On average, solar panels cost about $16,000 nationwide. However, some solar systems can cost as much as $35,000 . The exact price a homeowner will pay depends on a number of variables, including geographic location, home size, and solar installation costs.
It's important to remember that investing in a solar system doesn't just cover the cost of the solar panels. Homeowners should also consider additional costs such as extra equipment, such as solar panels that store energy in the winter when there is little sunlight, and routine maintenance and upkeep costs, which can help extend the life of the panels. and your solar system. increase savings.
According to the Solar Energy Industries Association (SEIA), the price of solar panels has decreased by more than 50 percent over the past 10 years. A typical solar power system costs about $25,000, although actual costs vary depending on the size of the system, regional rates, and the solar installer you choose. The best way to find out the exact price is to talk to a local installer.
Solar financing options
The final cost will also depend on the solar financing route you choose. For homeowners who don't have the capital to invest directly in a solar system, there are other financing options to consider. However, some of them have weaknesses.
Fund yourself
Homeowners who choose to pay upfront (cash) for their solar system can expect a higher return on investment. They will avoid interest payments and qualify for solar rebates and incentives, such as a 30% solar tax credit when installing solar PV panels.
Solar loans
A solar loan can be a good option if you want to own your system, you'll still be entitled to the benefits, but you won't have to pay for everything upfront. These loans work like other home improvement loans, so you'll need to compare solar loan providers, rates, and other factors. However, keep in mind that accumulating interest rates of 4% to 7% over time can significantly increase your overall costs.
Solar lease and PPA
This option allows homeowners to rent the system instead of owning it. A solar lease is an agreement between a homeowner and a solar energy provider that allows them to install solar panels on their home at little or no cost for a fixed monthly fee. A solar PPA allows homeowners to purchase electricity from a solar company or third party at a fixed price. Although solar leases and PPAs are cheaper, homeowners are not eligible for rebates and incentives to save 30% on installation costs.
