The Cost of Solar Panels For A Business
The average commercial solar panel system will cost between $1 and $2.50 per watt. Businesses should expect to pay between $125,000 and $500,000+ before any tax incentives or grants are utilized. This cost will vary greatly depending on the size of the system, installation type, and various other factors we covered above.
With the available&#;state and federal incentives, most commercial solar owners could receive 60-90% of the system&#;s cost back within the first few years after energizing the solar panel system.&#;
The chart below shows average installation costs for commercial solar systems, covering an average monthly electric bill of $600, $1,200, and $2,400.
Average Electric Bill
Solar System Size
Cost Before Incentives
Federal Tax Credit
Depreciation
Cost After Incentives
$600
50 kW
$147,500
$44,250
$32,685
$70,565
$1,200
100 kW
$268,800
$80,640
$59,565
$128,595
$2,400
200 kW
$494,400
$148,320
$109,557
$236,523
The Cost of Solar Panels For Homeowners
The average residential solar panel system costs between $2 and $3 per watt to install. This means you should expect to pay between $25,000 and $50,000 for solar, depending on various factors such as the size of the system and the type of equipment used.
After utilizing the 30% federal tax credit, homeowners can expect to pay between $18,000 and $38,000 for solar panels.&#;
The chart below shows average installation costs for residential solar systems, covering an average monthly electric bill of $60, $120, and $180.
Average Electric Bill
Solar System Size
Cost Before Incentives
Federal Tax Credit
Cost After Incentives
$60
5 kW
$26,480
$7,944
$18,536
$120
10 kW
$38,960
$11,688
$27,272
$180
15 kW
$53,285
$15,986
$37,299
The
Overlooked
Costs of Solar Panel Installation
If you&#;re considering installing solar panels at your home or business, it&#;s crucial to be aware of more than just the upfront costs. While solar energy offers numerous long-term benefits, there are several often-overlooked costs that homeowners and businesses should be aware of before making the investment:
1. Maintenance
While solar panels are generally low maintenance, they do require occasional cleaning and inspection to ensure optimal performance. Depending on the location and environmental factors, regular maintenance may be necessary to keep the panels free of dirt, debris, and shading from nearby trees or buildings.
2. Potential Roof Upgrades
Before installing solar panels, it's essential to assess the condition of your roof. If your roof is old or in need of repairs, it may be necessary to invest in upgrades or replacements to ensure it can support the weight of the solar panels and withstand the installation process.
Additionally, if your roof requires maintenance or repairs in the future, it may be necessary to remove and reinstall the solar panels, adding to the overall cost.
3. Inverter Replacement
Solar inverters are essential components of a solar panel system that convert the direct current (DC) electricity generated by the panels into usable alternating current (AC) electricity for your home or business. Over time, inverters may need to be replaced due to normal wear and tear, technological advancements, or malfunctions.
Thankfully, your manufacturer&#;s warranty will most likely cover the replacement of your inverter. However, you would be responsible for the labor to diagnose and fix the issue (unless you have Paradise Energy&#;s Triple Ten Guarantee).
4. Repair Costs
While solar panels are designed to be durable and long-lasting, they are not immune to damage from severe weather events, accidents, or other unforeseen circumstances. Repairing or replacing damaged panels can be expensive, so it&#;s essential to consider the potential for repair costs when budgeting for solar panel installation.
Solar Panel Cost vs. Return on Investment
It&#;s natural to weigh the initial cost of solar panels against the potential return on investment (ROI). While the upfront expense may seem significant, understanding how solar panels pay for themselves over time is crucial for making an informed decision.
The upfront cost of installing solar panels can vary depending on factors such as system size, location, and available incentives. However, it's important to consider the potential long-term savings on energy bills. On average, a 10-kilowatt solar power system can save a typical household about $1,440 per year or $120 per month. Over time, these savings can offset the initial investment, leading to significant financial benefits.
Three Ways Solar Panels Pay for Themselves:
1. Reduced Energy Bills
One of the primary ways solar panels pay for themselves is through reduced energy bills. By generating your electricity from solar energy, you can significantly decrease or even eliminate your reliance on traditional utility providers, resulting in substantial savings over time. These savings can help offset the initial cost of installing solar panels and contribute to a positive ROI.
