Costs of Solar Panels
Solar installation seems like an obvious choice for many homeowners due to the rising price of electricity from other sources.
However, the costs of solar panels and whether or not they will help you save money are dependent on several key factors.
How much does solar panel installation cost for homes?
According to the Center for Sustainable Energy, the average cost of solar panel installation and system costs can range from $15,000 to $25,000 on an annual basis.
The location of your home can have a significant impact on electricity rates. According to U.S. Energy Information Administration data for 2022, the national average electricity rate is approximately 14 cents per Kilowatt-hour.
Learn how your location, electric bill, and incentives affect your wallet before you decide to make the leap.
According to the Solar Energy Industries Association, $2.94 per Watt is the national average price for a residential solar panel system. The per-watt price is just below $11,000 for a 5-kilowatt system (kW), which is the standard size residential solar system in the United States.
Prices for solar panels vary by brand and retailer. Solar panels only make up a small fraction of the initial cost of setting up a solar system. The remaining costs for solar panels include installation (including support equipment) as well as ongoing maintenance.
These are the steps you should take to find out if you will save more on solar panels than you pay. For this purpose choose the Nevada solar company wisely.
1. Review your electric bill
Solar panels produce their own electricity and can greatly reduce your monthly electricity bill. Switching is more beneficial if your monthly bill is higher. However, electricity rates and usage -- which are the main charges on your bill -- can fluctuate.
2. Evaluate your sunlight exposure
Solar energy is more efficient when there's more sun. Arizona and California have more sunshine hours per day than others.
The output of a solar system is affected by the orientation of your home to the sun, its shade level, and the type of roof.
3. Decide if solar is the right option for your home.
If you live near high energy rates, have a good solar rating, and are able to afford the initial investment it is worth considering installing solar panels at your home. You won't be able to eliminate your electricity bill overnight.
You should shop around for incentives before you purchase solar panels. If you want to spread the cost of solar panels, you might consider financing them with a mortgage. It's not necessary to buy solar panels. You can also lease them. Although you will pay a lower initial cost, the panels won't add value to your home and may not qualify you for incentives.
4. Get an estimate and compare the residential solar panel prices
The installation and purchase of solar panels will be the most expensive.
It is possible to make up the upfront costs by paying minimal long-term expenses. Nilsen states, "Most systems don’t need much maintenance and can last for 20 or more years with little to no change in the amount of electricity generated."
To calculate the total cost, you should consider how much energy your household uses. Your monthly utility bill lists your consumption. Then, determine the size of the system needed to generate that amount.
Installation costs for a residential 5kW system are $3 to $5 per Watt, which is within the $15,000 to $25,000 price range. This cost does not include tax credits or incentives.
Solar Panel Savings
Although solar panels will reduce your electricity costs, your local electricity rates, size, angle, and hours of direct sunlight will all affect the savings you get. For an indication of savings, homeowners can compare the monthly electricity bills they pay with solar panels.
Solar panels are also more affordable than ever. According to the Solar Energy Industries Association, the cost of solar panel installation has dropped by more than 70% over the past decade.
Although you will receive an electricity bill, it is unlikely that you will owe any money. Instead, the bill will display how much electricity you used and the net credits. If you supply more electricity to your grid than you draw from it, your utility may roll over the credit as a credit for next month.