570N/A $22,330$3. years, 2 monthsConnecticut$32,000$9,600N/A $22,400$3. years, 7 monthsTennessee$32,300$9,690N/A $22,610$3. years, 11 monthsNew Mexico$32,800$9,840$3,280$19,680$3. years, 12 monthsMinnesota$32,900$9,870N/A $23,030$3. years, 5 monthsVermont$33,000$9,900N/A $23,100$3. yearsWisconsin$33,400$10,020N/A $23,380$3. years, 3 monthsNew York$33,500$10,050$5,000$18,450$3. years, 9 monthsMichigan$33,700$10,110N/A $23,590$3. years, 11 monthsColorado$34,400$10,320N/A $24,080$3. years, 5 monthsIowa$34,900$10,470N/A $24,430$3. years, 5 monthsMassachusetts$35,300$10,590$1,000$23,710$3. years, 2 monthsMaine$35,700$10,710N/A $24,990$3. years, 11 monthsRhode Island$36,100$10,830N/A $25,270$3. years, 5 monthsNew Hampshire$36,500$10,950N/A $25,550$3. years, 5 monthsIndiana$36,600$10,980N/A $25,620$3. years, 5 months*South Carolina offers a tax credit of 25% of the total system cost up to $35,000, with $3,500 being the maximum amount that can be paid out per year.Below, we&#;ve broken down solar panel cost factors by importance. Some factors impact up-front cost, while others impact overall cost by influencing return on investment (ROI).
Solar panels&#; cost is mainly based on the following factors:
Household electrical demand: This is the monthly electricity your household uses. Homes with mostly gas appliances use less energy than homes with electric ones. You&#;ll need a larger system to match your needs if you have high monthly energy consumption.
Panel quality: Your chosen equipment greatly impacts your electricity production. You&#;ll want to find theYour chosen equipment greatly impacts your electricity production. You&#;ll want to find the most efficient solar panels that fit your budget. More expensive equipment doesn&#;t always mean higher savings, but the cheapest option can sacrifice value. Here are some affordable solar panels we recommend
Panel type: Monocrystalline panels are typically more expensive than any other panel type.
Purchasing options: Customers can pay in one lump sum, take out a loan, lease, or enter into a power purchase agreement (PPA). Each option affects how much you&#;ll pay in the long run.
System size: The most influential factor in your solar system installation cost is the system size. The bigger the system, the higher the price tag. However, buying a residential solar system is similar to buying other products in bulk. A higher-wattage system has a lower average cost per watt. Thus, when you purchase a larger system, the overall cost is higher, but you have a lower cost per unit.
Tax incentives: Federal and state solar incentives can dramatically reduce solar costs.
Soft costs involved in solar panel installation include:
Amount of sunlight: The more daily sunlight your home receives, the more significant your potential savings. Homeowners who live in areas with year-round inclement weather or cloudy days will experience lower energy production and cost savings.
Labor: Labor costs vary by location and are more expensive in areas with a higher cost of living, such as big cities. Different solar providers also charge different prices. Labor is included in your initial quote.
Location: Solar panels cost more in some states than others, largely due to regional electricity costs. Peak sunlight hours are also a factor.
Permitting and interconnection: Required permits and local interconnection fees to the power grid will add a slight cost to your solar panel installation total.
Roof condition and size: Your roof&#;s type, age, and condition impact what type and how many panels you need and their installation difficulty. Roofs with a layout or pitch that makes arranging your solar array difficult or dangerous will impact what system you can purchase and the risk involved for the installers. If your roof is particularly old or in bad condition, you should replace it before investing in solar panels.
Solar batteries: Solar batteries store excess energy your system generates to use at night or during power outages. Your installer can advise you on how many solar batteries you need, if any, for the system size you purchase, but this is a hefty cost to keep in mind when budgeting your solar project.
