How Much Does Solar Panel Installation Cost? A Money-Conscious Guide

Posted June 10, 2019 by in Decor

    

Homeowners are saving money and helping the environment thanks to solar panels. Many people are familiar with the concept but are maybe unsure of the costs. 

Solar panel installation costs for residential homes have decreased by more than 70 percent in the last decade. Homes that utilize them average higher energy savings.

Are you thinking about adding solar panels to the roof of your home? Are you wondering how much solar panel installation costs? Keep reading to learn more:

How Much Does Solar Panel Installation Cost? A Money-Conscious Guide

Understanding the Gist of It

All right, you probably want to cut to the chase so you know how much to write a check for. But there are a few variables to factor in.

The amount of needed equipment depends on how many kilowatts (kW, watts per thousand) your home consumes on average per month. Past electricity bills should have this conveniently documented.

Let’s hypothetically say your home consumes 4 kW/4,000 watts each month and it costs $3 per watt (this number can vary by location) for solar power. This would mean your house requires approximately $12,000 worth of solar panel equipment.

At first glance that’s not easy on the wallet, but there’s good news! The government mandates a solar tax credit which relieves homeowners 30% of their total cost. That brings us down to $8,400. Not too shabby.

Remember this total number typically doesn’t include the cost for time and labor, leading us to our next point.

Do Your Homework

The solar panel industry is growing and generates $17 billion annually. With many businesses offering installation services it can be difficult to choose.

Just like any other large purchase for your home, never settle on the first quote you receive. It’s best to shop around and compare bids. Doing so could save you up to thousands of dollars in both equipment and installation costs.

Be mindful as well about the variety of solar panel equipment a company offers. The initial costs are the most expensive part. Over time, however, you’ll likely need to update or replace minor components which can significantly add up if the equipment is of poor quality.

Also, research which type of solar panel is best for your home. No two houses are the same and factors such as roof size and location can impact your house’s needs. Some solar panel systems utilize a power grid while others are off it completely.

The best solar company is one that properly assesses your house and provides cost-effective options that will benefit you long term.

Benefits of Solar Panel Installation

When it’s all said and done you can expect the total cost, including tax credit and labor, to be anywhere from $10,000 to $15,000. It’s important to note the exact number will fluctuate for every home and could fall above or below this range. 

While this cost may seem high, the benefits of solar panels will save you costs in the long run. Both your monthly electricity bills and use of carbon dioxide will significantly decrease. Within 20 years you can save thousands of dollars. Think of home solar panel installation as an environmentally friendly investment.

Be sure to check out the rest our blog for other helpful home tips!