Here’s How Much Solar Panels Will Cost You
In the modern era, you cannot live without electricity; everything necessary for life, from heating to video games, is disappearing from the ground. And for most of us, the only option for getting electricity into our homes was paying our utilities to supply it, which averaged about $137 a month . It’s probably not the biggest bill of the month, but it’s still a significant portion of your paycheck, especially since everything else seems to be constantly going up in price.
If you’re looking to save on your energy bills, you’ve probably considered going solar . But harnessing sunlight to power your home is a big project with a lot of expense. How big? This depends on several factors, including your electricity needs, the type of solar panels you’re installing, and the tax credits you’re eligible for.
total cost
The average cost to install solar panels on your home is around $25,000 , but the actual cost will vary widely, and you’ll need to consider the potential savings you’ll realize when you generate your own electricity (and maybe even sell the excess energy back). resulting in your utility). Most solar installations pay for themselves in 6 to 12 years , making them a good investment—as long as you plan to stay in your home long enough to enjoy them.
There are several factors to consider when estimating the cost of installing solar panels:
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Usage. The size of your solar panel depends on how much electricity you need. The average US household uses about 900 kilowatt-hours (kWh) of juice each month, or approximately 11,000 kWh each year. You can see your own consumption by looking at your current utility bill, which will show you exactly how many kWh your home uses per month. Solar installations are rated by watt, and the average cost is about $3 per watt. So, if you have a 6 kWh system installed (which will produce about 8400 kWh each year ), it will cost 3 x 6000 watts, or about $18,000.
One thing to keep in mind is that you don’t have to cover all your energy costs: installing a 4 kWh system that produces about 5,600 kWh per year will still reduce your overall energy costs.
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Type. Panels can be made of different materials that provide different levels of efficiency, which is a measure of how efficiently they convert sunlight into electricity. As with most things, you can go cheaper and less efficient, or pay more for a superior experience. There are four main categories of solar panels:
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Monocrystalline. These are the most expensive types of solar panels, but also the most efficient. Their wholesale cost (not including labor costs and other costs your contractor may pass on to you) is typically $0.75 to $1.50 per panel , but they offer efficiency ratings of 15 to 20% , and sometimes higher.
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Polycrystalline. They’re a little cheaper, typically sold in bulk for under $1 per panel, but their efficiency ratings are also lower (meaning you’ll get less power out of them), peaking at around 16%.
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Thin film. When considered as a “budget” option, they typically cost between $0.30 and $0.60 per panel but provide efficiencies typically below 15%.
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Shingles. Solar shingles are designed to resemble traditional shingles, without the ugly and intrusive grid of panels bolted to your roof. They are quite effective, ranging from 14% to 18% , but are also much more expensive – averaging about $55,000 per installation . If aesthetics are more important to you than money, this is a great choice.
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Another consideration is whether to use a battery storage system, which “stores” energy you generate but don’t need immediately. The battery can then kick in during a power outage, keeping the lights on. But it’s expensive—whole-house batteries can add $10,000 to $20,000 to the cost of a project .
Incentives
Another factor that will affect the overall cost of a solar installation is the incentives you may qualify for. The federal solar PV tax credit can give you back up to 30% of the cost of your installation as a tax credit, although you’ll have to wait until you file your taxes to see the benefit. However, this is a huge breakthrough: if you pay $18,000 up front to install solar panels, you can get $6,000 of it back next year as a tax break.
There are also government tax credit programs and other incentives, such as utility rebates, that can further offset the cost of your installation. These will vary depending on where you live, so you’ll have to do a little local research to find out everything you might be eligible for. If you contact a solar panel contractor, they will probably be very happy to provide you with all of this information as part of their quote.