From Our expert
Keith Lambert (30-year veteran in the Pollution Control marketplace, working to reduce emissions for a cleaner environment. He&#;s president of&#;Wiring to an existing circuit breaker box can be expensive depending on where your best bang for the buck is regarding sunlight and where your breaker box is in the house. If you have to go through concrete, multiple walls, floors, etc., it can increase the overall cost of the project.&#; &#;(30-year veteran in the Pollution Control marketplace, working to reduce emissions for a cleaner environment. He&#;s president of Oxidizers, Inc. , a company that provides industrial air quality solutions)
A single solar battery for a 8kW system costs $7,964, per a national benchmark report from the National Renewable Energy Laboratory (NREL). This cost varies by state, battery brand and quality, your battery&#;s inverter, how much battery storage you need, and if you need to upgrade or add a new electric panel. Not every situation calls for a backup battery, but it can be helpful to provide around-the-clock power and protection from fluctuating electricity rates according to the Department of Energy. If you&#;re getting a solar battery simply as a backup energy source if the power grid goes down, you likely just need to purchase one. If you want to go completely off-grid, you could need as many as 10 to fully power your needs.
The National Renewable Energy Laboratory conducted a study of national solar energy price benchmarks for . Using national averages, NREL calculated the typical cost of the components of a photovoltaic system, from panel to labor costs.
ComponentPercent of Total PriceEstimated Market Price*Module12.61%$3,273.25Inverter11.71%$3,040.09Structural8.84%$2,295.21Electrical12.4%$3,219.05Field labor6.65%$1,726.98Office labor25.94%$6,734.07Other21.85%$5,671.45Total:100%$25,960*National modeled market price percentages for an 8kWdc residential system from a study by the National Renewable Energy Laboratory (NREL).Solar panel installation requires a significant financial commitment, so companies offer different payment options to suit different budgets. Here&#;s an overview of the typical solar financing options offered by solar providers:
We surveyed 1,000 homeowners who received solar quotes and found that 52% of respondents did not move forward with installation because the panels were too expensive. However, there are a few ways to save on solar panels, namely federal, state, and local solar incentives that can save you thousands of dollars.
Various government programs help you lower the cost of going solar. The more homeowners who switch to solar energy, the less strain there is on the collective power grid. This means federal and state government agencies want to incentivize homeowners to switch to a more sustainable energy source.
Below are the most valuable solar rebates and tax credits to look into
Federal solar tax credit: TheThe federal tax credit lets you apply 30% of your total solar installation cost to your federal taxes. There&#;s no cap on its value, meaning for a 10-kW system priced at the national average of $31,460, you&#;d subtract $9,438 from your taxes. This reduces your system cost to $22,022.
Net metering: You could earn additional savings fromYou could earn additional savings from net metering , an incentive where you send excess energy back to the power grid for monthly electric bill credits. Net metering programs are offered on the state level or through certain utility companies in your state.
Property tax exemptions: Since solar panels boost home value (as much as 4.1%, according toSince solar panels boost home value (as much as 4.1%, according to Zillow ), they also increase your property taxes. These exemptions eliminate property taxes for a certain time frame or permanently, depending on your state&#;s legislation.
Sales tax exemptions: Some states exempt state or local sales tax from solar panel sales, helping reduce up-front costs.
Solar renewable energy credits (SRECs): Some states offer SRECS to help meet their renewable portfolio standards (RPS). These regulations require a certain percentage of generated electricity to come from renewable sources. Homeowners receive one credit for every 1,000 kWh of solar electricity their system generates. You can apply this credit to reduce your electricity bill or sell them for profit. SRECs are worth $300 or more in some areas. The average residential system may earn you several of these credits per year.
State tax credits: Like the federal tax credit, homeowners receive a percentage of their total costs back to apply to their state taxes.
Making the wrong decisions during the buying process can cause you to overspend. Here&#;s what to look out for to avoid excess expenses.
Our survey revealed that 94.6% of homeowners said installing solar panels was worth it, and most respondents said the installation reduced their energy bills. Although solar panels are worth the investment for many people, there are situations when they won&#;t benefit your home enough to justify the expense.