2. Pay Fewer Taxes
Additionally, homeowners and businesses can take advantage of various federal and state incentives to offset the upfront costs of solar panel installation. These incentives, such as the federal solar investment tax credit (ITC) and depreciation for commercial installations, can significantly reduce the overall cost of installing solar panels, making them more financially accessible for many individuals and organizations.
By leveraging these incentives, you can accelerate the payback period for your solar panel system and increase your overall ROI.
3. Increased Property Value
Another way solar panels help pay for themselves is by increasing the value of your property. Homes and businesses with solar panel systems are often valued higher than those without, making solar panels not only a smart financial investment but also a valuable asset that can enhance the resale value of your property. This increase in property value can further contribute to a positive ROI over time.
Understanding the ROI of Solar Panels
The average ROI of solar panels in the U.S. is approximately 10%. This means that, on average, you'll make a profit of $10 for every $100 you spend installing a solar system. However, it's important to recognize that ROI percentages can vary based on factors such as location, system size, and available incentives. While some homeowners may experience lower returns or longer payback periods, others may see higher returns exceeding 20%.
If you want to learn more about the ROI of residential solar panels, or the ROI of solar panels in a particular state, read our blog: The Payback and ROI of Residential Solar Panels.
If you want to learn more about the ROI of commercial solar panels, or the ROI of solar panels in a particular state, read our blog: What is the Average ROI for Commercial Solar Panels?
Reducing Solar Panel Costs
Federal and State Incentives for Solar Panels
When evaluating the cost of a solar panel system, it is crucial to take into account the numerous incentives available for solar panel owners. These incentives can significantly impact the overall cost and make solar panel installation a more financially viable option.
The readily available incentives for a solar system investment are:
Reduced monthly electric bills - that's sustainable savings that you can bank on
Protection from rising energy rates and independence from your utility company - You're in control
For commercial projects, the&#;
30% federal tax credit
&#;can be used to recover owed taxes from the prior three years. Additionally, this can be carried forward 22 years for businesses and 12 years for homeowners.
Businesses and farms can utilize&#;
accelerated depreciation
&#;to quickly offset additional tax liability.
Farmers and other rural businesses may qualify for a&#;
50% USDA Reap Grant
There are many&#;
local government and utility incentives
It&#;s sustainable and good for the environment
Comparing Quotes
Obtaining multiple quotes from different solar companies gives you valuable insight into the range of pricing options available in the market. Each solar installation company may offer different packages, equipment options, and financing plans, all of which can impact the overall cost of your solar panel system.
Ensuring Competitive Pricing
By comparing quotes, you can identify outliers and ensure that you're getting the most competitive pricing for your solar panel installation. Some companies may offer discounts or special promotions, while others may provide more comprehensive warranties or additional services at no extra cost. Without comparing quotes, you may miss out on potential cost-saving opportunities.
Finding the Best Deal
Ultimately, the goal of comparing quotes is to find the best deal for your solar panel installation. This doesn't necessarily mean choosing the cheapest option; instead, it's about finding the most value for your investment. Consider factors such as equipment quality, installation experience, warranty coverage, customer reviews, and ongoing maintenance support when evaluating quotes to make an informed decision.
Tips for Comparing Quotes
Request quotes from multiple reputable solar installation companies in your area.
Ensure that each quote includes detailed information about the proposed solar panel system, including equipment specifications, installation costs, warranties, and financing options.
Don't hesitate to ask questions or seek clarification on any aspects of the quotes that are unclear.
Take your time to carefully review and compare each quote before making a decision.
In conclusion, comparing quotes is an essential step in the solar panel installation process. By obtaining multiple quotes and carefully evaluating them, you can ensure competitive pricing and find the best deal for your solar energy needs.
DIY Solar Installations: Pros, Cons & Costs
Thinking about taking the DIY route for your solar panel installation? It's an appealing idea for many homeowners looking to save money and take control of their energy production. However, DIY solar installations come with their own set of pros, cons, and costs to consider before diving in.
Pros of DIY Solar Installations:
1. Cost Savings
One of the most significant advantages of DIY solar installations is cost savings. By eliminating labor costs associated with professional installation, you can potentially save thousands of dollars on your solar panel system.
2. Hands-On Experience
DIY installations provide homeowners with a hands-on experience, allowing them to learn about solar technology and gain valuable skills in the process. It can be a rewarding and educational project for those interested in renewable energy.
