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It is proven that solar panels allow homeowners to save an average amount of $115 worth of electricity per month. As the usage of solar systems is increasing every year, more and more manufacturers and investors are showing interest in this industry. Therefore, due to competition, solar panel costs are going down rapidly daily. Many Americans are switching to solar panels due to their benefits as it lowers their utility bills resulting in their financial stability.
Average Solar Panel Prices
Solar panels provide an excellent opportunity to reduce your monthly electricity bills. They are an alternative energy source that requires an up-front investment but will grant you long-term financial savings.
The average cost of solar panels per watt can range from $0.30 to $1.50, depending on the type of solar panel.
How Much Should Solar Panels Cost per Watt?
Before we understand how much solar panels should cost per watt, you must consider that the following factors will affect the cost of a solar system for your house or business.
- Your current energy consumption will affect how quickly you redeem the initial solar investment.
- The more energy you consume, the larger your solar system will require.
- The net metering policy in your local region gives the electricity consumers a given credit for the solar power they add back to the grid.
- The federal tax credits will allow you to deduct a percentage from the federal taxes of solar energy system costs.
The upfront investments that solar energy system requires are the equipment and installation cost. Afterward, you will only have to pay for the electricity consumption beyond the solar panel’s power generation. If you install the correct size of solar panels for your house or business, you will surely see a return on your investment within a few months.
The amount of energy produced by a solar panel is calculated in kWh. A typical residential property accommodating 3 to 5 people needs a 5kW solar system. A 5 kW solar panel system can produce about 4285 kWh of electricity annually, costing about $3,500 – $7,500.
What Percentage of Americans Have Solar Panels?
President Joe Biden has recently signed new legislation that provides a 30% solar tax credit to address climate change via investments in renewable energy sources. This provision has encouraged more Americans to opt for solar power installations over the next few years.
According to Pew Research Center, almost 8% of the USA house owners have already gone “solar,” and 39% of people were seriously considering going for it in the future. This survey generated results before the announcement of the 30% solar tax credit, which only explains that the numbers are expected to rise in the future.
Solar Panel Pricing Per Watt
An average 1000-watt solar panel costs between $700 to $1500. As the number of watts increases, the average price range of solar panels increases. Remember that most home and small business owners need 10 to 20 solar panels to cover their electricity needs.
The solar panels cost per watt depends on the following:
- the brand and retailer,
- the type of solar panels,
- And the solar system size.
Solar Panels Cost According to Type
There are three major types of solar panels:
- Monocrystalline Solar Panels
- Highest energy efficiency
- Cost range from $1 to $1.50 per watt
- A 6kW system will cost about $6,000 to $9,000.
- Thin-Film Solar Panels
- Less expensive than other solar panels
- Require a lot of space for installation
- Shortest lifespan
- Heat tolerance, ideal for an industrial setting
- Cost range from $0.70 to $1 per watt
- A 6kW system will cost about $4,200 to $6,000
- Polycrystalline Solar Panels
- More affordable than monocrystalline solar panels
- Cost range from $0.90 to $1 per watt
- A 6kW system will cost about $5,400 to $6,000.
How Much Do Solar Panels Installation Cost?
The installation of a solar energy system includes the cost of individual solar panels, installation price, and operational and labor costs. A homeowner can expect to pay between $14,870 and $55,540 as the total installation cost.
Most solar panels come with a warranty that doesn’t cost you additional charges for repairs.
Solar System Panels and Equipment Cost
When you have decided on your solar provider, they will arrange a site review to ensure that your roof can accommodate said solar panels. The inspection of your electrical system is also included in this survey.
Next, the solar provider will recommend certain brands according to your budget and requirements and install a personalized solar system. The local solar panel quoting trends will affect the cost of your solar panels. Different states have different solar panel costs.
Your roof’s characteristics and the difficulty with which the solar panels are installed will also increase the cost of your overall solar system.
There are several ways you can pay for your solar panel system. You can either pay the cash up-front or opt for a solar-specific loan.
Factors That Influence Solar Panel Cost
Several key factors affect the pricing range of your solar panels.
The roof layout and amount of sun exposure a solar panel receives determine how much return you will get on your investment. If you have an angled roof facing south, west, or southwest, your solar panels will receive the most sunlight.
If your roof is flat or requires repairs, the construction of an angled platform or additional support will bring in additional costs.
Cost of Your System Depending on the Number of Panels
Average houses require 5kW to 6kW solar systems. If 250-watt solar panels are used in the house, then you will have to install 20 panels, costing you around $11,000. The cost will only go up if you install a larger solar system with more panels.
Even though there are less expensive options, people still consider expensive and efficient solar panels as their topmost priority for their homes and businesses, as high-efficiency panels will benefit their initial investment with outstanding performance, including several years’ warranties.
Location and Type of Solar Panels
Developing solar technologies allows solar panels to work in various locations and weather conditions. Most property owners prefer to install monocrystalline solar panels. Even though they are expensive solar panels, these panels deliver the most energy by absorbing any amount of sunlight exposure regardless of where you live.
Solar Cell Price
Solar panels contain many solar cells, and the parallel circuit assembly produces electrical energy. A single solar panel uses anywhere between 60 to 72 solar cells, and an average solar cell cost is about $0.30. The number of cells in a solar panel determines its price.
Commercial solar panels cost less than residential ones, as they contain fewer solar cells but are bigger in size. Hence, it costs more to set up commercial solar panels than residential ones.
Talk to a Professional – America Green Solar
Even though the initial investment can seem like a lot of money, your solar panels will eventually bring in additional savings after a few years. The panels are durable, and in addition to saving your money on utility bills, installing a sound solar panel system also increases your property value.
This is a great time to take advantage of the federal solar tax credit, so start asking for solar panel costs from the local installers in your area, and save a lot of bucks on your next electricity bill.