The question that everyone is asking themselves: How much does solar panels cost? The costs is something an increasing number of homeowners are weighing against the price of their other bills. Just like electric cars, solar panels once seemed “alternative,” even fanciful-but are now soaring into the mainstream with ear-popping speed. There have been a lot of recent changes in technology, bringing the costs of solar panels down. With lower energy bills, it’s no wonder that many homeowners are super interested about adding solar panels to their homes.The question now is, how much does solar panels cost? And How much do they save you in the long run? Here are the following things you need to keep in mind.
Solar Panel Costs Breakdown
What you will need to pay for solar will vary in your state and the size of the solar panel system. Just put it this way, the more energy you want to generate, the more solar equipment you will get. The average on solar panels will cost $3.70 per watt. This means the average size 5 kilowatt solar system would run about $18,500.
Yes, that does seem expensive. But the price will end up being much less when you factor in the many government incentives that help pay for it.
How much is “lower costs” for installing solar panels?
One of the biggest ways to reduce solar panel installation costs is the 30% federal tax credit that you invest in, which was extended to 2019. States will offer their own breaks as well, add them together, and the savings will be much more.
For example, say you are a homeowner in Anaheim, CA, who wants to install a large 7 kilowatt panel system. Multiply that by the national average $3.70 per watt, and you will get the total solar panel cost of 25,900. But then you will need to factor in the city and state rebate.
If you are eligible for the rebate, they would essentially take in $800 per kilowatt—or $5,600—for your installation. This would bring your total down to $20,300. The 30% federal tax credit takes away an additional $6,090, so your total adjusted cost is $14,210—more than $10,000 less than the original price. If you want to know the costs of installing solar panels please click here to contact us for a free estimate.