Cons of DIY Solar Installations:
1. Complexity
Solar panel installation is a complex process that requires technical expertise and knowledge of electrical systems. DIY installers may encounter challenges with permits, wiring, interconnecting with the utility, and safety compliance, leading to potential issues and safety hazards.
2. Safety Risks
Working with electricity and climbing on rooftops poses inherent safety risks, especially for inexperienced individuals. Without proper training and safety gear, DIY installers may be at risk of accidents, injuries, or electrical hazards.
3. Warranty and Insurance
DIY installations may void warranties on solar panels and related equipment, as manufacturers typically require professional installation for warranty coverage. Additionally, homeowners insurance policies may not cover damages or accidents resulting from DIY installations.
Costs of DIY Solar Panel Installations
While DIY solar installations offer potential cost savings on labor, homeowners must still consider the upfront costs of equipment, permits, and tools. Additionally, unforeseen expenses for repairs or modifications may arise during the installation process.
It's essential to weigh the pros and cons carefully and assess your skills, resources, and comfort level before embarking on a DIY solar installation. If you decide to pursue this route, thorough research, proper training, and adherence to safety protocols are crucial for a successful outcome.
Frequently Asked Questions (FAQs)
What is the average solar panel monthly cost?
The average monthly cost of solar panels depends on factors such as system size, energy consumption, and financing options. However, homeowners can typically expect to pay between $100 to $200 per month on solar panel financing or lease payments.
How do solar panel costs vary for commercial vs. residential installations?
Commercial solar installations tend to be larger and more complex than residential systems, resulting in higher upfront costs. Additionally, commercial installations may require additional engineering, more permitting hurdles, and utility upgrades to transformers and other equipment, further impacting the overall cost. On the other hand, residential installations are typically smaller and more straightforward, leading to lower upfront costs.
How much does it cost to get solar panels?
The cost of solar panels varies depending on factors such as system size, panel type, installation complexity, and location. On average, homeowners can expect to pay between $25,000 to $50,000 for a residential solar panel system before incentives.
What is the expected maintenance cost for solar panels?
If properly installed, solar panel systems require minimal maintenance. Most solar panels and inverters come with lengthy warranties. Any maintenance costs will typically be associated with occasional cleanings, system inspections, and warranty diagnostic work.
At Paradise Energy Solutions, we build average maintenance costs into the cash flow we provide with our proposals. This will give you insight for how these costs will impact your ROI and payback. We also offer a Triple Ten Guarantee that covers most maintenance costs in the first ten years.
How much do ground-mounted solar panels cost?
Ground-mounted solar panels tend to be more expensive than rooftop installations due to additional material and labor costs associated with mounting structures and wiring. On average, homeowners can expect to pay between $20,000 to $40,000 for a ground-mounted solar panel system before incentives. Businesses can expect to pay $150 to $500,000+ for a ground mount system.
Do you really save money with solar panels?
Yes, solar panels can lead to significant savings on energy bills over time. Homeowners and businesses can reduce or eliminate their reliance on grid power by generating clean electricity from the sun, resulting in lower monthly energy expenses and long-term savings. System owners can also enjoy significant tax savings.
Are solar panels worth buying?
Yes, investing in solar panels can be a wise financial decision for homeowners looking to reduce energy costs, increase property value, and contribute to environmental sustainability. With favorable incentives and decreasing installation costs, solar panels offer an attractive return on investment for many homeowners.
Take The First Step Towards Energy Independence
While this blog provides estimates of what you can expect to invest in a solar panel system, each solar installation is truly a custom solution. That's why it's important to request your free custom quote to get an accurate cost for your installation.
Contact our team of solar consultants to get started with your custom quote.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .
Our banking reporters and editors focus on the points consumers care about most &#; the best banks, latest rates, different types of accounts, money-saving tips and more &#; so you can feel confident as you&#;re managing your money.
Bankrate follows a strict editorial policy , so you can trust that we&#;re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts , who ensure everything we publish is objective, accurate and trustworthy.
Founded in , Bankrate has a long track record of helping people make smart financial choices. We&#;ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate&#;s editorial team writes on behalf of YOU &#; the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you&#;re reading an article or a review, you can trust that you&#;re getting credible and dependable information.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you&#;re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate follows a strict editorial policy , so you can trust that we&#;re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
We&#;re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate follows a strict editorial policy , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life&#;s financial journey.