Solar is a balancing act between a hefty up-front cost and estimated savings. Given the right circumstances, solar panels pay for themselves over time. The average payback period for a solar system is six to 10 years. If you have access to SRECs and net metering, you&#;ll break even during this time frame and then generate additional savings.
Here are some considerations to gauge if solar is worth it for you:
Using solar power in your home reduces the need for costly fossil fuels and taps into a less expensive resource. Homes that use more electric-powered appliances will benefit from going solar.
Excess energy from your solar panel system can be stored in a solar battery or returned to the power grid. You can accumulate enough credits through net metering programs and SRECs to receive a monetary return. Check with your utility provider to see if it offers net metering.
Ask your solar installer which tax breaks they can help you obtain.
Houses with many obstructions, such as tall trees or surrounding buildings, don&#;t get enough sun exposure for panels to perform. You won&#;t see much benefit from going solar unless your home&#;s roof regularly gets hours of unobstructed sun. It&#;s also best if the roof is south-facing and has a slope that can hold a solar panel at a 15- to 40-degree angle.
our solar expert on who benefits
Mark McShane (a solar industry professional and entrepreneur. He owns&#;If your home is located in an area with low solar access or if your home is shadowed by trees or buildings for much of the day, you probably won&#;t make back the investment on the electricity you generate. If you already consume low amounts of electricity (or if you consume a high amount), switching to solar might offer smaller savings, and so require a longer payback period.&#; &#;(a solar industry professional and entrepreneur. He owns Skills Training Group , a company focused on producing high-quality solar technicians. He also runs Solar Panel Quote Online , a site that provides impartial advice and information to homeowners and businesses considering installing solar)
On average, most homeowners break even on their solar investment around eight years after installation. Determining your solar break-even point depends on a few numbers: the total system plus installation cost, any applied incentives, and your annual electricity bill savings. More expensive options, such as off-grid solar systems, are more expensive and take longer to break even.
Use the following steps to calculate your break-even point:
Let&#;s demonstrate this calculation: If your system and installation cost amount to $20,000, but 30% was deducted due to incentives, your first number is $14,000. Pretend your annual electricity savings is $2,500. Divide $14,000 by $2,500, and you&#;ll see that it takes just over five and a half years for you to break even.
As with any other home improvement project, there are some hidden costs and downsides to solar energy not often discussed.
Solar&#;s biggest hidden cost is if you include solar batteries with your system, which often run from $8,500&#;$10,000. The cost of a Tesla Powerwall battery is slightly higher, given how reputable the company and product are. Though you can opt out of installing a solar battery and its cost, many homeowners include it for backup power protection. If you decide to include one in you solar system, consider one of our favorite solar batteries.
Here are some other hidden fees and downsides to consider:
Our solar expert on hidden costs
&#;Solar panels, battery backup systems, etc. require routine maintenance. Solar panels need to have clean, clear paths for light. Tree limbs, leaves, sap droppings, dirt, and grime can all harm how much power you can draw from the sun. Being on top of [maintaining] the system [and its surroundings] is key to maximizing your savings and ROI.&#; &#; Keith Lambert
We consulted additional experts for insight into the benefits of solar energy, the affordability of solar panels, and advancements in solar technology. See their insights below.
Terrence L. Chambers , Ph.D.Donald and Janice Mosing BORSF Endowed Chair in Mechanical Engineering
Director of the Energy Efficiency and Sustainable Energy (EESE) Center
University of Louisiana at Lafayette
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What are the main benefits of using solar energy?
Solar energy is clean, quiet, and safe to use. If paired with battery storage it can provide backup power in an emergency. Many homeowners are interested in helping offset the pollution that comes with traditional power generation, so participating in solar energy generation, either with a rooftop solar installation, a subscription to a community solar program, or a solar program available from the utility company, allows these residents to help build a cleaner and greener world.
Do you think solar panels are getting more affordable?
