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Solar panels can cost anywhere from $17,430 on the low end to $23,870 on the high end , with the national average cost being $20,650.* Solar panels are a significant investment. The cost of your project is influenced by many factors, including the panels you choose, your home's energy needs, and applicable state and federal tax incentives.
We've done extensive research on the top solar companies in the US and the industry as a whole. This guide outlines the important factors that influence the cost of solar panels, as well as the national average for a solar power system.
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*All cost data in this article is based on 2024 data from EnergySage, Consumer Relations, Home Advisor and Angi.
Average cost of solar panels
While solar energy prices vary depending on location, system size and other project variables, EnergySage data presents these numbers as national averages:
How much do solar panels cost in each state?
The cost of solar panels can vary depending on your state's electricity rate and access to solar technology. Check out the table below to get an idea of how much solar panels might cost in your state.
| State | Average cost per watt* | Average system cost 6 kW* | Average cost of federal tax credit |
|---|---|---|---|
Alabama | US$2.45 | $14,700 | $4410 |
Alaska | US$2.41 | US$14,460 | $4338 |
Arizona | $2.44 | $14640 | $4392 |
Arkansas | $3.06 | US$18,360 | $5508 |
California | US$2.86 | US$17,160 | $5148 |
Colorado | $3.44 | $20640 | $6192 |
Connection | $3.22 | US$19,320 | $5796 |
Delaware | US$2.75 | US$16,500 | $4950 |
Florida | US$2.58 | US$15,480 | $4644 |
Georgia | US$3.20 | US$19,200 | $5760 |
Hawaii | US$2.67 | US$16,020 | $4806 |
Idaho | US$2.93 | US$17,580 | $5274 |
Illinois | $3.16 | US$18,960 | $5688 |
Indiana | $3.63 | US$21,780 | $6534 |
Iowa | US$3.45 | $20,700 | $6210 |
Kansas | $2.39 | US$14,340 | $4302 |
Kentucky | US$2.34 | $14,040 | $4212 |
Louisiana | $3.17 | US$19,020 | $5706 |
Maine | US$3.45 | $20,700 | $6210 |
Maryland | $3.13 | $18,780 | $5634 |
Massachusetts | $3.54 | $21,240 | $6372 |
Michigan | $3.78 | $22680 | $6858 |
Minnesota | US$3.45 | $20,700 | $6210 |
Mississippi | US$2.64 | US$15,840 | $4752 |
Missouri | US$2.85 | US$17,100 | $5130 |
Montana | US$2.42 | $14520 | $4356 |
Nebraska | US$2.83 | US$16,980 | $5094 |
Nevada | US$2.60 | $15600 | $4680 |
New Hampshire | $3.61 | $21,660 | $6498 |
New Jersey | $2.95 | $17,700 | $5310 |
New Mexico | $3.39 | US$20,340 | $6102 |
NY | $3.48 | US$20,880 | $6264 |
North Carolina | $3.04 | $18240 | $5472 |
North Dakota | US$2.42 | $14520 | $4356 |
Ohio | $2.98 | US$17,880 | $5364 |
Oklahoma | US$2.62 | US$15,720 | $4716 |
Oregon | $3.02 | $18,780 | $5634 |
Pennsylvania | $3.06 | US$18,360 | $5508 |
Rhode Island | $3.61 | $21,660 | $6498 |
Caroline from the South | US$2.89 | US$17,340 | $5202 |
North Dakota | $2.39 | US$14,340 | $4302 |
Tennessee | $2.97 | US$17,820 | $5346 |
Texas | US$2.77 | $16620 | $4986 |
Utah | US$2.69 | US$16,140 | $4842 |
Vermont | $3.14 | US$18,840 | $5652 |
Virginia | $3.04 | $18240 | $5472 |
Washington | US$3.25 | US$19,500 | US$5850 |
West Virginia | US$2.92 | $17,520 | $5256 |
Wisconsin | $3.41 | US$20,460 | $6138 |
Wyoming | $2.57 | US$15,420 | $4626 |
Solar Panel Cost Breakdown
EnergySage estimates that the national average cost of a typical 6-kilowatt (kilowatt or 6,000 W) residential solar system is about $20,650, not including federal tax credits or local incentives . and the location of your system.
