Solar panels are among the most recognizable signs of green living. People recognize this alternative energy source as an effective way to cut energy waste. It can also help people save money by reducing or eliminating their energy bills.
However, for decades, homeowners have asked, “How much do solar panels cost?” The answer to this question has improved dramatically over the last several years.
The 2010s reduced solar panel costs drastically as new technology simplified their designs. Now, the federal government wants to decrease this cost by 60% over the next decade.
We’ll explore the average price of solar panels in the guide below. We’ll also give you tips on saving money when searching for a system!
How Much Do Solar Panels Cost?
Currently, the national average price of solar panels falls around $15,000-$25,000. The cost usually breaks down to $3-$5 per watt, with most household systems generating 5-kW.
However, this does not mean that solar panels are unaffordable. Solar panel companies often provide various payment plans to suit your budget. You can also take out a loan to cover the costs and structure an affordable payment plan.
Also, remember that this is the national average. It does not include incentives and tax credits in its cost. We’ll talk more about these credits in the next section!
Are Solar Panels Expensive Everywhere?
As mentioned before, the national average price range for solar panels falls between $15,000-$25,000. However, there are other factors to consider that affect this sum.
First, the federal government offers a 26% tax credit for systems installed in 2022. This tax credit decreases to 22% for systems installed in 2023.
This credit deducts more than a quarter of the system’s original price. Additionally, the federal government is not the only one that offers tax incentives for solar panels.
Several states offer tax credits for solar panels, too. Because of this, the average cost of solar panels by state varies significantly from the national average.
For example, the starting cost for a 6-kW system in Alabama falls around $13,700. In comparison, Colorado’s starting price is almost $4,000 more.
So, do some research on the price of solar panels in your area. You may find it’s more affordable than you’d expect!
Are Solar Panels Worth the Cost?
Let’s say you can’t find cheap solar panels in your area. If so, you may wonder, “are solar panels worth the cost?”
The answer depends on a few factors. First, can your solar panel system eliminate your energy bill?
This question often depends on where you live. Solar panels perform best with full sun exposure. However, many climates have cloudy weather which makes this hard to achieve.
However, these panels pay for themselves if you can eliminate your energy expenses! You can use these panels to cut this expense for years to come.
Find The Solar Panel System You Need
The answer to, “How much do solar panels cost?” is more complicated than it may seem. Several states offer cheaper solar panel prices than you’d expect.
Likewise, federal tax credits can make solar panels more affordable for the average homeowner. So, consider whether you’d like to finance a solar installation. If so, contact an installment crew today!
We hope you enjoyed this article! Solar panels are just one of many subjects we discuss on this site. Check out our other content today for more helpful tips.