The cost of solar panels has dropped by about 90% over the last decade, such that at the utility scale, in many locations in the U.S., solar energy is the least costly alternative for new electrical power generation. It now costs less to build a new solar power plant than to continue to operate a coal plant. For that reason, solar energy accounted for over half of all new power generation in the U.S. last year, outpacing even natural gas. The cost for a commercial or residential installation is higher simply due to economies of scale, but it may still be cost-effective under certain circumstances. A homeowner would do well to consult a solar energy professional regarding their specific situation.
What are your thoughts about the advancements in solar technology?
Recent advances in solar technology are leading to ever-higher efficiencies and lower costs. At some point in the future, we will reach a saturation limit where new solar, which is an intermittent, cannot be added to the grid without upgrading the transmission system or pairing it with energy storage. Further research is needed to help the US power grid adapt to absorbing a larger and larger share of renewable energy sources. I am confident that we can solve the technical issues and that we will continue to see a move toward cleaner electrical power generation over the next several decades.
Terrence L. Chambers, Ph.D., is the Donald and Janice Mosing BORSF Endowed Chair in Mechanical Engineering and the director of the Energy Efficiency and Sustainable Energy (EESE) Center at the University of Louisiana at Lafayette. He is the author of more than 70 peer-reviewed publications and has been awarded more than $57M in externally funded research grants. Chambers serves as a member of the Governor&#;s Climate Initiative Task Force. He is a registered professional engineer in the state of Louisiana.
Mark Z. Jacobson, Ph.D.Director of the Atmosphere/Energy Program and Professor of Civil and Environmental Engineering
Stanford University
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What are the main benefits of using solar energy?
Are you interested in learning more about FAQ of solar panels? Contact us today to secure an expert consultation!
Installing solar photovoltaics (PV) on your roof reduces the electricity you need to import from the grid, particularly during times of high electricity prices, in the afternoons. This becomes even more beneficial when you convert your natural gas air and/or water heater to electric heat pump air and/or water heaters (which use one-fourth the energy as gas), your gas stove to an electric induction cooktop, and your gasoline car to an electric car. Solar PV also eliminates air pollution from fossil-fuel or bioenergy electricity generation. Also, installing solar PV on your roof, particularly in new homes, may avoid the need for expensive roofing material. Rooftop PV also cools your home during hot summer days by absorbing 20% of the sunlight and converting it to electricity.
Do you think solar panels are getting more affordable?
Solar PV panels have dropped in cost substantially during the past 10 years. At the utility scale, solar PV is half the cost of new natural gas or coal. On commercial buildings, it is also less expensive than the cost of fossil fuels. On individual residential buildings, PV cost has declined as well, but its savings are enormous because PV avoids the need to import high-cost electricity in the afternoon to your home and the cost of transmission and distribution. Solar PV on your roof also allows you to keep your lights on during a blackout on the grid if you also purchase a battery to store PV electricity. The best overall strategy for a homeowner in terms of saving lots of money over the long run, eliminating air pollution in your home, and supplying your own electricity and heat in a blackout is to electrify everything in your home and provide the electricity with solar PV and store the electricity in a battery. There is no need for two forms of energy in your home. That just increases the money you spend.
What are your thoughts about the advancements in solar technology?
Solar PV technologies continue to improve, resulting in the continued decline in PV prices. This holds true also for all electric appliances in an all-electric home: electric heat pumps for air and water heating and air conditioning, electric induction cooktops, electric heat pump clothes dryers, LED lights, and electric vehicles, for example.
Mark Z. Jacobson, Ph.D., is director of the atmosphere/energy program and professor of civil and environmental engineering at Stanford University. He is also a senior fellow of the Woods Institute for the Environment and of the Precourt Institute for Energy. His career focuses on better understanding air pollution and global warming problems and developing large-scale clean, renewable energy solutions to them. He has published six books, including his latest, &#;No Miracles Needed,&#; and more than 185 peer-reviewed journal articles. He is ranked as the No. 1 most impactful scientist in the world in the field of meteorology and atmospheric sciences and No. 6 in the field of energy among those first publishing past .