The total cost of a solar system includes the cost of solar modules , the price of which varies depending on the brand and type, installation effort, system size and accessories. The solar installation company charges a combination of labor costs and a price per watt for each solar panel.
*Based on June 2024 report.
Types of solar panels
The type of solar panel you order will affect the overall cost. Below is an overview of the three most popular types of solar panels and their average prices.
- Monocrystalline : Monocrystalline modules are considered the most efficient solar modules with an average efficiency of 24%. However, they are the most expensive. The average cost of monocrystalline solar panels is between $1 and $1.50 per watt . So a typical 6kW system costs between $6,000 and $9,000 .
- Polycrystalline. Polycrystalline panels are the more expensive option to begin with . However, their efficiency is on average 20% lower than that of monopanels. The average cost of polycrystalline solar panels ranges from $0.90 to $1 per watt , or $5,400 to $6 for a 6 kW system.
- Thin film solar panels. Thin film solar panels are less popular for residential solar systems . They typically cost between $0.70 and $1 per watt . That's a total of $4,200 to $6,000 for a 6kW system .
Job
Installation costs, including labor and permits, average about 25% of the cost of a solar panel system . For example, if you buy a 6kW monocrystalline solar panel system for $20,000 , the solar installation company will likely pay around $25,000 for the combined system and installation. Installing a larger system obviously increases labor costs.
System size
To determine the right sizing system for your property, there are several factors to consider: energy requirements, roof size and layout. You can usually use your monthly energy bill to determine how much energy you need to power your home. We'll talk about this in the next section. The size and shape of your roof or where you want to install the panels will also affect the system you can install. EnergySage estimates that a typical household needs an average of 19 panels to meet its electricity needs, which equates to a system of about 7 kW.
optional equipment
Home solar systems also typically require a battery to store energy and an inverter, which converts alternating direct current (DC) from the solar PV panels to alternating current ( AC). Most solar energy companies include these elements in the design of your solar system. However, if you are looking for specific brands of inverters or batteries, they can be expensive.
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Solar Incentives and Rebates
Most states offer solar tax credits and rebates that help buyers save money, encourage them to go solar, and make their homes greener. You can visit your state's Department of Energy website to find out what programs are available in your area, as well as websites such as EnergySage and the Solar Energy Industries Association (SEIA).
Common state-level solar incentives include:
- Renewable Energy Tax Credit
- Exemption from sales tax and property tax
- Solar Systems and Solar Rights Law
Locally, many utilities offer net metering programs , which allow solar owners to export excess energy generated by their systems to the grid and receive credits in return. If the system owner relies on the grid for cloudy days or nights, he can use his credit to pay his utility bills.
The biggest financial incentive is the federal solar tax credit (ITC). This federal credit allows solar buyers to deduct 30 percent of the total cost of the system from their income taxes in the year of installation. However, this loan is only for those who own their system, meaning they buy it outright or through a solar loan. Those with solar leases or power purchase agreements (PPAs) are not eligible to participate.
We recommend using the Database of State Incentives for Renewable Energy and Efficiency (DSIRE) to see if you qualify for solar rebates and state tax credits .
Other factors to consider when it comes to the cost of solar panels
In addition to the cost per watt of each solar panel, other factors affect the overall cost of a solar power system . Below we have listed some of the most important factors for you.
Energy requirements
Consider the actual cost of electricity , as switching to solar power can save you money on your utility bills . The larger your home and the higher your monthly energy bill , the more benefits you'll get from going solar. In some cases, a solar system can save a homeowner money on their energy bills.
On the other hand, if your electricity bills are already relatively low, you may not see enough savings to justify the cost of installing a solar home system .
Location
The location of your home plays a major role in how much you can save with solar panels. Using data from the Centers for Disease Control and Prevention (CDC), data analysis site Stacker determined that states such as Arizona , California , Colorado and Florida are the sunniest states in the world. . Information disclosure. The sunnier the country and the higher the price of electricity , the higher the return on investment in the country.