The average solar panel cost in the U.S. ranges between $17,350 and $38,000, depending on where you live and before applying incentives. While the cost of solar panels has dropped by more than 40 percent in the past decade, investing in solar is still a hefty purchase. The total price will depend on the size of your system, solar components, installation costs and other factors. You can lower the cost through solar incentives and tax credits at the federal, state and local levels.
Solar panels can be a great solution to rising energy bills or frustration over power outages in your area. An installed solar panel system generates electricity to power your home, meaning you wouldn&#;t need to pay as much for traditional electricity from the grid, ultimately lowering your energy bills.
Interested in understanding the impact solar can have on your home? Enter some basic information below, and we&#;ll instantly provide a free estimate of your energy savings.
The average cost of solar in the U.S. is $31,558, based on the latest cumulative data from the Lawrence Berkeley National Laboratory, a Department of Energy Office of Science laboratory. Solar panel costs are calculated by the price per watt. The average price per watt in the U.S. is $3.67 for an 8.6 kW system (rounded up). Compare the average cost of solar in the U.S. based on system size before applying incentives.
Solar system size (kW) Total cost4 kW
$14,680
6 kW
If you want to learn more, please visit our website FAQ of solar panels.
$22,020
8 kW
$29,360
10 kW
$36,700
12 kW
$44,04
To estimate how much a system will cost, multiply the price per watt by the system size. The system size you&#;ll need depends on your energy consumption, typically over a 12-month period. You can check past electricity bills for a monthly estimate of your energy usage and use that amount to find your 12-month usage.
The average cost of solar panels varies by state due to several factors. The total cost will depend on the individual system, but local factors impact it as well. For example, average energy usage varies by state, which affects the typical solar system size that a household needs to completely cover how much energy they consume.
The following table shows the average cost of solar panels in each state, as well as the average monthly solar loan. The loan amount is based on the cost of a solar system before factoring in tax credits. Because you&#;ll apply for the federal tax credit after purchasing solar panels, you can apply the tax credit savings to your solar loan to decrease your monthly payment.
State Average PriceArizona
$3.07
8
$24,560
$17,192
$175.96
Arkansas
$3.49
9
$31,410
$21,987
$225.03
California
$3.47
5
$17,350
$12,145
$124.30
Colorado
$3.98
5
$19,900
$13,930
$142.57
Connecticut
$3.75
6
$22,500
$15,750
$161.20
Delaware
$3.09
8
$24,720
$17,304
$177.10
Florida
$3.21
9
$28,890
$20,223
$206.98
Georgia
$3.74
9
$33,660
$23,562
$241.15
Idaho
$3.46
8
$27,680
$19,376
$198.31
Illinois
$3.76
6
$22,560
$15,792
$161.63
Indiana
$4.10
8
$32,800
$22,960
$234.99
Iowa
$4.01
8
$32,080
$22,456
$229.83
Kansas
$3.34
8
$26,720
$18,704
$191.43
Kentucky
$2.88
9
$25,920
$18,144
$185.70
Louisiana
$3.80
10
$38,000
$26,600
$272.24
Maine
$3.80
6
$22,800
$15,960
$163.35
Maryland
$3.54
8
$28,320
$19,824
$202.89
Massachusetts
$4.06
5
$20,300
$14,210
$145.44
Michigan
$4.06
6
$24,360
$17,052
$174.52
Minnesota
$4.03
7
$28,210
$19,747
$202.11
Mississippi
$3.14
10
$31,400
$21,980
$224.96
Missouri
$3.37
9
$30,330
$21,231
$217.29
Nevada
$3.08
7
$21,560
$15,092
$154.46
New Hampshire
$4.22
6
$25,320
$17,724
$181.40
New Jersey
$3.53
6
$21,180
$14,826
$151.74
New Mexico
$3.93
5
$19,650
$13,755
$140.78
New York
$3.65
5
$18,250
$12,775
$130.75
North Carolina
$3.51
9
$31,590
$22,113
$226.32
Ohio
$3.41
8
$27,280
$19,096
$195.44
Oklahoma
$3.13
9
$28,170
$19,719
$201.82
Oregon
$3.50
8
$28,000
$19,600
$200.60
Pennsylvania
$3.55
8
$28,400
$19,880
$203.47
Rhode Island
$4.07
5
$20,350
$12,245
$145.79
South Carolina
$3.45
9
$31,050
$21,735
$222.45
Tennessee
$3.58
10
$35,800
$25,060
$256.48
Texas
$3.33
9
$29,970
$20,979
$214.71
Utah
$3.29
6
$19,740
$13,818
$141.42
Vermont
$3.85
6
$23,100
$16,170
$165.30
Virginia
$3.59
9
$32,310
$22,617
$231.48
Washington
$3.59
9
$32,310
$22,617
$231.48
West Virginia
$3.39
10
$33,900
$23,730
$242.87
Wisconsin
$3.88
6
$23,280
$16,296
$166.79
*Data sourced from Find Energy and Bankrate&#;s Loan Calculator
**Monthly loans based on 20 year loan terms and 6 percent interest rate
The price of the individual system components (like panel modules, inverters or optional solar batteries) isn&#;t the only factor impacting the total cost of a solar panel system. You should also consider soft costs, including installation, taxes, inspection fees and more, all of which contribute to the total price.