Juan-Pablo Correa-Baena , Ph.D.Assistant Professor and Goizueta Junior Faculty Chair in the School of Materials Science and Engineering
Georgia Institute of Technology
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What are the main benefits of using solar energy?
There are four main benefits: First, solar energy lowers energy bills in the long run by producing electricity from solar light. The initial cost of installation is recovered after a few years, depending on how much sunlight the panels receive. Second, the panels help keep your house cooler in summer as they absorb most of the light that turns into heat and convert it into electricity. Third, solar panels provide your house with an off-the-grid solution in case of power outages. This means that your panels do not rely on long-range transmission lines and can provide electricity even during natural disaster events. Finally, producing electricity from solar panels lowers your carbon footprint and helps alleviate our impact on the climate and environment by producing clean energy without toxic fumes and without emitting carbon dioxide.
Do you think solar panels are getting more affordable?
Yes, they are. Solar panels are becoming increasingly more affordable as economics of scale push prices down. Large manufacturing facilities are continuing to increase the supply of the panels and this lowers costs. In addition, federal investments in this area, through the Inflation Reduction Act (IRA) and other incentives, are bringing manufacturing facilities to the U.S., which helps increase the supply and lower costs.
What are your thoughts about the advancements in solar technology?
We need to increase solar panel efficiency so that we can produce more power over smaller areas. This is an area of research my group is spearheading. We are trying to develop panels that have two or more devices on top of each other to increase the amount of power per area of a cell. We are developing new materials and devices to achieve this. These advancements will also have an impact on cost, as we will be able to extract more energy for a smaller footprint and that saves money on space, whether they are deployed on a roof or in a field.
Juan-Pablo Correa-Baena, Ph.D., is an assistant professor and the Goizueta Junior Faculty Chair in the School of Materials Science and Engineering at the Georgia Institute of Technology. At Georgia Tech, his research group focuses on the development of next-generation solar panel materials to complement or augment existing silicon-based solar panels. His research program at Georgia Tech has attracted funding from NASA, the National Science Foundation, the Department of Energy, the Department of Defense, and industry partners. His work has been cited more than 35,000 times, making him a top-cited researcher in the world as recognized by the Web of Science Group Highly Cited Researchers (since ) and Nature Index Leading early career researcher in materials science ().
Dave James , Ph.D.Associate Professor and Director of Solar and Renewable Energy Programs
University of Nevada Las Vegas
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What are the main benefits of using solar energy?
Solar panels on a private home can generate electricity in the summer months during times of peak demand and associated high rates and reduce the homeowner&#;s electricity costs. Additionally, solar panels can usually offset some portion of non-renewable generated electricity and thereby reduce fossil fuel consumption and CO2 emissions.
Do you think solar panels are getting more affordable?
In some states and utility service areas, because of continued increases in efficiency and life span of flat-plate solar photovoltaic panels, lifecycle costs are now competitive with costs for other forms of electricity. However, homeowners should check with their local utility and with a reputable solar designer/contractor to find out if any connection charges or net-metering charges would be applied to their rooftop installations that might reduce the cost advantages.
What are your thoughts about the advancements in solar technology?
Photovoltaic panel efficiencies have continued to steadily improve over the last two decades, and their life spans are now up to twenty years. When combined with improvements in battery storage technologies and inverter efficiencies, solar photovoltaic power is now a practical, cost-effective, low-environmental impact option for both homeowner-scale, commercial-scale and utility-scale installations that can offset greenhouse gas emissions and reduce the environmental impacts of fossil fuel extraction. If your house rooftop is oriented correctly and not shaded by trees or other buildings, or if you have sufficient space for a ground-mounted installation, solar technologies for electricity generation are a practical, reliable, and cost-effective option for generating power and reducing environmental impacts.
David E. James, Ph.D., is the associate professor and director of solar and renewable energy programs at the University of Nevada Las Vegas (UNLV). He is also licensed as a civil engineer in Nevada. Dave coordinates plans of study for students of UNLV&#;s solar and renewable energy minor and graduate certificate programs and has published research in solar distillation.