Roof type
You can use a solar system even if you don't live in the blue sky state. Most solar panel installers use photovoltaic (PV) panels, which can absorb both direct and indirect sunlight. However, these solar panels produce more electricity on pitched roofs, allowing for maximum solar gain. On the other hand, a flat roof requires the construction of a sloped platform, which increases labor costs and the overall cost of installing the solar system.
Additionally, roofs facing south, west or southwest are more exposed to the sun. For example, a home with less shade and a south-facing roof with a slope of 15 to 40 degrees will receive more sunlight. As a result, these homes receive and store more solar energy . On the other hand , a home surrounded by trees or located in a less sunny area, such as the Pacific Northwest, may not save as much money as a homeowner in Arizona or California .
The age and structural strength of your roof also affect the overall cost of installing solar panels. Repairing your roof or replacing roofing materials with backing panels will incur additional costs prior to installation, which will affect the overall cost.
Payment options
Solar energy providers offer a variety of payment methods that affect the profitability of your solar energy investment. Here are four payment options you can choose from most solar energy companies :
- Purchase: Prepaying for a solar system is the most cost-effective way to pay for a solar system. Not only will you avoid paying interest over time, but you will also be able to claim a federal tax credit on your next tax return.
- Solar loans. Solar energy companies understand that not all homeowners are willing or able to pay for their systems upfront , so they work with a lending company to offer loan options. As with all bank loans, your interest rate depends on your creditworthiness.
- Solar panels rental . Some homeowners can rent their solar panel systems. Under this agreement , the solar energy company remains the owner of the system and you pay a fixed monthly fee for the installed solar panels. This option is not as cost effective over time as purchasing or financing your own system because you are not eligible for state or federal incentives. However, avoid paying large amounts upfront.
- Power Purchase Agreement (PPA) . With a solar PPA, you pay virtually nothing for the actual installation of the PV system. Instead, you pay the utility company a monthly payment based on the amount of energy the system produces . Think of it like paying a regular electric bill . As with leasing, you do not own the system and therefore are not entitled to any tax benefits.
Is it worth using solar modules?
In most cases, solar modules make sense. By switching to clean energy, you save money and reduce carbon emissions, fossil fuel consumption and greenhouse gas emissions. However, solar panel prices vary depending on the family and location.
When deciding whether solar panels are right for you, there are several factors to consider, such as:
- Your Energy Use: If you have a small home, don't use many appliances, and tend to turn off the lights, you may not be using enough energy to invest in solar power. The cost of electricity in your area also plays a role. The higher the cost, the more benefits you will get from using solar energy.
- Payback Time: If your panels take a long time to pay off before you start enjoying energy savings, it may be best not to buy the system. Learn more about recovery time .
- Location and layout of your property: In areas with year-round sunshine, those that benefit most from solar panels such as: B. Roofs exposed to the sun.
- The size and dimensions of your roof. The best location for installing solar panels is the best location for most families as there is minimal interference with solar radiation. If your roof is very small or has an unusual slope to accommodate the number of panels required, purchasing a system may not be practical.
One thing that can make a solar panel successful can lead to increased wealth. US. The Department of Energy's National Renewable Energy Laboratory (Nrel) found that the dollar you pay for utilities adds $20 to the price of your home . If your solar system saves you $800 a year, that will add $16,000 to your home. Learn more about how to determine if solar panels are right for you .
The Hidden Costs of Solar Energy
Maintenance, energy savings and other costs are necessary to protect your system and get the most out of it. Typically they include the following costs:
- Cleaning: Your panels may need professional cleaning from time to time. There may be enough precipitation to protect your panels from debris. However, if you are in an area with fire, dust, or heavy pollen contamination, this layer of dirt can prevent your panels from functioning optimally.
- Insurance: Installing solar panels often goes hand in hand with renewing your home contents insurance. In some states, you will need special solar insurance in addition to your regular coverage.
- Maintenance: Solar panels require minimal maintenance. Most installers recommend visiting electrical panels every few years to check wires and connections. The cost of a professional interview is negligible, but you should be aware of it.
