By Sarah Lozanova, Solar Energy Writer
Solar energy installations have skyrocketed in recent years; it’s likely there are some in your neighborhood. One of the reasons solar power has become so popular is the cost of solar systems has plummeted in the last decade or two. As a result, many more households can afford to install solar.
But just how much will a solar system cost? Many homeowners want to get a sense of the cost before having a solar company inspect their property or giving away their personal information online.
Ballpark Solar System Cost
According to Energy Sage, the average solar system costs about $2.77 per watt installed. This price covers labor, permitting, solar panels, the inverter, and other solar equipment, but prices may vary by the installer, solar panel location, and equipment.
The size of your solar energy system will be determined by your total electricity usage, available space for installing solar panels, and budget. To determine how much electricity you use, review your electric bills for the past year or more.
The average home needs about a 6 kilowatt (kW) solar system, which costs roughly $17,000 before incentives. If you can take advantage of the federal solar tax credit in 2022, you can receive a tax credit for 26% of the total system cost. If you install your system in 2023, then the solar tax credit is 22% of the total cost. Speak with a tax expert to ensure you can take advantage of the tax credit.
Estimates based on a 6 kW solar system minus tax credit by year:
Factors Affecting a Solar System’s Cost
There are several factors that impact the cost of your solar panel system. Let’s explore them so you know what to expect.
Solar System Size
If your home doesn’t consume a lot of electricity, you might be able to install a solar system that will cover 100% of your needs. Some homeowners install an extra couple of solar panels specifically for charging an electric vehicle.
Image Credit: Vivint Solar