Cordula Schmid , Ph.D.Associate Professor
University of Massachusetts Lowell
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What are the main benefits of using solar energy?
Solar energy is a sustainable and renewable source of energy, which helps to reduce reliance on finite fossil fuels and decreases greenhouse gas emissions. Many users find their electricity bills are lower than before and remain lower over longer periods of time, as solar panels can generate electricity for 25 years or more. Solar energy systems are low maintenance and can be installed in various locations, providing energy independence and resilience during power outages. Additionally, solar energy can create local jobs and stimulate economic growth in communities.
Do you think solar panels are getting more affordable?
Solar panels have become significantly more affordable over the past decade. The cost of solar panels has decreased by about 70% since , primarily due to advances in technology, increased production efficiency, and economies of scale.
What are your thoughts about the advancements in solar technology?
Advancements in solar technology have been remarkable and continue to drive the adoption of solar energy worldwide. Improved efficiency and durability of solar panels mean more electricity can be generated from the same area of panels. Innovations in energy storage, such as batteries, capable of storing excess energy for use when the sun isn&#;t shining, are making solar power more reliable. Additionally, developments in flexible and transparent solar panels are expanding the range of applications, from integration into building materials to use in portable electronics. These advancements are crucial in making solar energy a widespread source of renewable energy.
Dr. Cordula Schmid has been an associate professor at the University of Massachusetts Lowell since September , where she is the director of the Photovoltaic Prototyping and Testing Lab and the associate director of the Center of Energy Innovation. Her research focuses on the development of reliability testing for specialty solar PV applications. Prior to joining UML, she was a member of the PV Technologies team at the Fraunhofer Center for Sustainable Energy CSE since and managed that team since . She focused on the reliability and electrical characterization of solar PV modules. From &#;, Cordula served as a member of the scientific staff at the Fraunhofer Institute for Mechanics of Materials IWM in Freiburg, Germany, where she worked with domestic and international solar industry clients onsite to develop methods to increase production yield during solar cell processing and module fabrication. She obtained her Doctor of Engineering from the Karlsruhe Institute of Technology in Germany in the area of breakage losses in silicon solar cells.
Although solar panels require a significant investment, they provide future financial and environmental benefits. Many factors, such as the panel type, your climate, and your energy needs, influence your final costs and whether a solar investment is worth it. Apply for federal and state incentives to help lower your system costs and leverage your potential long-term savings.
We recommend getting quotes from at least three solar companies for the best rates. Compare equipment quality, customer reviews, financing options, warranties, and pricing.
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A 2,000-square-foot house will likely require a 10-kW solar panel system, costing an average price of $29,410.
A typical solar panel costs between $200 and $315, but price is impacted by panel quality, brand, type, and size.
According to EnergySage, a household with an average monthly energy bill of $150 can expect roughly $20,166 in electricity savings over 10 years. The higher your monthly energy bill, the more savings you stand to accrue over time.
The average house in the U.S. requires a 10-kW system to power it, or roughly 24 solar panels.
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According to our solar experts, solar panels cost about $19,000 to install in the United States, on average. While the price tag seems steep, incentives and payment options help make the cost of going solar easier to manage.
The total cost of a solar installation depends on your location, energy usage, and even the type of equipment you use! Our team of experts put together a complete guide of everything you need to know about solar panel cost so you can decide if solar is right for you and the best ways to save money when going solar.
Learn more about solar panel costs from solar expert Ben Zientara in our video below!
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Most people will need to spend between $16,500 and $21,000 for solar panels, with the national average solar installation costing about $19,000.
Most of the time, you&#;ll see solar system costs listed as the cost per watt of solar installed so you can easily compare prices between quotes for different system sizes. The average cost per watt of solar is $3.00 per watt, but you may get some quotes that are slightly higher or slightly lower than average.
