How Much Do Solar Panel's Cost?

Cost of Solar Panels

The average cost of a solar panel is around $3 to $5 per watt. Your average residential home is looking at around 5kW to 10kW, which depends on your home size. This means that you can expect to pay around $14,000 to $28,000, depending on how much you need and your location. The average can really shift, for example, if you're looking in the California area it can go down to around $2.81 per watt or $2.31 in Arizona. The price can also vary depending on if you're going to be tied to the existing utility system or go fully off the grid.

Review Your Electric Bill

You're generating your own power now! This means that you will be able to greatly reduce your monthly utility bill. Depending on how many days a year you get sun, you might even be able to reduce your monthly electric bill down to zero. When it comes to considering whether you would benefit from installing solar panels.

Estimate How Many Solar Panels You Need

The average home will need between 20 to 25 panels. The main factor is based on the home size, and what your final intentions are. It is better to build out the whole system you desire upfront as you will save on labor and installation costs. Also, you might end up forfeiting your incentives if you do not do all of the installations in one go.

Federal Incentives

The US federal government wants this to become a reality for as many homeowners that can handle the upfront costs. But you need to hurry because the incentives are set to disappear by 2023. Between now and the end of 2022 the discount incentive (how much you can get back) will be 26%. By 2023 it will be down to 22%! This means in 2024 it will be zero for residential owners, meaning you will end up paying the sticker price.

The Future Of Solar

Energy pricing is headed only in one direction and that is up. It is also variable, so it can shift based on usage and the current market price. Your family size might grow, or you may end up working fully remotely which will also increase the price. Why not take advantage of the guaranteed discount and look to make that solar panel upgrade you've been thinking about anyway. It is a one-time fixed cost that starts paying itself from day one, as it will generate the energy you need naturally. You will see your utility bills go down, and your savings go up. Eventually, you will get to a month where your utility bill becomes an afterthought.