- Travel Tax: Most states waive property taxes for any additional costs associated with installing a solar system on your home. However, if you don't do one of the few things you do, your tax bill will increase.
- Repairs: Sometimes solar panels need repairs when a bad storm hits or you notice they are not working properly. If your insurance does not cover repairs, you will have to pay the costs out of pocket.
- Roofing : If your roof is old or damaged, you will need to repair it before installing the panel. If you do not want to install the panels in case of damage and the roof must be replaced for 10 years or less, you should carry out maintenance immediately before installing the panels. Depending on the state of your roof, it can be the highest or second largest hidden cost.
- A solar panel. Many homeowners also buy solar panels complete with their system. The solar battery saves additional energy and allows you to use this energy to get home at night, while turning off electricity or with a high electricity tariff.
- System monitoring: If you want to use active monitoring from a solar company, sometimes you will have to pay a monthly fee.
Installation of the solar system
Most companies involved in solar energy, when installing, follow the following steps:
- Object evaluation: the installer will come to your home to ensure the safety of planned projects and evaluate the capabilities of work. This person or his team will check your roof, attic and wiring.
- Resolution resolution: in most states a permit for the installation of solar panels is required. Your solar energy supplier must draw up documents in the local municipality.
- Installation: Installation usually takes from one to three days. To do this, you do not have to stay at home, but we recommend that you have the opportunity to ask questions.
- Cleaning: plumbing should remove garbage and leave your property in good condition.
- Municipal Inspectorate: The visitor must compare your provider with your city to make sure your system is encrypted.
- Service connection: When connecting to the network, your system must be connected to a local service system. You submit an application for connecting your energy supplier. Your communal company will want to test your system to make sure that it corresponds to its recommendations for utilities. You can enable the system after obtaining a guidance permit.
Our recommendation
Solar panels for residential premises will help you reduce electricity consumption and CO2 emissions. Installation of solar panels can be a good choice if in your situation the high cost of electricity, incentives for the use of solar energy and a reasonable payback period to save money, so first you will understand how to save energy.
You can use the tool below to find out the cost of solar energy in your postal index.
Frequently asked questions about the cost of solar panels
Good investment in solar energy?
Since the solar industry continues to develop, and the average cost of solar panels continues to decline, solar energy is a good investment for many homeowners. The choice of renewable energy can significantly reduce your electricity accounts. In addition, you can take advantage of various tax benefits, such as: other advantages, such as state loans for renewable solar energy (SRC) and federal tax benefits, can help you earn more money during the service life of your system. What do you spend there.
Does the solar panel for electricity reduce?
Sunny panels can reduce your electricity accounts. However, reasons such as the location of your home and the total electricity tariff will affect whether the solar energy will reduce your electricity accounts.
What is the recovery period?
The payback period is the time required to reimburse the cost of investments. When using a solar photoelectric system, the power corresponds to your electricity costs. The National Laboratory of Renewable Energy Sources (NREL) reports that the average payback period of the photoelectric system is from four to ten years.
How many solar panels do I need for a house with an area of 1,500 square feet?
According to Energysage, you will need an average of 12 or 13 panels to build a house with an area of 1,500 square feet.
How long does the solar panel work?
U0026amp according to Energy Skill Office; Yes, most solar panels serve from 30 to 35 years.
How to choose the best solar company?
We investigated and analyzed dozens of companies engaged in solar panels and the installation of solar panels. Then we created a system of ratings based on the services and products of each installer or manufacturer of solar energy. We took into account a number of important aspects, such as: such as the quality and type of the proposed solar panel, a network of after -sales service, warranty period and restrictions, as well as monitoring and after -sales service, including additional opportunities, such as a mobile application.
Talking directly with representatives, we determined how every solar company sets the installation of solar panels for each house. We analyzed the guarantee options for each company to guarantee product quality and productivity of the warranty industry.
We appreciated each supplier in order to determine his reputation in Better Business Bureau (BBB) based on his rating and history. We also analyzed the last 100 Google reviews for each supplier in different countries and industries.
The best comparison of the solar panels of 2024
