Solar Panel Affordability: How Much Can You Expect to Spend?
Did you know that the residential solar energy market United States is now a 50 state market? That’s right, there are now solar providers ready to install a system to bring alternative energy to your home anywhere in the country.
This solar panel affordability is great news for any homeowner looking to save on their utility bill over the long term. Having affordable solar panels at your fingertips greatly reduces the average cost of solar panels and installation.
But what is the cost of solar panels for homes in today’s market?
In this article, we will walk you through everything you need to know about the cost of installing solar panels on your roof.
The Ballpark Estimate
There are a wide variety of costs that go into a solar panel installation. Therefore, is not surprising that there is also a wide range of estimates that companies tend to provide. You can get by with a solar panel installation that only costs $5000 in total.
On the other hand, you can also reach for a high-priced maximum function solar system that will cost greater than $40,000.
On average, the cost of a solar panel installation comes out to $12,000 for most residents after federal tax incentives.
So what are the considerations you need to think about?
Federal and State Incentives
Through the 2022 calendar year, the tax credit for solar installations is still high at 26% of total system costs. This will continue to decrease over the coming years. Eventually, the credit will go away completely unless Congress decides to extend the credit once more.
Similarly, many states have issued solar credits so that making the jump to alternative energy is more enticing. Even better, some municipal programs in your local market may offer rebates that make the deal that much sweeter.
Depending on your electricity needs, you’ll need to shell out more money upfront to have a more efficient and often larger system. As a ballpark, $11,000 will pay for a 5 kW system in most markets. Similarly, a 10 kW system will cost a little over $20,000.
Experienced solar installers can help you determine which type of system will suit your needs best.
Types of Panels
Monocrystalline panels will be the most expensive in every market. Polycrystalline and thin-film panels will cost less but will have lower efficiency. You’ll need to think about which of these makes the most sense for your building and needs.
Modern-Day Solar Panel Affordability
At the end of the day, solar panel affordability will depend on where you live, your utility goals, and whether or not you can cash in on federal and state tax incentives. Each of these factors will weigh heavily into your financial decision. However, in most markets, it’s still an easy decision for those who are able to make the investment upfront.
If you enjoyed this article about the cost of solar panels for homes, please check out the other articles on our blog!