Beware of extremely low solar prices. You want to be cautious of installers selling solar panels for under $2.60 per watt, as you may run the risk of getting a low-quality installation or sub-par customer service. Extremely low solar prices can be a sign of a solar scam. Charging way below average isn&#;t sustainable, and the solar company could go out of business before the 25-year lifespan of your system is up.
Solar panel installations don&#;t cost the same in every state, primarily due to differences in labor rates. The cost of solar panels also varies with the climate, household energy consumption, permitting and code requirements, and other market conditions.
The following table outlines the average cost of solar panels in all 50 states:
When you install a solar energy system, you&#;re getting more than just solar panels on your roof. Multiple pieces of equipment, such as racking, wiring, and inverters, must be installed so the solar panels can power your home.
There are also a number of costs that ensure your system is installed correctly and that the solar company can operate. The following pie chart shows the different parts of a solar installation and how much they cost:
Soft costs include things like the company&#;s customer acquisition costs, permitting and interconnection costs, and general company administration overhead costs. Hopefully, these soft costs will decrease as solar becomes more popular in the United States and the solar industry becomes more efficient.
Believe it or not, solar panel installations are cheaper than ever. Ten years ago, a residential photovoltaic system would cost more than $50,000. According to price data from the National Renewable Energy Laboratory, prices have dropped by over 60% since ! Despite being cheaper, the technology has only gotten better. Most solar panels today have efficiency ratings between 19% and 21%, a 48% increase from efficiency ratings in .
Each home is different, so how much you need to pay for a solar panel system will vary. Here are a few main factors that will influence a solar system&#;s total cost:
While the biggest cost you need to be concerned about is your solar installation, there are some hidden solar costs that aren&#;t often spoken about:
Even though solar panel systems are cheaper than ever, they&#;re still a substantial investment. But, there are a few ways to save on the cost of a solar installation, like the federal solar tax credit, local incentives and rebates, and getting quotes from multiple installers. Let&#;s look at some of the ways you can make a solar installation fit your budget:
The solar tax credit, sometimes called the investment tax credit (ITC), is a nationwide solar incentive that homeowners can take advantage of if they have taxable income and install solar panels. The credit is equal to 30% of solar installation costs and directly reduces federal income tax liability.
Although the federal tax credit is the only nationwide solar incentive available, there are a number of state and local rebate and incentive programs. Some of the best states for home solar are ones with these local incentives.
There are a number of solar incentive types, from upfront rebates based on the size of the system to performance-based incentives like Solar Renewable Energy Credits (SRECs), where you earn money for the kilowatt-hours of energy your solar system generates. A few states also have their own tax incentives that can be combined with the federal tax credit.
If you have a tight budget but installing solar is something you really want to do, you can install fewer solar panels and only cover a portion of your energy needs. Your payback period may be longer, but if solar is something you're passionate about, this is an option!
DIY solar installations have the potential to save you money when going solar because you don&#;t have to pay for labor and other overhead costs. But, we don&#;t recommend installing home solar panels yourself.
While saving on the upfront costs is nice, installing solar panels can be dangerous. You&#;re dealing with electrical equipment on a roof - a task best tackled by trained professionals. Plus, navigating the required permitting and interconnection requirements can be a nightmare, especially if you don&#;t have prior experience. Your utility company might not let DIY installations be connected to the grid at all!
Aside from safety, DIY solar installations might not qualify for certain incentives and might void solar equipment warranties. You could even void your roofing warranty! Unless you really know what your doing - we don&#;t think the DIY savings are worth all of the potential risks.
Much like a DIY installation, used solar panels can save you money when going solar. But this is another road we don&#;t suggest taking.
Used solar panels won&#;t perform as well as new solar panels, so you&#;ll likely need more to produce the electricity you need. You&#;ll also run into warranty issues - most solar equipment warranties are voided when it is uninstalled and moved to a new location.
We would shy away from used solar panels if you&#;re trying to run your home on solar. But, if you&#;re looking for something for an RV, a solar generator, or to run something like an off-grid garage, used panels are a great option.