Includes the
materials and components of the system, like solar panel modules, inverters and mounting equipment.
Include
installation expenses, permits and administrative fees. Soft costs make up approximately 65 percent of the total cost of a solar system, according to the
Solar Energy Industries Administration
(SEIA).
Data from the National Renewable Energy Laboratory (NREL) breaks down typical costs associated with solar panel installation:
This is all of the hardware you need in a solar system, including
monocrystalline
solar panels, inverters and mounting equipment. Hardware prices will vary by components, specifications and manufacturers. Equipment makes up 35 percent of the cost of a solar system.
Solar installers charge for the labor and installation of solar panels. You can expect several people on-site to complete the installation. Installation costs make up 19 percent of the cost of a solar system.
Overhead includes the marketing, sales and administrative costs associated with running a solar installation company. You wouldn&#;t pay overhead costs directly, but they will be included in the overall cost for the installation. Overhead costs make up 11 percent of the cost of a solar system.
According to the latest data from SaveOnEnergy, the average monthly electricity bill in the U.S. in October was $145.73, or about $1,750 annually. (SaveOnEnergy is also owned by Bankrate&#;s parent company, Red Ventures.) Depending on how you pay for your solar system, you may experience immediate savings. If you finance your solar panel system, you may not experience savings right away, but likely will in the coming years as you gain a return on your investment.
Financing your system through a solar loan may not provide instant savings because you&#;ll need to account for a monthly loan payment. Your loan payment is affected by your system size and annual energy consumption. As an example, the average system costs $22,091 after tax credits. If we assume a 6 percent interest rate over 20 years, your monthly loan payment will be around $158 per month.
You can use your energy bill to estimate how long it will take to experience a return on your solar investment. As an example, we&#;ll use U.S. averages:
Average cost of an 8.6 kW solar system: $31,558
Installed cost after factoring in the 30 percent tax credit: $22,091
Annual energy bill:
$1,750
$22,091 / $1,750 = 12.6 year payback period
Solar panel manufacturers normally provide a 25- to 30-year warranty on the solar products. Given the average payback period is under 13 years, solar panels could help you save money on energy costs for well over a decade after you&#;ve paid them off. However, your energy usage is ultimately what determines how much you&#;ll pay on energy bills. As energy rates fluctuate, the potential savings with solar may change as well, impacting the payback period.
It&#;s clear that solar panels aren&#;t cheap, but you can offset a portion of the installed cost through incentives like rebates and tax credits. The most important solar incentive to know about is the federal Residential Clean Energy Credit, which is part of the Inflation Reduction Act. If you own a solar system, you can claim 30 percent of the total cost of your system as a credit when you file your federal tax return.
Because the Residential Clean Energy Credit is a federal incentive, you can apply no matter where you live or what tax bracket you&#;re in. To qualify for this Inflation Reduction Act incentive, you must meet the following criteria:
You must own your system (solar loans count, leases and
power purchase agreements
do not)
Your system must be new &#; you cannot claim the credit if you purchase a house with solar panels already installed
The system must be installed between January 1, and December 31,
Your solar system must meet all state requirements and pass inspections
You must install the solar panels on either your primary or secondary residence
The Residential Clean Energy Credit offsets the installed cost of a solar array by 30 percent. Here&#;s how the math works out for the average solar system:
Average solar system cost 30 percent federal tax credit Cost after credit$31,558
$9,467 in credit
$22,091
Many states and local governments offer solar incentives, too. You can combine state solar incentives with the Inflation Reduction Act tax credit to further lower the price of solar panels.
