One of the first questions solar shoppers ask when researching solar, what is the cost of home solar panels? For most homes you can determine the cost of solar by the amount of electricity you have to offset. If you are moving into a new home or building an addition, you might not have any historical information to gauge the cost of electricity. If that is the case, you can create a solar panel cost estimate based on the square footage of a home.
While installing a solar power system for your house should be viewed as an investment, the initial price may be prohibitive for some homeowners. Not only does solar equipment appear to be rather pricey, but many individuals are concerned that installation fees and other associated expenditures would soon add up.
We’ll look at how much solar panels cost for a 1,500 square foot house to help you understand how much it would actually cost to put solar panels on an average-sized home. Then, we’ll look at the factors that influence the cost of solar panels, as well as the overall cost of a home solar power system.
We hope that after reading this guide, you will understand that installing solar panels is significantly less expensive than you would expect.
Solar panels for a 1,500 square foot house cost roughly $18,500, with average pricing in the United States ranging between $8,000 and $25,000. According to Modernize, “Solar panel installation costs proximately $18,500 for a 6kW solar panel system for a 1,500 square ft. home, and the price per watt for solar panels can range from $2.50 to $3.50. Residential solar panels are typically 3kW to 8kW in size and may cost between $9,255 to $24,552 in total installation expenses.”
Naturally, you’re asking why there’s such a wide range in the estimations. Prices for solar panels and other components vary greatly. Energy and watt power requirements differ from one home to the next. The actual demand and supply statistics are determined by geographical area, exposure to sunlight, family members, and so on. The cost of installing solar panels varies by state. Furthermore, the kind of installed panels and labor prices in your location have a significant influence on this cost.
Rebates and incentives from federal and state energy departments may also have an influence on the overall cost of installation.
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While knowing the price per solar panel can be beneficial, the true cost comes from the total solar power system and installation. Aside from the cost of solar panels, there are several expenditures associated with a full-scale solar installation on your house. Here’s a short rundown of all the fees associated with an installation:
A 5 kilowatt (5kW) system is the average installation on an American home. In the United States, the average cost per watt of solar systems in 2020 is $2.96 cents.
So let’s get to work! If we multiply 5,000 watts by $2.96, we will get $14,800
But wait, there’s also the Federal Solar Investment Tax Credit to consider! This credit is set at 26 percent for 2021 and 2022 and will allow you to save 26 percent of the total cost of solar installation through a tax credit. When we subtract this 30% credit from $14,800, we get $10,952. After applicable tax credits, the average cost ($2.96 per watt) of a solar system (5 kW) in the United States is roughly $10,592.
To determine how many solar panels you’ll need for your home, evaluate everything that consumes energy. Examining your electricity bill might also give you a fair sense of how many you may need.
You should be able to see the kilowatt-hours on your electricity bill (KWH). The KWH for a home can vary substantially depending on where it is located. A residence in the south is more likely to need a lot of electricity from air conditioners.
Finding the average daily energy use can help you in calculating your solar requirements. Once you’ve calculated your usage, you can calculate how much watts you’ll need to power everything.
Keep in mind that solar panels only operate when they are directly exposed to sunlight. They stop creating energy after the sun has stopped shining on them. Peak sunshine hours are when your panels are directly exposed to the sun and might vary depending on where you live.
Multiply your home’s hourly energy use by the peak sunshine hours in your area, then divide by the wattage of a solar panel. This may be done with both high and low wattage panels to get a sense of what you would require.
Most respectable solar providers can also assist you in determining this if you provide them with this basic information!
The type of system you plan to run is another aspect that will influence the overall cost of your solar panels.
When installing a household solar power system, you have the option of being grid-tied, grid-tied with storage (hybrid system), or completely off-grid. The sort of solar power system you select will have a significant impact on the final cost.
Grid-Tied Systems: Maintain access to the utility grid, which means you may simply lower your power bill while still having access to grid electricity when needed. These are often less expensive since you do not need to offer enough power to run your entire home at all times. You also don’t have to invest in an expensive solar battery bank system to store solar energy.
Grid-Tied plus Storage: It works in the same way as Grid-Tied Systems, but with the addition of a backup battery bank. You may receive electricity from the grid, feed power into the grid for rebates, store power for later use, or supply power directly to your house. Naturally, this is more expensive than strictly grid-tied systems, but it is still feasible.
Off-Grid Systems: Because you do not have access to the utility grid, the solar panels and accompanying equipment must be capable of fulfilling all of your power requirements. Depending on your individual power requirements, you will want a large and powerful solar panel array, as well as a high-capacity solar battery bank capable of storing enough power to suit your needs. These are often expensive systems, but they eliminate the need to pay a utility provider for electricity.
As you can see, having access to a utility grid can help you save money on your solar panels. This is because you do not require a system with a high enough power rating to meet all of your electrical demands. Because you must fully cover your electrical demands, an off-grid solution will almost always cost more money upfront. Again, the more electricity you need to create and store, the more solar panels you will need, and the more efficient/expensive those panels will be.
You want to make sure to utilize high-quality solar panels and solar equipment. Using low-cost or knock-off brands will not yield as many results as using high-quality ones.
A solar system’s correct installation is critical. Inadequate installation might result in ineffective panels, failure, or fires. Always have a professional business perform the installation for your home.
Now that you’ve figured out how solar panels operate and how many you’ll need, it’s time to go green and start saving money. Contact a professional solar company to get a quote for installing a solar system in your house.
Send us a note if you have any more questions regarding solar panels or are ready to have them put in your house.