Going solar has many perks, but the up-front cost is still scary to many homeowners.
According to SEIA, the average annual growth for solar energy is 33%. More people are finding it more affordable to purchase solar panels, but that doesn’t mean it’s not a big purchase. If you’re wondering about the solar panel installation cost, then you’ve come to the right place.
In this post, we’re going to tell you the average price of solar panels and tell you the 5 factors that affect it. The growth of solar energy is one of the biggest positives of the last few years, so keep reading and learn how much it’s going to cost you to come on board.
What Is the Average Price of Solar Panels?
The average price of solar panels in the US is around $12,000 in 2022. When you contact your local solar provider, they may give you a quote that is significantly higher than this. That’s because the average is after the federal investment tax credit is factored in.
The federal ITC allows those who purchase solar power to claim 26% of their installation costs on their taxes. A $16,000 solar system thus becomes $12,000 after taxes are filed. It should be noted that the ITC is scheduled to decrease to 22% at the end of 2022 and disappear altogether by 2024, so the time is right to go solar.
What are the factors that affect the cost of solar installation?
1. Installation and Equipment
The main thing that affects the price of solar panels is the ease of installation and the actual solar equipment that you choose. If you’re installing it off of your roof, it’s going to be cheaper than a rooftop installation where you have to lay down the racking and make sure your roof can handle the weight.
When it comes to equipment, there’s a lot to choose from. The better your solar panels, the more energy savings you’ll see, but the more expensive they are.
2. Your Energy Consumption
How much energy your household consumes will determine how many solar panels you need to purchase. The more you have, the more expensive installation will be. Part of the appeal of solar panels is eliminating your monthly fees, so it’s worth it to get enough.
3. Where You Live
Where in the country you live and how much sun exposure you get will determine how well your solar panels work. A system that sits in full sun is going to need fewer panels to generate the same amount of energy as a larger system that sees a lot of shade.
4. Your Rebates
Incentives and rebates play a big part in the solar panel installation cost. In addition to the federal ITC, there may be similar state tax credits. Some places also allow you to sell your excess energy back to the power grid for a profit.
All of this helps to lower, or counter, the solar installation costs.
5. The Installer
Who you get to install your solar panels affects the cost as well. It’s best to shop around to get the best deal on solar installation. That said, you should always choose a company with a good reputation that can guide you through the process.
Is It Time to Go Solar?
Now that you know a bit more about the average price of solar panels and where the cost comes from, you can decide if going solar is right for you. When you go solar, you see countless benefits, not just to your finances, but to your impact on the environment. If you can afford it, going solar is a no-brainer.
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