For 2022, global solar installations will exceed 200 Gigawatts of capacity. Residential solar in Q2 alone topped a record 1,247 MWdc, according to statistics provided by the SEIA.
That’s mainly due to increased knowledge about the benefits of solar power, growing concerns about global warming, and strong federal backing of sustainable initiatives.
Solar can still be pricey, but the costs are falling all the time, and you might not know if you can afford it until you know the average cost of solar panel installation. Keep reading to find out about the cost of switching to solar, and if it’s worth it for you.
The Average Cost of Solar Panel Installation
The first question along your solar journey is always, ”how much does it cost to install solar panels?”. The real answer to this is the adage, “How long is a piece of string?”
In the US, the average solar panel installation cost is around $12,000 once you deduct the current federal tax incentives. The cheapest, smallest systems can cost as little as $5,000, while a high-end Tier 1 system can cost over $40,000.
Several factors can affect the cost of solar panel installation. These are:
🏠 Where You Live
Like most things, the cost of solar panel parts and equipment varies from state to state.
Different states also offer various savings, rebates, and tax exemptions for renewable energy. Go here to learn more about savings available near you.
⚡ Your Electricity Needs
Solar panels can only produce a fixed amount of electricity every day. The more electricity you need, the more panels you’ll need to install.
Generally, you can expect to pay around $2.51 and $3.31 per watt for your solar panel installation.
☀️ The Type of Solar Panels You Need
There are three main types of solar panels available nowadays. These are monocrystalline panels, polycrystalline panels, and thin-film panels.
Monocrystalline panels are the most efficient and also the most expensive. If your home receives bright sunshine for many hours a day, and you have low electricity needs, you can install cheaper polycrystalline panels.
💰 How You Pay for Your Solar Panels
Whether you pay cash or opt for a solar loan will affect your solar panel installation cost, too. When you take a loan, you must include the interest charges as part of your overall expenses.
Some states offer attractive low-interest loans for solar, and you can also look into other options like power purchase agreements, and solar leases, which allow you to save on your installation costs.
🚚 How to Choose a Solar Provider
Don’t let price determine who you work with on your solar installation. The best solar provider will help you save more over time by implementing a system that’s ideal for your circumstances.
They’ll explain your options clearly, and work with you to set up a solar system that works best for your circumstances.
The benefits you’ll enjoy with solar energy are far more important than the average cost of solar panel installation, in the long run. Not only will you save on your electricity bill, but you’ll also contribute to a healthier planet, and increase the value of your home in the process.