One of the most effective ways to get solar panels at the best price possible is to get more than one solar quote. A study conducted by the National Renewable Energy Laboratory suggests that consumers benefit from getting multiple quotes.
Instead of getting one quote and signing a contract, comparing solar quotes allows you to get a better understanding of the pricing and products offered in your area, and find the right one for your needs.
Cash purchases provide the best long-term savings but require you to have all that cash when you purchase the system. If you&#;re like most of us and you don&#;t have thousands of dollars lying around to buy solar panels in full - don&#;t worry. There are a few solar financing options that can help with the burden of upfront solar costs.
Solar loans will increase your price per watt. The average cost for solar panels financed with a solar loan is between $3.80 and $4.25 per watt because of financing fees. Don&#;t be surprised when you get a quote that seems high if it includes a solar loan!
Solar panels save homeowners an average of $1,500 per year on their utility bills. With these kinds of savings, a solar system can pay for itself in as little as 12 years. That means over a decade of free energy!
Your solar savings will largely depend on the size of your system, the total cost of your system, the net metering policy in your area, and local electricity prices. In places like Massachusetts, you can break even after just 6 years because of high electricity rates!
For most homeowners, solar panels are a worthwhile investment. Despite the high initial cost, solar panels guarantee savings on electricity bills and reduce your reliance on your utility company. With electricity rates higher than ever - and getting even higher every year - you can stand to save thousands of dollars, all while using clean energy!
But, we won&#;t lie to you; solar isn&#;t right for everyone. If you already have low energy costs, your roof doesn&#;t face the right direction, or if it&#;s just not in your budget, a residential solar system might not be worth it for you.
Last year alone, SolarReviews helped over half a million homeowners connect with reliable solar contractors. When you find an installer through SolarReviews, you&#;re one step closer to getting the best solar panels at a great price.
We only put you in contact with the number of companies you choose, and you&#;ll never hear from more than four installation companies. Our partners are prevetted and know that homeowners who choose to find a provider through SolarReviews are serious about going solar, so they offer competitive prices.
The only way to truly know how much solar panels cost for you is by getting quotes from local companies!
A singular solar panel will cost between $200 and $350 and produce about 2 kilowatt-hours of solar energy per day.
No, you can&#;t get solar panels for free. There is a lot of deceptive advertising out there that can lead you to believe that you can get solar without paying anything, but the truth is that you will have to pay for solar one way or another. There are government rebates that help lower costs, and third-party-owned financing options require $0 for the installation, but you still have monthly payments! In very special cases, there may be low-income solar programs that cover all the costs of installing solar.
Off-grid solar power systems cost close to $55,000 to install. Off-grid installations tend to be more expensive because the home has no support from the grid, so more solar panels and large battery systems are needed to cover electricity needs.
A solar battery installation costs between $14,000 and $20,000, depending on the battery and the size of the system. For example, the price of a Tesla Powerwall is about $15,600.
That&#;s expensive, but there are solar battery incentives and rebates available. The price can exceed $30,000 if you&#;re goal is a whole-home backup. Most homeowners don&#;t need a solar battery.
The average home needs between 15 and 19 solar panels to cover all of its daily electricity costs. The higher your electricity usage, the more solar panels you&#;ll need to install. The wattage of the solar panels you choose will also impact how many you need to install.
There are three main types of solar panels: monocrystalline, polycrystalline, and thin film. Technically, monocrystalline panels are the most expensive of the three, but the difference is minimal they substantially outperform the other two types. It&#;s incredibly unlikely that you&#;ll get a home solar quote for thin-film or polycrystalline panels.
Actually, installing solar panels on a roof usually takes less than one day, but the entire process will take between two and six months. The exact timeline for installing solar panels varies quite a bit between locations because of site assessments, design requirements, inspections, and necessary approvals.
Yes, solar panels can increase home value! However, this usually is only the case for purchased systems, not ones that are financed through a solar lease or PPA. This does mean solar panels increase your property value, and thus your property taxes, but many states have property tax exemptions as an incentive to go solar.
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