If you have the money available, you can purchase your solar system outright. You won&#;t have to worry about interest rates or monthly payments. A cash purchase typically leads to the most immediate and highest savings in the long run, but it is not always feasible because of the steep upfront cost. However, there are several financing options available depending on your needs.
Personal loans
have fixed interest rates and fixed monthly payments, making them a reliable and predictable option. You will still qualify for solar rebates and incentives if you finance with a personal loan.
These mortgage loans help you finance your home and solar panels at once. An
FHA 203(k) loan
offers financing for the purchase of a home and remodeling and repairs, all rolled into a single loan. A
Fannie Mae HomeStyle loan
does the same, with both first mortgages and refinances. There&#;s also the
CHOICERenovation mortgage
from
Freddie Mac
, which offers loans to pay for renovations. These types of loans are often easier to qualify for, although they may also come with higher interest rates. These may be especially good options if you are purchasing or gut-renovating a home and want to install and finance solar panels at the same time.
If you have a lot of equity in your home, a
home equity loan
or
HELOC
may be an option &#; letting you borrow against your ownership stake. A home equity loan normally comes with fixed interest rates and predictable monthly payments. HELOCs often come with variable interest rates, which could change over the lifetime of your loan. The interest you pay on these loans may be tax-deductible, helping you lower the amount you owe in taxes.
Through a solar lease or
PPA
, the installation company owns the system, but the electricity from the panels powers your home. The upfront cost is low and you only pay a monthly rate to lease the system, but you won&#;t qualify for most incentives or tax credits because you don&#;t own the system.
Before signing a contract with a solar installation company, it&#;s important to know whether solar panels will work well for your home and budget. A few things to consider include your current energy costs, incentives in your area that impact the price and how much sunlight your roof receives.
The amount you pay in electric bills each month depends on electricity rates in your area and how much energy you use. The more energy you consume, the higher your bill will be. The same can also be said for electricity rates &#; higher rates will often equal a higher bill. There are some exceptions to this rule. Check your utility bills for an estimate of how much you&#;re currently paying and how much energy you normally use each month.
Your energy consumption levels can help you estimate the size and cost of the solar system that would cover your energy needs. Depending on how much you normally pay for energy, solar may or may not be a logical choice. If your bills are normally low, investing in solar panels might not provide enough financial benefits to outweigh the cost. If you&#;re often charged high electricity bills, installing solar panels could make financial sense.
You should also factor in the average cost of a solar array in your state compared to your typical electricity bill. It might make sense to invest in solar panels if you live in a state where bills are normally high but solar costs are low. On the flip side, solar panels might not be worth it if you live in an area where energy bills are usually low and solar panels are more expensive.
Solar incentives and credits are readily available across the U.S. and can make the switch to solar more affordable. We&#;ve already discussed the 30 percent federal tax credit, which is part of the Inflation Reduction Act and offsets the average cost to install a solar system by $9,467.
Another common solar program is net metering, which is offered in some form in almost every state. Net metering lets you return excess solar power generated by your system back to the power grid in exchange for credits on your electricity bills. To participate in net metering, solar owners need to remain tied to the grid. They can monitor their net metering credits to understand the financial savings that the program offers. Many states also have policies to exempt residents from additional sales or property taxes on solar panels. The Database of State Incentives for Renewables & Efficiency provides a complete list of solar incentives by state.
Solar panels will produce the most electricity when they receive a lot of sunlight. The general consensus is that solar panels are more effective when they get at least four hours of direct sunlight every day.
Solar panels can still generate electricity in indirect sun, although it will be less than if they received direct sun. This applies to cloudy and rainy weather conditions as well. However, if your roof is shaded or you live in a particularly cloudy region of the U.S., solar panels might not be worth the price tag.
Most residential solar systems are installed on rooftops. Before installing solar panels on your home, your roof will need to be in optimal condition. Depending on the age and condition of your roof, you may need to pay for repairs, maintenance or a roof replacement before installation day.
The average homeowner in the U.S. will spend about $9,117 on a new roof. Roof maintenance will not be factored into the price of a solar panel system, so it&#;s an important cost to consider before signing a solar contract.
The most accurate way to determine how much money you can save with solar is by getting a quote from a reputable installer.
For more information, please visit solar shingles california.